What is the difference between the Prime-Rate and the HIBOR-Rate when using the calculator?
Either choosing the Prime-Rate or HIBOR-Rate, you only need to enter the annual interest rate and the repayment terms for getting the total monthly mortgage repayment amount.
Does your mortgage plan require Mortgage Insurance Programme (“MIP”)?
MoneySmart’s calculator tells whether you need a Mortgage Insurance Programme (“MIP”) based on your LTV, which your MIP fees are dependent on years of term, mortgage loan amount, and payment method.
How to calculate mortgage stress-testing?
Mortgage applicants must go through a stress-testing on income level to the DSR (Debt Servicing Ratio) , which is rate+3% on top to your DSR level not exceed 60% of your monthly income. The DSR and the DSR-under-stress-testing-level should be less than 45% and 55% respectively if your mortgage LTV is over 80%.
Does your mortgage have cash rebate excess of 1% of the loan amount?
The cash rebate is directly duduced from the residential mortgage when the LTV excesses 1% of the mortgage.