Mortgage repayments represent the monthly payments made to your lender until you've repaid the loan capital and interest in full. These payments can vary based on factors such as the total loan amount, loan duration, and interest rate.

While mortgage repayments are typically made on a monthly basis, the reduction of your outstanding loan balance may not occur monthly. The frequency of repayment calculations depends on factors like the rest period (e.g., daily or monthly rest) and the benchmark rate (e.g., 3M SIBOR). It's advisable to clarify these details directly with your lender.

Generally, homeowners make monthly mortgage repayments for the duration of the home loan, which could span several years depending on the loan term. For instance, if you secure a 25-year loan, you'll make monthly payments for the same duration or until the loan is fully repaid. To determine what you can afford to borrow based on your income and expenses, consider using our mortgage affordability calculator.

Calculating mortgage repayments involves various factors such as the loan amount, annual interest rate, loan term, payment frequency, loan type, property type, and building status. While the formula for calculating repayments can be complex, you can simplify the process by using Real Estate Dad’s mortgage repayment calculator for an accurate estimate.

Loan tenure refers to the duration given to repay the loan and its interest. Generally, longer loan tenures result in lower monthly payments but higher overall interest costs, and vice versa. There are age restrictions on loan tenure, with a rule of thumb suggesting longer tenures for younger borrowers. In Singapore, there are maximum loan tenures for different property types, and exceeding these limits may affect your maximum loan amount.

In Singapore, there are two primary types of home loans: HDB loans and bank loans. HDB loans are exclusive to HDB flat purchases, offering fixed interest rates pegged slightly higher than the CPF OA rate. Bank loans, provided by private financial institutions, typically offer lower interest rates and more flexible eligibility criteria. Bank loans come in fixed-rate and floating-rate packages, each with its own features and considerations.

Mortgage repayments can be made through CPF or your bank account. For CPF payments, set up automated deductions, while for bank payments, options include automated GIRO transfers, manual bank transfers, AXS or SAM machines, or credit card payments (with caution). Additionally, consider making lump sum prepayments within the limits of your financial situation and contract terms to accelerate repayment.