With the use of a mortgage calculator, you can quickly calculate your monthly mortgage payments by entering the price of your home, the loan amount, the interest rate, and the length of the loan. Just enter these figures, and the calculator will provide your projected monthly payments, providing you with a comprehensive picture of your financial situation. Before agreeing to a mortgage, this tool is particularly helpful for budgeting and comparing loan possibilities.
Formula and computation for mortgage payments in 2025
The principal, rate of interest, and loan tenure are all taken into account by the typical loan repayment calculation used by the mortgage calculator. This is a condensed form of the formula:
[ r(1 + r)^n ] = M / [ (1 + r)^n – 1 ]
Where:
M is the monthly payback amount.
P is the principal amount of the loan.
R is the monthly interest rate calculated by dividing the annual rate by 12.
n = Total number of payments (months of loan tenure)
This computation gives you a better understanding of your loan structure by allowing you to see how your payments are divided between principal and interest.
What is the repayment of a mortgage?
The term “mortgage repayment” describes the regular monthly instalments you make to pay back your mortgage debt over time. A percentage of the loan principal and interest is paid off with each payment; as more principal is paid off over time, the proportion changes. Early repayments usually concentrate more on interest, whereas subsequent payments mostly lower the principal.
Factors influencing the amount of your mortgage payment
Your mortgage payment may be impacted by several factors, such as:
- Interest rate: Monthly payments are increased by an additional interest rate and decreased by a lower rate.
- Longer loan terms result in lower monthly payments but higher total interest paid; shorter loan terms have the opposite effect.
- Down payment: Lower monthly repayments result from a higher down payment since it lowers the loan principal.
- Loan type: While floating-rate loans can fluctuate according to market rates, fixed-rate loans provide steady payments.
Singapore mortgage rates for 2025
The bank, length of loan, and type of loan (fixed or variable rate) all affect mortgage rates in Singapore. While floating rates might change depending on the Singapore Overnight Rate Average (SORA), fixed rates often offer payment stability. Use our mortgage loan calculator to see how your repayments will change with different rates.
How to submit a mortgage application
In Singapore, requesting a mortgage usually entails the following steps:
- Establish your spending limit. To see how much you can afford, use our mortgage calculator.
- Compare mortgage rates: To identify the ideal choice, look into several lenders and rates.
- Get the paperwork ready. Collect necessary records, such as proof of identity, credit history, and income statements.
- Send in your application. Apply by submitting the necessary information through a bank or financial institution.
- Examine the loan offer. After it has been accepted, thoroughly go over the terms to make sure they fit your demands and budget.
You can also handle this process more skilfully by speaking with a mortgage consultant.
A mortgage consultant can provide expert advice and guidance throughout the entire process, helping you make informed decisions. They can also assist in negotiating better terms and rates with lenders, ultimately saving you money in the long run.
A mortgage consultant can also help you understand the various types of loans available and determine which option is best suited for your financial situation. Additionally, they can offer personalized recommendations based on your specific needs and goals to ensure you secure the most favourable terms possible.
