UOB launches online property loan calculator

Singapore

UNITED Overseas Bank (UOB) on Thursday launched a free online property loan calculator to help homeowners determine their total debt servicing ratio (TDSR) for mortgage loan applications.

The tool was developed after the bank found in an earlier survey that one in three homebuyers were unaware or did not understand the TDSR criteria for property loans. Under the TDSR framework, financial institutions, when granting property loans to individuals, have to ensure that their total monthly debt repayments (including car loans and credit cards) do not exceed 60 per cent of their gross monthly income.

UOB said that its TDSR calculator is the most comprehensive one in the market, covering loans for buying properties and refinancing various types properties, including private residences, HDB flats, international properties and commercial properties.

Other websites that offer TDSR calculators include findahomeloan.co and b2bbank.com. Some are paid apps such as the one on Stproperty.sg. Others, such as valueproperty.sg, are set up by real estate agencies and require contact details to be given before it releases the results.

UOB said that its calculator also suits the one in two survey respondents who said that they prefer to use online calculators to find out how much they can borrow before they submit their applications to a mortgage banker.

The calculator can evaluate the TDSR or mortgage servicing ratio (MSR) for up to four borrowers. The MSR applies to HDB flats and executive condominiums bought directly from developers, and is capped at 30 per cent of borrowers' gross monthly income.

The calculator also offers customers the option to pledge financial assets such as unit trusts, shares and bonds, and structured deposits as additional income streams for a detailed mortgage analysis.

Chia Siew Cheng, head of secured loans at UOB Group said that the calculator serves as "a convenient self-help solution" to help customers understand their personal financial situation and make informed decisions about buying or refinancing a property.

"Buying a property is a long-term commitment. When someone decides to buy a property, they should be clear about the costs and terms of their home loans," she said.

After one's TDSR or MSR is found to be within limits, customers have three options on the website: to sign up for new loans (or ask about existing ones); to request a call-back from a UOB mortgage banker; or to recalculate with new figures.

The calculator is available at www.uob.com.sg/TDSR.