The property market is red-hot again with people snapping up real estate left, right and centre, so it is no surprise that inquiries from home seekers about mortgages have gone through the roof as well.
The interactive mortgage calculator at the MoneySense financial education website is just one outlet that has seen a surge of interest.
Its calculator page now attracts the site's most unique visitors as people hopeful of snagging new properties use the tool to do quick sums to see if they can afford a mortgage.
But before you check how much you need to service a home loan, you should first do this simple test, to find out the total debt servicing ratio, to see if the bank will lend you the money based on your income.
To calculate this, add all the repayments you must meet every month, such as the mortgage for the intended new home, any existing loans such as for a car and even short-term personal ones from banks.
Divide the total monthly loan repayments by your monthly income. If your intended monthly mortgage repayment plus your other debt obligations exceed 60 per cent of your income, it is a sign to look for a cheaper home or fork out more cash to reduce the loan quantum.
Even if you pass this test, heed the advice at the bottom of the MoneySense mortgage calculator: You can also save on interest paid if you opt for a shorter loan period, provided you can afford the slightly higher monthly payments.
MoneySense is the national financial education programme that aims to help Singaporeans manage their money well by making sound financial decisions on their own.
Its programmes are overseen by an executive council co-chaired by the Monetary Authority of Singapore (MAS) and the Ministry of Manpower, and comprises representatives from various government agencies.
It covers a wide range of topics that are constantly updated to advise or caution people when a new trend, like cryptocurrency, emerges.
The MAS has been advising the public since 2018 to be extremely cautious of such investments as they are not regulated by the central bank, and neither are such digital coins legal tender.
What this means is that people who still choose to buy cryptocurrency should know the risks: If they lose money, there is little the authorities can do to help them.
Opening of share trading accounts
The rise of digital investment platforms has resulted in many young people starting to dabble in stocks even at age 18, the minimum age for opening share trading accounts here.
Share investing means making a calculated and considered move to put your money in the company of your choice, with the hope that its business will flourish in the long - or even short - term.
If you have made the right picks, you can be rewarded with both annual dividends as well as an increase in the value of your stocks.
What this means is that your investment will grow together with the company, and this takes time. Don't buy shares in the hope of instant big rewards. If you punt on such shares, chances are you are dabbling in a highly speculative counter whose price can be pushed up to draw unsuspecting investors.
This was what happened in the penny stock crash in the past decade when many clueless investors bought stocks without knowing what companies they were investing in.
Yes, just like gambling, you can win if you are lucky. But you can also lose everything when such stocks are suspended or when their prices dive after it is revealed that the companies do not have a real business plan that justifies the soaring prices.
So pay heed to these two important tips from MoneySense:
Always do your due diligence before investing. Find out more about the company and its performance by reading its annual reports, corporate announcements and other disclosures.
Monitor your investments and understand the corporate actions that the listed company intends to take and how these can affect you.
Yes, investing is hard work and you should never adopt an invest-and-forget attitude by being lazy to do your homework and not keeping a close eye on your portfolio.
After all, the reason you work hard is to earn money, and so it makes absolutely no sense for you to ignore how your investment is doing.
Spotting an investment scam
This is another headline issue simply because too many people are still falling for ruses cooked up by crooks to make victims part with their money.
It is actually quite easy to avoid being conned if you just remember this simple and clear fact of life: You cannot pay someone to teach or help you to become rich instantly because there is no short cut to success.
If someone knows the secret of becoming rich instantly, why would he bother to work hard to get you, a total stranger, involved as well when he can just become rich himself, buy an island and retire there.
The truth is, his idea of becoming rich involves taking money from you and other victims.
So don't be tempted with super-high and risk-free returns. Many scams offer such empty promises to lure investors.
To protect yourself, always ask the tough questions on how the investment works, check its background and then confirm whether it is regulated by the MAS.
If it sounds too good to be true, it probably is.
The property market is red-hot again with people snapping up real estate left, right and centre, so it is no surprise that inquiries from home seekers about mortgages have gone through the roof as well.
The interactive mortgage calculator at the MoneySense financial education website is just one outlet that has seen a surge of interest.
Its calculator page now attracts the site's most unique visitors as people hopeful of snagging new properties use the tool to do quick sums to see if they can afford a mortgage.
But before you check how much you need to service a home loan, you should first do this simple test, to find out the total debt servicing ratio, to see if the bank will lend you the money based on your income.
To calculate this, add all the repayments you must meet every month, such as the mortgage for the intended new home, any existing loans such as for a car and even short-term personal ones from banks.
Divide the total monthly loan repayments by your monthly income. If your intended monthly mortgage repayment plus your other debt obligations exceed 60 per cent of your income, it is a sign to look for a cheaper home or fork out more cash to reduce the loan quantum.
Even if you pass this test, heed the advice at the bottom of the MoneySense mortgage calculator: You can also save on interest paid if you opt for a shorter loan period, provided you can afford the slightly higher monthly payments.
MoneySense is the national financial education programme that aims to help Singaporeans manage their money well by making sound financial decisions on their own.
Its programmes are overseen by an executive council co-chaired by the Monetary Authority of Singapore (MAS) and the Ministry of Manpower, and comprises representatives from various government agencies.
It covers a wide range of topics that are constantly updated to advise or caution people when a new trend, like cryptocurrency, emerges.
The MAS has been advising the public since 2018 to be extremely cautious of such investments as they are not regulated by the central bank, and neither are such digital coins legal tender.
What this means is that people who still choose to buy cryptocurrency should know the risks: If they lose money, there is little the authorities can do to help them.
Opening of share trading accounts
The rise of digital investment platforms has resulted in many young people starting to dabble in stocks even at age 18, the minimum age for opening share trading accounts here.
Share investing means making a calculated and considered move to put your money in the company of your choice, with the hope that its business will flourish in the long - or even short - term.
If you have made the right picks, you can be rewarded with both annual dividends as well as an increase in the value of your stocks.
What this means is that your investment will grow together with the company, and this takes time. Don't buy shares in the hope of instant big rewards. If you punt on such shares, chances are you are dabbling in a highly speculative counter whose price can be pushed up to draw unsuspecting investors.
This was what happened in the penny stock crash in the past decade when many clueless investors bought stocks without knowing what companies they were investing in.
Yes, just like gambling, you can win if you are lucky. But you can also lose everything when such stocks are suspended or when their prices dive after it is revealed that the companies do not have a real business plan that justifies the soaring prices.
So pay heed to these two important tips from MoneySense:
Always do your due diligence before investing. Find out more about the company and its performance by reading its annual reports, corporate announcements and other disclosures.
Monitor your investments and understand the corporate actions that the listed company intends to take and how these can affect you.
Yes, investing is hard work and you should never adopt an invest-and-forget attitude by being lazy to do your homework and not keeping a close eye on your portfolio.
After all, the reason you work hard is to earn money, and so it makes absolutely no sense for you to ignore how your investment is doing.
Spotting an investment scam
This is another headline issue simply because too many people are still falling for ruses cooked up by crooks to make victims part with their money.
It is actually quite easy to avoid being conned if you just remember this simple and clear fact of life: You cannot pay someone to teach or help you to become rich instantly because there is no short cut to success.
If someone knows the secret of becoming rich instantly, why would he bother to work hard to get you, a total stranger, involved as well when he can just become rich himself, buy an island and retire there.
The truth is, his idea of becoming rich involves taking money from you and other victims.
So don't be tempted with super-high and risk-free returns. Many scams offer such empty promises to lure investors.
To protect yourself, always ask the tough questions on how the investment works, check its background and then confirm whether it is regulated by the MAS.
If it sounds too good to be true, it probably is.