HDB Loan Calculator

This file does a pretty accurate calculation of your HDB Loan, provided you key in the correct information in the blue cells. If you have not obtained your HLE, assume the full amount for the moment.

HDB LOAN CALCULATOR - DOWNLOAD

Take note that the maximum loan period is 25 years or until you are reach 65 of age, whichever is lesser.

The interest rate is based on the current concessionary rate of 2.6%. This rate is adjusted every quarterly, in January, April, July and October each year. Current HDB market interest rate is actually 3.38%

The file gives you 4 options

1. Calculate by loan period with a maximum of $40,000 (combined) parked in CPF-OA
2. Calculate by loan period without any amount parked in CPF-OA
3. Calculate by desired monthly payments with a maximum of $40,000 (combined) parked in CPF-OA
4. Calculate by desired monthly payments without any amount parked in CPF-OA.

You can choose to see either with maximum $40,000 (combined) parked in CPF-OA or without for the loan breakdown.


MAXIMUM OF $40,000 (COMBINED) IN CPF-OA

The option of having a maximum of $40,000 (combined) parked in CPF-OA is included because the first $20,000 in each individual CPF-OA earns extra interest of 1% making it a total of 3.5%, which is higher than HDB 2.6% interest rate. It means you are better off keeping that amount to earn that extra interest, if you can afford to*. Look at the calculated actual interest paid to make the comparison of having any amount parked or not.

Although the extra 1% interest goes into your Special Account and you will not be able to use it for other purpose except for retirement, it goes into meeting your Minimum Sum later on when you retire. That means, there is more of your Ordinary Account to draw out from when you reach the age of 55.

Having a maximum of $20,000 in your own CPF-OA on standby will also come in handy if you are unable to service your mortgage when there are no contributions to your CPF-OA for a period of time due to lost of income etc. The number of months that amount can help you out will be

Amount parked / monthly installment = number of months you are covered


MAXING OUT MONTHLY INSTALLMENT USING CPF-OA CONTRIBUTION

To know if you need to top up in cash on top of your monthly CPF-OA contribution to pay for your monthly installment, take note of the table below. All you need to concentrate on is the amount credited into your Ordinary Account (as highlighted in blue). If the amount is lesser than your calculated monthly installment, it means you have to top up the difference in cash.

Take note the percentage decreases as you grow older so if your income do not increase as you age, it means you have to top up more after every stage in the table. So take note if you plan to max out your monthly installment using your monthly CPF-OA contribution.

The file provides an estimate of the monthly cash top up that you may need to make.

Employee Age (Years)	Contribution Rate (for monthly wages ≥ $1,500)			Credited into
	Contribution by Employer (% of wage)	Contribution by Employee (% of wage)	Total Contribution (% of wage)	Ordinary Account (% of wage)	Special Account (% of wage)	Medisave Account (% of wage)
35 & below	16	20	36	23	6	7
Above 35-45	16	20	36	21	7	8
Above 45-50	16	20	36	19	8	9
Above 50-55	14	18.5	32.5	13.5	9.5	9.5
Above 55-60	10.5	13	23.5	12	2	9.5
Above 60-65	7	7.5	14.5	3.5	1.5	9.5
Above 65	6.5	5	11.5	1	1	9.5

*  If you are a first timer, you may not have the luxury of  maintaining any amount in your CPF-OA as it will be emptied when you apply for HDB loan.