REF: Residential

1. For properties above $360,000
   1. Take (AMT X 3%)-$5400

1. For everyone except 1st time Singaporeans

1. Industrial
2. Residential
   1. sold w/in 1 year
      1. means yr 0 to yr 1

1. AKA Conservacy fee in HDB

1. 90%
   1. of mkt value or vln
      1. whichever lower

1. 2.6%/annum
   1. 0.0021667/mth

1. installment cannot exceed 30% of buyer's income

1. shorter of
   1. a) 25 yrs
   2. b) 65yrs - average age of buyers
   3. if pty <60 yrs
      1. c) balance lease - 20yrs

1. Lowest of
   1. A) Loan ceiling = LTV X VL
      1. 90% x VL
   2. B) VL - CPF in OA - CPF Grants - Half of proceeds*
      1. If half of proceeds <$25,000
         1. use
            1. Total proceeds -$25,000
   3. c) Loan required
      1. is PVOA
         1. i
            1. 0.0021667/mth
         2. N
            1. Maximum repayment period (in mths)
         3. p
            1. MSR
2. aka principal sum

1. see table provided
   1. BTW
      1. AVG age is income weighted
         1. That means that eg. Alex (27 yrs $2000) and Bec (24 yrs $4000) The age will be calculated as [(2000/6000)x27yrs] + [(4000/6000)x24yrs] = 25 years

1. provided in Q
   1. BUT
      1. when calculating MAX loan quantum, use 3.5% or provided %, whichever is higher

1. total debt servicing ratio
   1. BY MAS
2. 60% of buyer's income
3. IMPORTANT features
   1. income weighted avg age
   2. medium term interest rate (calc max loan)
      1. For residential
         1. 3.5% or higher
      2. For non-resi
         1. 4.5 % or higher
   3. FI to discount 30% of buyer variable income
   4. Bank loan for HDB
      1. MSR of 30% to be CAPPED
         1. don't enjoy TDSR for HDB bank loan

1. Absolute at 35 years
2. loan period will be provided in Q :)

1. Amount that must be paid in cash?
   1. COV + MCP
2. Loan quantum
   1. Principal Amt aka PVAO
3. Monthly installment
   1. FVAO / N
4. Max loan quantum
   1. similar to HDB loan A) and C)
5. Borrowing costs
   1. FVOA - PVOA
6. Outstanding loan
   1. PVOA of remaining years
      1. PVOA but n = remaining yrs
7. Debt service ratio (%)
   1. borrowing cost/loan amt

Annotations:

• Please note that the purchase price MAY be lower at times

1. not covered by bank loan

1. PVOA
   1. Find PV given annuity
      1. can work backwards to find annuity given pv
2. FVOA
   1. Find FV given Annuity
3. FV = P x (1 + i)^n
4. To find when installments at end of month
   1. PVAD
      1. PVOA x (1+i)
   2. FVAD
      1. FVOA x (1+i)