Number-crunching 101

Before buying a home, do your sums with these easy-to-use online tools

 SITI ROHANI

YOU are completely bowled over by your dream home and ready to commit to a purchase. But instead of making a rash decision, it pays to do some quick calculations using online resources. Here is a quick guide:

CHECK YOUR LEGAL DEBT LIMIT

What to use: Total Debt Servicing Ratio (TDSR) calculator

This helps you figure out how much you can put towards your monthly loan repayment after taking into account your debt. Input your monthly fixed income, variable income such as annual bonuses, as well as current debt obligations such as car loans and credit card bills.

According to current regulations, your monthly home loan repayments and all your debt should not exceed 60 per cent of your gross monthly income.

DETERMINE YOUR MONTHLY HOME LOAN REPAYMENT AMOUNT

What to use: MoneySense mortgage loan calculator

This tool works out your monthly home loan repayments. Key in your loan amount, the loan period and the interest rate per annum and, voila, you get an estimate of your monthly repayment amount.

THE AFFORDABILITY OF YOUR HOME

What to use: Greyloft Affordability calculator

Fill in details such as your gross income, desired loan tenure and the type of property you are after. The calculator gives you the maximum price to consider for a property, as well as the size of the loan and deposit you will need, along with the fees and duties involved.

HOW MUCH DOWN PAYMENT TO MAKE

What to use: Downpayment calculator

To buy a property, you need to make a downpayment. You can figure out the amount with this tool, which gives you a ballpark figure based on the cost of your home and the amount of available cash you have.

HISTORICAL SALES DATA OF A PARTICULAR UNIT

What to use: Property tracker

Discover the historical sale and rental value data of the property you are eyeing. The details of listings and transactions in the same neighbourhood are also useful as they let you know how much similar units are going for. Register for the free service, then key in the address you are looking at.

FAIR VALUATION OF A PROPERTY

What to use: Valuation tool

Before making an offer on a unit you like, find out the fair value of the property to decide how high or low you want to go. Just key in the address of the unit. The tool uses many of the principles involved in a formal appraisal.

WHAT TO PAY IF YOUR INTEREST RATE CHANGES

What to use: Interest rate and loan term sensitivity calculator

The interest rate on your home loan is likely to change during your tenure. To cover any spikes, key in your loan amount. The calculator draws up a table to show you the different monthly payments to make if your interest rate or loan term changes.