Answer
Monthly Mortgage on a $1.5M Condo — 2026
$1.5M is the sweet spot for many HDB upgraders eyeing a 3-bedroom condo. Here's exactly what it costs month-to-month, what income you need, and how much cash to prepare.
Answer: At 3.5% interest, 25-year tenure, 75% LTV → $1,125,000 loan → approximately $5,630/month. At the 4% stress test rate: $5,930/month. You need about $10,200 gross monthly income to pass TDSR (no other debts). Total cash at closing: approximately $119,600 (5% cash down $75,000 + BSD $44,600).
Monthly Payment — $1,125,000 Loan (75% of $1.5M)
25% down payment ($375,000), varying interest rates and tenure
| Interest Rate | 20 Years | 25 Years | 30 Years |
|---|---|---|---|
| 2.5% | $5,966 | $5,048 | $4,445 |
| 3.0% | $6,240 | $5,334 | $4,744 |
| 3.5% (market rate) | $6,524 | $5,630 | $5,052 |
| 4.0% (stress test) | $6,815 | $5,934 | $5,371 |
| 5.0% | $7,424 | $6,580 | $6,040 |
3.5% is the typical display rate for 2026. Banks stress-test at 4% for TDSR. Current floating rates are around 2.5–3.0%.
Total Cash at Closing
First property, Singapore Citizen, 75% LTV
| Item | Cash | CPF OA |
|---|---|---|
| Down payment — 5% (must be cash) | $75,000 | — |
| Down payment — 20% (CPF eligible) | — | $300,000 |
| BSD | — | $44,600 |
| Legal fees (estimate) | $3,500 | — |
| Valuation fee | $500 | — |
| Total | $79,000 | $344,600 |
BSD can be paid from CPF OA. ABSD (if applicable) must be in cash. If you don't have $300,000 in CPF OA, the shortfall must come from cash.
What Salary You Need (TDSR)
Based on 55% TDSR at 4% stress test, $1,125,000 loan, 25 years
| Scenario | Monthly Debt | Min Gross Income |
|---|---|---|
| No other debts | $0 | $10,790 |
| $500 credit card | $500 | $11,700 |
| $1,000 car loan | $1,000 | $12,610 |
| $1,500 car + cards | $1,500 | $13,520 |
| $2,000 all debts | $2,000 | $14,430 |
TDSR = (all monthly debt obligations) / gross monthly income ≤ 55%. Banks stress-test mortgages at 4%, not the actual rate. Joint income from co-borrowers counts.
Total Interest Over the Loan Life
$1,125,000 loan at 3.5%
| Tenure | Monthly | Total Paid | Total Interest | Interest % |
|---|---|---|---|---|
| 20 years | $6,524 | $1,565,760 | $440,760 | 39% |
| 25 years | $5,630 | $1,689,000 | $564,000 | 50% |
| 30 years | $5,052 | $1,818,720 | $693,720 | 62% |
Going from 25 to 30 years saves $578/month but costs an extra $129,720 in total interest. That's real money. Choose 30 years only if you need the cash flow breathing room.
Cash vs CPF — Monthly Payment Split
Using CPF OA to cover part of your mortgage reduces the cash you need each month. Here's the split at different income levels:
| Gross Income | CPF OA/month (23%) | Mortgage | Cash Top-up |
|---|---|---|---|
| $10,000 | $2,300 | $5,630 | $3,330 |
| $12,000 | $2,760 | $5,630 | $2,870 |
| $14,000 | $3,220 | $5,630 | $2,410 |
| $16,000 | $3,680 | $5,630 | $1,950 |
CPF OA contribution = 23% of gross salary (employee portion, age ≤55). Subject to CPF Valuation Limit. CPF used accrues 2.5% interest, refundable when you sell.
Run the numbers with your actual situation
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FAQ
What is the monthly mortgage on a $1.5M condo?
Approximately $5,630/month with 75% LTV ($1,125,000 loan), 25-year tenure at 3.5% interest. At the 4% MAS stress test rate, it’s about $5,930/month. At current floating rates around 2.7%, the payment drops to about $5,100.
How much income do I need for a $1.5M condo?
At least $10,200 gross monthly income with no other debts, based on TDSR (55% cap at 4% stress test). With a $1,000 car loan, you’d need about $12,020. Joint income from both borrowers counts.
How much cash do I need to buy a $1.5M condo?
About $119,600 total: 5% cash down payment ($75,000), BSD ($44,600), and legal fees (~$3,500). The remaining 20% down payment ($300,000) can come from CPF OA. Some buyers pay more in cash to reduce the loan.
Can I use CPF to pay the monthly mortgage on a $1.5M condo?
Yes. CPF OA can cover part or all of the monthly instalment, subject to the CPF Valuation Limit. Most people use a mix of CPF and cash. Note: CPF used for property must be refunded with 2.5% accrued interest when you sell.
Should I take a 25-year or 30-year loan for a $1.5M condo?
30 years gives lower monthly payments ($5,052 vs $5,630 at 3.5%) but costs ~$130,000 more in total interest. If you can handle $5,630/month, 25 years saves serious money. If cash flow is tight, go 30 years and make extra payments when you can.
What if interest rates go up to 5%?
At 5% on a $1,125,000 loan over 25 years, the monthly payment jumps to about $6,580. That’s $950 more per month vs 3.5%. Make sure you can handle rate increases — lock in a fixed rate for the first 2–3 years if you want certainty.
Related
Last updated Feb 2026. Rates are estimates based on current market conditions. TDSR: 55% at 4% stress test (MAS). This is a calculation, not financial advice.