If youve bought a house in Singapore or are currently hunting for one, Im sure youd agree with me that theres nothing as daunting as finding a roof of your own in the country. An unplanned step, an unexpected expense can set you back on your mortgage bills. And from then on, everything goes haywire. Not many know that disasters like these can be averted with a simple tool that can help them plan their purchase. A Home loan calculator is an effective tool, which can help prospective buyers decide on the amount that they can afford to pay for the home loan without putting a strain on the available resources.

The calculator determines the amount you can afford to pay, by asking your input on three basic things; the budget or the money you want to spend on the house, your salary, and the rate of interest. These tools give a general idea about the money that you would need to allocate. There are other tools that are elaborate and allow you to determine the loan on several parameters including affordability, mortgage payment, investment, housing payment and even interest rate sensitivity. For example, if youre interested in knowing how susceptible you are to interest rate fluctuations in Singapore, all youve got to do is to enter the principal amount, the rate of interest and the number of years. Once youve sent your input, a chart that calculates the monthly payment for the period youve specified is displayed.

Key in the total home loan amount, the annual interest rate and the term of the loan and you have the total amount that youd be paying as mortgage through the mortgage calculator. Entering details such as the length of the loan, interest rate, loan amount, annual property tax, and the annual insurance amount will tell you the exact amount that you would have to partake with, to complete the loan.

For those looking to buy a property for investment purposes, but are skeptical about the return on investment, there are specialized calculators that allow people to determine the potential returns on invested capital that can be achieved with various interest rates and the down payment and tenor of the home loan. All that youve got to do is to enter the property price, the down payment, stamp duty, total cash outlay and youd be getting the expected rental income per year.

The housing loan calculator allows people to know their maximum borrowing capacity. But it makes sense to choose from a popular site.