| End of year | Principal paid | Interest paid | Balance |
|---|
Understanding your instalment
Each monthly instalment covers that month’s interest first, and the rest reduces your loan. In the early years most of the payment is interest. That is why the table shows the balance falling slowly at first and faster later.
Why check the 4% stress rate?
MAS requires banks to assess private property loans at a minimum 4% p.a. when checking the 55% TDSR limit, even if your actual package rate is lower. If rates rise, you know your cash flow can still cope. The “income needed” figure shows the gross monthly income the bank will want to see for this loan.
New launch tip: you don’t pay the full instalment on day one
For uncompleted projects like One Chuan Grove, the bank releases the loan in stages as construction progresses. Your instalment starts small and grows over about four years. Model it with the progressive payment calculator.