# MoneyIQ’s Singapore TDSR calculator

## How to useÂ TDSR calculator

**Definition**

Monthly Income (Fixed) –Â Monthly gross salary (fixed component) as per latest pay slip or other acceptable income document. Excludes employer’s CPF contribution.

Monthly Income (Variable) – Average monthly commission, allowances or overtime pay.

Monthly Expenses – Total monthly instalment for all loans (car, property, personal and renovation).

**Example 1:**

Joe wants to buy a private property and wants to use the tdsr calculator to calculate his maximum home loan amount at 60% TDSR. Joe draws a fixed monthly income of $8,000 and services a car loan of $1,000 and credit card loan of $1,000 at the point of loan application. He is 40 years old. With reference to the calculator, he will input

Age | Monthly Income (Fixed) | Monthly Income (Variable) | Monthly Expenses | |

Borrower 1 | 40 | 8,000 | 0 | 2,000 |

Next, enter the preferred tenure 25. (Notice the TSDR calculator automatically show that the maximum tenure is 25 years when the age is 40 years old)

**Results**

The maximum home loan amount is $559,302. If the loan to valuation (LTV) is 80%, the estimate purchase price will be $699,128.

**Note:** If you change the LTV to 60%, the estimate purchase will be $932,171.

**Example 2:**

June Toh wants to buy a private property. She is earning a fixed monthly income of $6,000 and $2,000 variable (commission, bonus). She services a car loan of $800, credit card loan of $1,000 at the point of loan application. She is 32 years old. With reference to the calculator, she will input

Age | Monthly Income (Fixed) | Monthly Income (Variable) | Monthly Expenses | |

Borrower 1 | 32 | 6,000 | 2,000 | 1,800 |

Next, enter the preferred tenure 30. (Notice the TSDR calculator shows the maximum tenure is 25 years when the age is 32 years old)

**Results**

The maximum home loan amount is $587,915. If the loan to valuation (LTV) is 80%, the estimate purchase price will be $734,893. TDSR is assumed at 60%.

**Example 3:**

Lets assume that Joe and June want to buy a private property together. With reference to the TDSR calculator, the inputs will be

Age | Monthly Income (Fixed) | Monthly Income (Variable) | Monthly Expenses | |

Borrower 1 (Joe) | 40 | 8,000 | 0 | 2,000 |

Borrower 2 (June) | 32 | 6,000 | 2,000 | 1,800 |

Next, enter the preferred tenure 25. (Notice although the TSDR calculator shows the maximum tenure is 28 years, in our example, the couple wants to pay off the loan earlier. Therefore the preferred tenure is 25. )

**Results**

The maximum home loan amount is $1,086,645. If the loan to valuation (LTV) is 80%, the estimate purchase price will be $1,358,306. TDSR is assumed at 60%.

#### How accurate is the result?

We did a comparison to UOB TDSR calculator and our result is similar to UOB.

#### What’s next?

The Total Debt Servicing Ratio or TDSR is only one of the factor banks consider when assessing a credit facility. Other factors include borrowers credit history, source of funds, nationality, valuation of property etc. As such you should use the above tdsr calculator as a guide to how much you can afford and not relied it solely as a approval for credit.

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## Contact Us

If you have any questions on the TDSR calculator, please feedback to moneyiq using the form below or email us at contact@moneyiq.sg