Income Weighted Average Age Calculator
Income Weighted Average Age Calculator, IWAA.
The Calculator below will help you to Calculate IWAA , when more than one Co- borrower come into the scene to purchase Property
Income Weighted Average Age Calculator
How Many Applicants Joint Buying The Property
IWAA Guideline
To Understand what is IWAA. First we will need to Understand what is what is LTV . LTV Ratio will determine how much one can borrow when purchasing a Property.
A LTV Ratio of 80% means that you will be able to borrow 80% of the total Value of the Property Price.
LTV Ratio are affected by age and the Loan Tenure
Scenario that will cause LTV Ratio to Drop 55%
(1) Loan Exceeding 30 Years ( Maximum Loan Year is 35 Years)
(3) Age + Loan Tenure exceed 65
How to Counter when LTV Ratio Drop 55%
To counter act this Scenario , Individual Buyer can bring in a Co -Borrower.
If the Individual Buyer age and the Co borrower Age are the same bank will still use LTV Ratio to Calculate
But
If the Individual Buyer age and the Co Borrower Age are difference. Bank will use IWAA to calculate
IWAA Fomulae is as below
IWAA = (Borrower A Monthly Income x age of borrower A) + ( Borrower B Monthly Income x age of Borrower B) / Borrower Total Monthly Income
Example
Borrower A Age = 35
Borrower A Monthly Income = S$4000
Borrower B Age = 30
Borrower B Monthly Income = S$3000
IWAA = ( S$4000 x 35) + ( 30 xS$3000) / 7000
IWAA = 33
Loan Tenure = 65- 33 =32
