The Monetary Authority of Singapore (MAS) said on Thursday (Sep 1) that it is fine-tuning the refinancing rules under the Total Debt Servicing Ratio (TDSR) framework to allow borrowers more flexibility in managing their debt obligations. The move was in response to feedback from some borrowers who are unable to refinance existing property loans owing to the application of the 60 per cent TDSR threshold,...
Refinance
The Monetary Authority of Singapore’s recent fine-tuning of refinancing rules relating to the total debt servicing ratio (TDSR) governing property loans is a strong nudge towards deleveraging. Stretched borrowers who hold investment properties will have to think about actively managing down their debt, especially as rental income is under pressure and economic growth is easing. Far from stimulating...
THE Monetary Authority of Singapore (MAS) on Thursday refined rules behind the total debt servicing ratio (TDSR) framework that would allow overleveraged borrowers to refinance their housing loans, subject to a prescribed debt restructuring plan. "The refinements... do not represent a relaxation of property market cooling measures," the MAS said in a press statement, noting that these would allow...
The current low interest rate environment has led to a trend of home buyers refinancing their loans to take advantage of promotional rates. Most analysts agree that it may no longer be attractive for investors with longer loan terms to do so, given the 35-year cap on new home loans. Most home buyers refinance their mortgages in the third or fourth year of their loan repayment period. This as interest...
Should you join the crowd? If you have top-notch credit, and expect to stay in your home for several years, refinancing may make financial sense. You probably won't have any difficulty getting a loan, provided you have adequate income that you can document. But for everyone else, the calculations have become increasingly complicated. And you're unlikely to qualify for the lowest advertised...
Industry watchers expect more home owners to consider refinancing their mortgage loans as interest rates look set to dip further. In fact, mortgage and financial planning firm SingCapital has seen a three-fold jump in enquiries in the last two months. Property agents are also getting a crash course in mortgage planning, including answering questions about refinancing of home loans. This occurs when...