Equity Term Loan Calculator Singapore 2026
Cash-Out Refinancing — How Much Equity Can You Unlock, Monthly Cost & Break-Even Yield
Unlock the equity trapped in your Singapore property with an equity term loan (cash-out refinancing). As your property appreciates, the gap between market value and outstanding mortgage grows — you can borrow against this equity without selling. This calculator computes exactly how much equity you can unlock under MAS LTV limits (75% for private with no existing loans, 45% with one loan, 55% for HDB), the monthly repayment, total interest cost, and the critical break-even yield — the annual investment return your deployed capital must achieve to make the borrowing worthwhile. Use it to evaluate whether equity withdrawal for investing, renovation, or business is financially sound.
Get an updated valuation from a licensed valuer or check recent comparable transactions. The equity loan is based on MAS LTV limits applied to the market value, not the purchase price. Higher market value = more equity available.
Enter your property value, outstanding mortgage, rate, and tenure to see how much equity you can unlock under MAS LTV limits and the break-even yield for your deployed capital.
Equity Term Loan Singapore 2026 — MAS LTV Limits, Cash-Out Rules & When Equity Withdrawal Makes Sense
An equity term loan (also called cash-out refinancing) lets you borrow against the appreciated value of your property without selling it. As Singapore property prices rise, many homeowners find they are sitting on hundreds of thousands in untapped equity — the gap between the property value and the outstanding mortgage. The MAS regulates how much you can borrow through LTV (Loan-to-Value) limits. The equity loan is typically structured as a separate term loan (3–5 years to 30 years) at market interest rates. The key strategic question: can you deploy the equity at a return that exceeds the borrowing cost?
MAS LTV Limits for Equity Term Loans 2026
| Property Type | Existing Loans | Max LTV | Equity Formula |
|---|---|---|---|
| Private | 0 (only property) | 75% | MV × 75% − outstanding |
| Private | 1 existing loan | 45% | MV × 45% − outstanding |
| Private | 2+ existing loans | 35% | MV × 35% − outstanding |
| HDB | 0 (only property) | 55% | MV × 55% − outstanding |
| HDB | 1 existing loan | 25% | MV × 25% − outstanding |
Example: S$1.8M condo, S$600K outstanding, 0 other loans. Max loan = S$1.8M × 75% = S$1.35M. Equity available = S$1.35M − S$600K = S$750,000. All equity loans also subject to TDSR (55% of gross income). Seek bank approval for exact borrowable amount.
How This Equity Calculator Works — LTV, Available Equity & Break-Even
Step 1 — Enter Property and Loan Details
Enter the property type (private or HDB), number of existing property loans (determines LTV tier), current market value, and outstanding mortgage balance. The calculator applies the correct MAS LTV limit to compute the maximum loan and the available equity (max loan minus outstanding).
Step 2 — Enter Rate, Tenure and Purpose
Enter your expected interest rate (SORA + spread for variable, or fixed rate) and loan tenure. Choose the purpose — this helps frame the break-even analysis. For investment purposes, the break-even yield is what the investment must earn annually to cover the interest cost. For renovation, it reduces to a cost-of-funds calculation.
Step 3 — See Break-Even and Scenarios
The break-even yield is the annual return your deployed capital must achieve to cover the borrowing cost. The 6-scenario table shows annual gain, annual repayment cost, and net result at returns of 3%–10%. This makes it clear whether the equity withdrawal is financially justified given realistic return expectations.
3 Real Singapore Equity Loan Examples — Property Investor, REIT Portfolio & Business Capital
S$1.8M Condo, S$600K Owed — Invest
S$2.5M GCB, S$400K Owed — Business
HDB S$600K, S$0 Owed — REIT Port.
3 Expert Equity Tips — TDSR Check Before Applying, Shorter Tenure = Lower Break-Even & Refinance vs Top-Up
Run the TDSR Before Applying — Equity Loans Count Too
The equity term loan monthly repayment is included in your Total Debt Servicing Ratio (TDSR) — total monthly debt payments cannot exceed 55% of gross income. If your existing mortgage already consumes 30% of income, the equity loan repayment may push you over the limit. Example: gross income S$12,000/mo, existing mortgage S$3,500/mo (29%), TDSR headroom = S$3,100/mo max for all additional debts. An equity loan at S$4,500/mo would fail TDSR. Banks will decline the application. Check your TDSR headroom with our TDSR Calculator before applying. Solutions: reduce loan tenure (lower principal borrowing), increase income, or reduce existing debts.
Shorter Tenure Means Lower Break-Even Yield
Counterintuitively, a shorter tenure reduces the total interest paid, which lowers the break-even investment yield needed. Example: S$500K equity loan at 3.5%: over 25yr, total interest = S$244K (break-even 1.95%/yr); over 10yr, total interest = S$94K (break-even 1.88%/yr). However, shorter tenure means higher monthly repayments (S$4,940/mo for 10yr vs S$2,501/mo for 25yr). The optimal tenure is the shortest one your TDSR allows. If your target investment yields 6%/year, a 10yr loan at 3.5% produces a much better net return than a 25yr loan because less interest is consumed over the period.
Refinance the Main Mortgage Simultaneously to Potentially Lower Your Overall Rate
When taking an equity term loan, consider refinancing your main mortgage at the same time. Banks often offer better rates on the main mortgage when they are simultaneously providing the equity loan (cross-collateralisation incentive). You may save 0.1%–0.5% on the main mortgage rate while unlocking equity — an additional benefit not captured in this calculator. For example: existing main mortgage at 3.8% SORA + spread, refinanced to 3.4% while simultaneously getting equity loan at 3.5%. Total cost savings from the main mortgage rate reduction can partially offset the equity loan interest cost.
