The Home Purchase Planner helps you compute a home purchase budget by considering:

 

• your Ordinary Account (OA) balance, cash savings and cash proceeds (if you sell an existing property); and 
• key financial parameters (e.g. Mortgage Servicing Ratio, loan tenure, and Loan-To-Value limit). See assumptions via this link.

The calculated budget provides a conservative estimate that helps you buy a home within your means. Here is an example: 

 

John has:

 

• $50,000 in his OA 
• $30,000 in cash

Based on his profile, John qualifies for a maximum housing loan of $400,000. With a loan-to-value limit of 75%, he technically has a budget of $532,000. 

 

However, John’s actual budget is lower because:

 

• He needs to make a minimum downpayment of 25%. 
• Assuming John uses his capital consisting of OA savings and cash of $80,000 for his downpayment, the maximum he can afford is $320,000. This is based on a loan of $240,000 covering the remaining 75% of the property price.

Therefore, the planner shows John’s purchase budget as $320,000, ensuring he buys a property within his financial means.