Myths Busted! How to Avoid the Myths and Do the Math with Home Loan Calculators

When buying a home in Singapore, it’s easy to get caught up in half-truths and unsolicited advice that do more harm than good. From assumptions about massive down payments to beliefs that fixed interest rates are always the safest choice, these common beliefs can prevent you from making the best decisions regarding your mortgage.

In reality, doing the math instead of trusting common beliefs can go a long way! Using reliable tools like home loan calculators is one of the best ways to not only uncover facts but also plan smarter. Keep reading to discover how utilising mortgageplus’s mortgage calculator can help you make confident financing decisions.

Why Home Loan Myths Can Hurt Your Finances

Believing myths don’t just create confusion — they can cost you money. Misunderstanding how repayments work or ignoring flexible rate options can lead to paying more in the long run

That’s why separating myth from fact is crucial for a smooth sailing home financing journey. By using mortgageplus' mortgage calculator, you can see the real numbers that apply to your situation instead of relying on assumptions

Belief 1: You Always Need a Huge Down Payment

Do you need to save a massive sum before you can own a property? No! A down payment is necessary, but the actual percentage can vary. Although you need to pay 25% of the property purchase price, in some cases 5% is payable in cash and the rest can be paid from your CPF Ordinary Account.

With a home loan calculator, you can estimate exactly how much upfront payment is needed for your target property in Singapore, factoring in ratios such as loan-to-value, TDSR, and MSR.

Belief 2: Fixed Rates Are Always the Best Option

Are fixed rates always better? Some assume they guarantee a peace of mind and are a smart choice due to the stability they provide, but it’s far from the truth. Fixed rates may not always be the most cost-effective option for a home loan.

Market conditions, personal risk tolerance, and your goals should all influence your decision. One solution is using a mortgage calculator to estimate your monthly repayments and comparing the best rates to provide you with the most clarity.

Belief 3: Calculators Are Only for First-Time Homebuyers

One misconception homebuyers believe in is that mortgage calculators are only useful for first-time buyers. In reality, this is a powerful tool for any homebuyer or owner considering a property purchase, refinancing, or upgrading their houses.

By utilising a home loan calculator for Singapore home mortgages, you can simulate any scenarios, from interest rate changes to loan term adjustments, to make smarter financing decisions.

Why a Mortgage Calculator Is Your Best Friend

Take the guesswork out of your home financing by using a home loan calculator. Instead of following unreliable advice, work with numbers tailored to your income and loan terms to explore your options before speaking with lenders. This powerful tool can:

• Show accurate monthly repayment estimates.
• Highlight how interest rates affect long-term costs.
• Help compare fixed and floating rate packages side by side.
• Allow you to test different loan tenures to find a comfortable fit.

A home loan calculator isn’t just a tool — it’s your financial compass. The best way to avoid surprises down the line is to utilise it to create a realistic plan for your home financing.

Tip to Avoid Common Mistakes When Calculating Home Loans

Even the best tools need to be used correctly in order to make smarter financial decisions. Don’t make these small but costly mistakes when estimating your loans, so the calculations can truly reflect your real financial position:

• Always factor in additional costs such as stamp duty, legal fees, and insurance.
• Don’t underestimate how future interest rate changes might impact repayments.
• Revisit your calculations regularly as your financial situation evolves.
• Avoid basing decisions on ideal scenarios; prepare for a buffer in your budget.

By following these tips, you can transform your calculator results into sustainable financial plans. However, not all mortgage calculators in Singapore are the same. Smart calculators such as the ones offered by mortgageplus, offer the most accurate calculations.

How mortgageplus Can Help You Move Beyond Myths

At mortgageplus, our goal is simple — to give you clarity and confidence in your home financing journey. Our easy-to-use TDSR and mortgage calculators combined with personalised guidance from our expert advisors can help you replace uncertainty with confidence to make better decisions that fit your goals.

Cut through the myths and do the math for yourself with our calculators, then contact us for a free of charge consultation to discuss the next steps.