Financial Budgeting

The affordability check 

45 mins free consultation 

Over the years, the Government have introduced a series of cooling measures to prevent over leveraging with the banks. A larger amount of loan was easily approved in the past but when an economic crisis hit, many had difficulties servicing their mortgage and had to give up their properties causing the bank to face liquidity stress. 

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I felt that the system in place right now really helped reducing stress for both the banks and the borrower. Even through the Covid-19 pandemic, we don't see people struggling with their loans. In this 1 hour session, I will be sharing in depth the types of Cooling Measures that were introduced and their purpose. I will also work out the amount of loan you can take and the number of years you can loan.

Here is what to expect:
1. Determine the age, income, savings and CPF OA of the buyer(s).
2. Determine the type of property.
3. Calculate TDSR and MSR depending on type of property.
4. Derive with maximum loan and buying quantum.
5. Calculate the monthly instalment, breakdown of principle and interest.
6. Calculate downpayment amount, breakdown of cash and CPF OA usage.
7. Calculate legal fees for transaction.
8. Derive with total cash outlay and CPF OA usage.