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,...
TDSR
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...
Home owners looking to refinance their properties are finding it increasingly difficult to do so against the backdrop of falling property prices, stringent definitions of what constitutes income and the tedious paperwork involved. Conservative property valuations also mean that only smaller loan amounts can be refinanced. With rising interest rates, more home owners are opting to switch from floating to...
The Total Debt Servicing Ratio (TDSR) was introduced in June 2013 to ensure financial prudence among borrowers and strengthen credit underwriting practices among banks. The ratio determines how much an individual can borrow from the banks. Under it, total monthly debt payments including home and car loans cannot exceed 60 per cent of the property buyers' income. These debt payments are wide-ranging and...