Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR’s calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
What LEVR Calculates
LEVR’s affordability calculator runs four simultaneous outputs for any buyer profile:
- TDSR at current rate — total debt obligations as a percentage of gross monthly income, using the prevailing loan rate entered
- TDSR at stress-test rate — the same calculation applied at the MAS medium-term interest rate (MTIR) floor, per MAS Notice 645
- Maximum loan — the largest loan the buyer qualifies for at the 55% TDSR ceiling, given their income and existing obligations
- Available cash flow — gross monthly income minus all debt obligations minus a configurable living expense estimate, giving a real-world liquidity figure beyond the regulatory number
LEVR enforces the 55% TDSR ceiling and flags any scenario where the buyer exceeds it. It also applies the correct LTV cap for the property type, so down payment requirements are computed accurately.
Step 1: Enter Income
Income is the denominator in every TDSR calculation. Accuracy here determines whether the resulting TDSR is a reliable figure or a misleading one.
Gross monthly income
Enter the buyer’s total gross monthly income before CPF contributions and income tax. For salaried employees, this is the fixed monthly salary. Variable components (commission, bonus, overtime) must be averaged over 12 months and may be subject to a 30% haircut under MAS Notice 645 if they are not guaranteed.
Self-employed income
For self-employed buyers, banks typically average the last two years of NOA (Notice of Assessment) from IRAS. Enter the average annual income divided by 12. If the business has operated for less than two years, most banks will not assess self-employed income — flag this as a likely approval constraint.
Co-borrower income
If the buyer is applying jointly, add the co-borrower’s gross monthly income to the total. LEVR combines the two income figures and runs a single TDSR against the combined income and combined obligations. Note that adding a co-borrower also adds their existing debt obligations to the denominator.
Step 2: Input Existing Monthly Debts
TDSR counts all monthly debt obligations, not just the new mortgage. Missing an existing obligation will produce an artificially favourable TDSR. Enter each of the following where applicable:
| Obligation Type | What to Enter |
|---|---|
| Car loan / hire-purchase | Monthly instalment amount |
| Personal loan | Monthly instalment amount |
| Credit card balances | 5% of the outstanding balance per month (MAS Notice 632) |
| Student loan | Monthly instalment amount |
| Existing mortgage | Monthly repayment at the stress-test rate applied to the outstanding loan balance |
Credit card treatment: Under MAS Notice 632, banks must count 5% of the outstanding credit card balance as a monthly obligation in the TDSR computation, even if the buyer pays the minimum monthly payment only. If your buyer carries a $20,000 credit card balance, LEVR adds $1,000/month to their obligations.
Step 3: Choose Property Price / Loan Amount
Enter the target property price. LEVR automatically applies the correct Loan-to-Value (LTV) cap based on the property type selected:
| Property Type | LTV Cap (Bank Loan) | LTV Cap (HDB Concessionary Loan) |
|---|---|---|
| HDB flat | 75% | 80% |
| Private residential | 75% | N/A |
| Executive Condominium (EC) | 75% | N/A |
The LTV cap determines the minimum down payment required. At 75% LTV on a $1M property, the buyer must fund $250,000 in cash and/or CPF. LEVR computes this automatically from the price entered.
If the buyer has an existing outstanding home loan, the LTV cap reduces to 45% for the new property. Select the correct profile in LEVR to ensure the down payment figure accounts for this.
Step 4: Select Interest Rate Scenario
LEVR lets you run three rate scenarios in a single calculation:
- Current rate — the prevailing indicative rate for the property type (e.g., 3.2% for a bank loan on private property). Enter the actual rate the bank has offered if known.
- Stress-test rate — computed as max(prevailing rate + 3%, 4% MTIR floor) per MAS Notice 645. At a prevailing rate of 3.2%, the stress-test rate is max(6.2%, 4%) = 6.2%. Banks use this rate to assess TDSR for approval decisions.
- Custom rate — enter any rate to model a worst-case or alternative scenario (e.g., 7% to model a sustained high rate environment).
The stress-test rate is the rate that determines whether the bank will approve the loan. A buyer who passes TDSR at 3.2% but fails at 6.2% will not receive bank approval. Always review the stress-test column before advising a client that they qualify.
Step 5: Review TDSR Results
LEVR outputs a TDSR summary table for the three rate scenarios. Review each column:
| Rate Scenario | Monthly Repayment | TDSR | Status |
|---|---|---|---|
| Current rate (3.2%) | As calculated | As calculated | Pass / Fail vs 55% ceiling |
| Stress-test rate (6.2%) | As calculated | As calculated | Pass / Fail vs 55% ceiling — bank uses this column |
| Worst-case / custom (e.g., 7%) | As calculated | As calculated | Indicative only |
If the stress-test TDSR exceeds 55%: The buyer does not currently qualify at that property price and loan amount. Options to explore: reduce loan (larger down payment), reduce existing obligations before application, add a co-borrower, or lower the target price.
TDSR between 45% and 55% at stress-test: Technically qualifies but leaves very little buffer. Advise the client that a rate increase or unexpected debt addition could push them to the boundary. Frame this as a risk conversation, not just a number.
Step 6: Calculate Available Cash Flow
TDSR compliance is a regulatory threshold — it is not a comfortable living standard. LEVR’s cash flow section goes beyond TDSR to show the buyer’s real-world monthly position:
Available cash flow = Gross monthly income − All debt obligations (including new mortgage) − Estimated monthly living expenses
Enter a living expense estimate for the buyer’s household (food, transport, utilities, education, insurance, and discretionary spending). LEVR subtracts this from post-debt income to show how much discretionary cash remains each month.
Use this figure to anchor a realistic conversation. A buyer with 30% TDSR but $300/month remaining after debt and expenses is materially more stressed than their TDSR suggests.
Worked Example
SGD 450,000 private property (joint buyers)
- Combined gross monthly income: SGD 14,000
- Existing obligations: nil
- Down payment: SGD 112,500 (25% at 75% LTV)
- Loan amount: SGD 337,500
- Loan tenure: 25 years
| Rate Scenario | Rate | Monthly Repayment | TDSR |
|---|---|---|---|
| Current rate | 3.2% | SGD 1,593 | 17.9% |
| Stress-test rate | 6.2% | SGD 2,095 | 21.5% |
| Worst-case / custom | 7.0% | SGD 2,566 | 24.8% |
All three scenarios pass the 55% TDSR ceiling comfortably. This buyer has significant headroom. At 3.2%, they could qualify for a loan of approximately SGD 2.5M on this income profile with no existing obligations.
Agent takeaway: Run this before every buyer consultation. Two minutes with LEVR surfaces the ceiling, the stress scenario, and the monthly cash picture — giving you a factual basis for property price guidance instead of estimates.
Qualifying your buyer before the bank does is the standard that separates preparation from guesswork. LEVR runs the numbers while you focus on the conversation.
Calculator Disclaimer (Block 3): LEVR’s calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.
Source: MAS Notice 645 (Monetary Authority of Singapore — Notice on Residential Property Loans and Facilities). MAS Notice 632 (Unsecured Credit Facilities).