HDB & EC
 

Purchase Planning

Step 1: Derive Your maximum loan Borrowing Capacity. 

 

There are TWO key numbers to determine the maximum loan amount:

 

a) MSR (Mortgage Servicing Ratio): The *new mortgage repayment amount should not exceed 30% of your combine income.  (*based on 3.5% stress test interest rate, and Maximum till 65 years old loan tenure). 

 

b) TDSR (Total-debt-servicing-ratio): The new mortgage repayment & your other existing loan monthly commitment should not exceed 60% of your combine income.    

 

Once you know your maximum loan borrowing capacity, you can always work backward to derive your budget for new HDB. 

save your time & effort. Let MxRICH calculate for you. 

Steps

Derive Your 
Maximum Loan 
Borrowing Capacity

Step 1

Apply for
In-principle Approval from at least 1 bank

Step 2

save your time & effort. Let MxRICH calculate for you. 

save your time & effort. Let MxRICH assist you.

Step 2: Apply for IPA (In-principle-Approval)

 

It is an important step. With a written IPA from bank will give you a peace of mind for securing a mortgage and avoid unnecessary lost of booking fee. We always ask our client do not underestimate this step especially under stringent regulation and check in bank. 

 

We will recommend you a few bank packages based on your criteria, and assist you on the documentation and follow up with respective banker. 

 

Normally, IPA only last for 1 month. Any annoucement of new regulation, IPA will always become obselete.