The maximum amount of home loan you can get depends on you age, loan duration and your income, your Total Debt Servicing Ratio (TDSR) and whether you have existing residential home loans. Joint borrowers are assessed using an income-weighted average age.
Calculating Age for Joint Borrowers
For joint borrowers, we will have to use their income-weighted average age as their present age. This formula calculates their average age as it relates to their ability to repay the loan:
(Borrower 1’s Age * Borrower 1’s gross monthly income / (Total of Borrower 1 and 2’s gross monthly incomes)) + (Borrower 2’s Age * Borrower 2’s gross monthly income / (Total of Borrower 1 and 2’s gross monthly incomes))
Your age 50 years old and you have a gross monthly income of $8,000. Your partner is 40 years old with a gross monthly income of $10,000.
Their income weighted average age is:
(50*$8,000 / ($8,000 + $10,000)) + (40*$10,000/($8,000 + $10,000)) = 22.22 + 22.22
LTV Limits and Minimum Downpayment for Individuals
The LTV limits for individuals change depending on the number of outstanding housing loans a borrower has.
|Outstanding housing loans||LTV limit||Minimum cash downpayment|
|None||75% or 55%|
|1||45% or 25%||25%|
|2 or more||35% or 15%||25%|
Apply the lower LTV limit if the loan tenure exceeds 30 years (or 25 years for HDB flats), or the loan period extends beyond the borrower’s age of 65 years. Refer to MAS Website for details explanation.