To determine if you can afford a condo comfortably in Singapore, we'll look at a few key factors: your **loan eligibility**, **downpayment**, and **monthly commitments**.
### 1. **Loan Eligibility and Total Purchase Price**
- As a 34-year-old earning $7,000 per month, you can likely secure a housing loan of around **75% of the property's price**. Your Central Provident Fund (CPF) savings of $150,000 will also contribute towards your purchase.
- **Loan Tenure**: At 34, you can take a loan for up to 30 years, until you're 65, which maximizes affordability through lower monthly payments.
- **Mortgage Servicing Ratio (MSR)**: Banks typically allow a **TDSR (Total Debt Servicing Ratio)** of **55%** of your gross monthly income. For a $7,000 income, this means a maximum monthly mortgage repayment of around **$3,850**. Using this, a rough estimate for the maximum loan amount you could qualify for is between **$850,000 to $1 million**.
### 2. **Downpayment**
- For a private condo, you will need a **25% downpayment** (5% in cash, 20% from CPF or cash). With **$150,000 in CPF**, your total downpayment would allow you to comfortably purchase a condo in the **$600,000 to $900,000** range.
### 3. **Comfortable Price Range**
- To be conservative and ensure comfort, a purchase price of **$800,000 to $1 million** would be more feasible. With this price range:
- **Loan amount**: $600,000 to $750,000.
- **Monthly repayment** (assuming an interest rate of 3% over 30 years): Approximately **$2,500 to $3,160** per month.
Given that this would be well below your maximum TDSR limit of $3,850, this price range should allow for a comfortable buffer for other expenses and future interest rate hikes.
### Summary:
- **Price Range**: $800,000 to $1 million.
- **Downpayment**: $150,000 from CPF (with some cash buffer for fees).
- **Monthly repayment**: ~$2,500 to $3,160, which is within your comfort zone for your current income level.
This should leave you room for savings, lifestyle expenses, and any unforeseen changes in your financial situation. If you'd like to explore condos in this price range, platforms like PropertyGuru or 99.co can help you find suitable options.
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