How much house can a couple afford calculator

Even though you may qualify for the amount listed above, it may not be suitable for you. You should review your personal situation, and work with your financial advisor, to decide how much you can comfortably afford to borrow. Subject to individual program loan limits.

Your debt-to-income ratio is calculated by adding up all of your monthly debt payments and dividing them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out.  For example, if you pay $1500 a month for your mortgage and another $100 a month for an auto loan and $400 a month for the rest of your debts, your monthly debt payments are $2000 ($1500 + $100 + $400 = $2000). If your gross monthly income is $6000, then your debt-to-income ratio is 33 percent ($2000 is 33% of $6000).

Results of the mortgage affordability estimate/prequalification are guidelines; the estimate is not an application for credit and results do not guarantee loan approval or denial.

Tools and calculators are provided as a courtesy to help you estimate your mortgage needs. Results shown are estimates only. Speak with a Chase Home Lending Advisor for more specific information. Message and data rates may apply from your service provider.

For the Adjustable-Rate Mortgage (ARM) product, interest is fixed for a set period of time, and adjusts periodically thereafter. At the end of the fixed-rate period, the interest and payments may increase. The APR may increase after the loan consummation.

All home lending products except IRRRL are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply. 

Home lending products offered by JPMorgan Chase Bank, N.A.  

What is the maximum TDSR?

It is currently capped at a maximum of 60% of the borrower's monthly income

What is the difference between TDSR and MSR (Mortgage Servicing Ratio)?

With MSR, you cannot exceed more than 30% of your household income and is only applied to HDB flats and executive condos. If you are looking to calculate your MSR, head over to use our easy to use mortgage servicing ratio calculator. However with TDSR, the loan limit is capped at 60%of your gross monthly income.

What is the TDSR formula?

It is calculated by dividing the borrower's debt obligations over gross monthly income. (Borrower's total monthly debt obligations / Borrower's gross monthly income) x 100%

How do I calculate monthly mortgage payments?

Head over to our Mortgage Calculatorto compute your monthly mortgage instalment amount.

How much do I need to pay for Buyer Stamp Duty?

Use our free and simple BSD Calculatorto find out how much BSD tax you would need to pay.

What is Total Debt Servicing Ratio (TDSR)?

The Total Debt Servicing Ratio (TDSR) framework is introduced in Singapore so that property buyers will not borrow more than they can afford. It basically calculates the percentage of your income that can go into servicing your loan. The TDSR limit is currently 60%, which means all your debt obligations (student loans, credit card debts, car loans, personal loans, and so on), cannot exceed 60% of your income. This applies to property loans granted by all financial institutions (not just banks).

What is the home loan eligibility criteria in Singapore?

There are several criteria when it comes to applying for a home loan in Singapore, such as level of income, number of loans you’re currently servicing, credit history, as well as age.

What amount of home loan can I afford?

How much home loan you can afford is regulated by the loan-to-value ratio, also known as LTV. This defines the maximum amount of mortgage loan a bank can loan you as a percentage of the property’s value or purchase price whichever is lower. For your first property, you are allowed to borrow 75% of LTV limit for loan tenure of 30 years or less up to age 65, or 55% LTV for loan tenure of more than 30 years, or if loan extends past the age of 65.

What factors need to be considered in TDSR calculation?

There are 3 extra factors you should consider when calculating TDSR. First, banks implement a “stress test” to make sure that your repayment must still be within TDSR constraints even if interest rates rise to 3.5%. Second, if you are a self-employed individual and have variable income rather than a fixed one, your income will be reduced by 30% in the calculation. Third, for a joint application, an income-weighted average age (IWAA) of both borrowers will be used when calculating maximum loan tenure.

What should I do if I exceed the 60% TDSR?

If your monthly home loan repayment and monthly debt obligations surpass the 60% TDSR, you’ve got several options: Take the maximum loan tenure to reduce the monthly installment (MI) until you’re below the 60% mark. Focus on paying off a debt or two so you can free up the disposable monthly income to use towards your home loan repayments. Ask your bank or financial institution for an exemption, which may or may not be approved by its credit committee (only applicable to refinancing and if property is bought before June 2013). In most cases, if property is owner-occupied, for refinancing banks are willing to increase the TDSR ratio. Pledge or show of funds and net-worth to increase the assessable income within the TDSR framework formula.