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Technology  13, Jan 2014

This calculator tells you right away if you qualify for a housing loan


New measures set by Monetary Authority of Singapore can be confusing for home buyers. SmartLoans’s new service might solve their woes

In response to the Total Debt Servicing Ratio (TDSR) measures introduced by Monetary Authority of Singapore (MAS) on June 29, 2013, local loan comparison site SmartLoans.sg has launched a new web product called Loan Affordability Calculator.

TDSR, to put it simply, makes sure that borrowers looking to financial institutions for a loan aren’t “over-leveraged”. This is does by calculating the percentage of the income used for servicing the debt. Currently, it cannot go over 60 per cent – a financial institute cannot allow over it. An official press release noted, “This means your housing loan repayments, after adding all your repayment obligations (student loans, credit card debts, car loans, personal loans, etc.), cannot exceed 60 per cent of your income.”

The newly launched Loan Affordability Calculator aims to help home buyers know within minutes whether they qualify for a loan. At present, potential home buyers have to blaze through a long trail of preparing documents and wait two to four weeks in order to get an ‘In-principle approval’ from banks. Not to forget, the confusion that the new changes have caused among buyers.

Read also: A year in, and short-term rental is still illegal in Singapore

Vinod Nair, CEO, SmartLoans.sg, said, “The SmartLoans Loan Affordability Calculator removes much of the frustration by automatically computing the home buyer’s true home affordability, taking into account all existing MAS regulations. We believe this will help users make smarter financial decisions confidently.”

The calculator has been programmed to adhere to the current TDSR framework and other regulations, and will compute all other costs such as stamp duty and legal or valuation fees.

Access to the calculator costs S$9.99 (US$7.90) for 14 days of unlimited use. Furthermore, users can also download a customised report which explains the effects of the TDSR framework, and other relevant financing regulations on their home buying process.

Elaine Huang

Elaine Huang

Elaine is a fervent believer that if there ever is a zombie apocalypse, we will all be snapping away at them with our phones and posting them onto Instagram. A Mass Communication graduate of Ngee Ann Polytechnic's School of Film and Media Studies, she enjoys writing about technology and entrepreneurs. When not hashtagging her way through all sorts of trouble, Elaine is probably contemplating how to write in the third person.

  • Mike Alberto

    I am Mrs.Sandra Bents from Canada, God has bless me with two kids and a loving husband, I promise to share this Testimony because of God favor in my life,2months ago I was in desperate need of money so I thought of having a loan then I ran into wrong hands who claimed to be a loan lender not knowing he was a scam. he collected 2,000USD from me and refuse to email me since. then I was confuse, but God came to my rescue, one faithful day I went to church after the service I share idea with a friend and she introduce me to YOUNG LEE LOAN FIRM ., she said she was given 50,000USD by MR YOUNG LEE , THE MANAGING DIRECTOR OF YOUNG LEE LOAN FIRM. so I collected his email Address ,he told me the roles and regulation and I followed, then after processing of the Documents, he gave me my loan of 30,000POUNDS .you can contact him on via email : (youngleeloanfirm@yahoo.com.sg) I am sure he will help you.

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