everything you need to know about mas total debt servicing framework
TRANSCRIPT
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EVERYTHING YOU NEED TO KNOW ABOUT MAS
TOTAL DEBT SERVICING FRAMEWORK
+By Sean Lim
Founder of FindaHomeLoan.co
Trusted by clients, Quoted in media
+About Us
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Top referrer of Standard Chartered (Singapore) Limited in 2013
Your mortgage partner for property loans in Singapore, Australia, UK,
Japan and many countries
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+Total Debt Servicing Ratio (TDSR)
Framework
The Monetary Authority of
Singapore introduced a
TDSR framework for property
loans.
It prescribes a methodology
for financial institutions (FIs)
in computing the TDSR.
+Total Debt Obligations
• All debts will be checked and declared during the property loan application.
• No more guess-work or rounding down of liabilities.
+Medium-Term Interest Rate
• FIs will now use 3.5% as the interest rate to assess your borrowing capability for residential properties.
• It will not be based on the
teaser rates.
+Haircut on Variable Income
• Variable income such as bonus, commission will now be recognized at 70% of its value. This is a 30% haircut.
+Haircut on Financial Assets
• Financial assets such as cash, stocks, deposits will now be recognized between 0-70% of its value.
• It depends on the pledged status and asset types.
+TDSR Threshold
• After including Total Debt Obligations, applying a medium-term interest rate of 3.5% and haircut on variable income or assets, your total outstanding debt cannot exceed 60% of monthly gross income
+Income-Weighted Average Age
• Average age of all borrowers will be income-weighted.
• Age will tilt towards the one earning more income.
+Borrowers
• All borrowers must be mortgagors.
• If a borrower has no property prior, this change means you will be subjected to the LTV limits and effect of ABSD in subsequent purchases.
+Guarantors
• Guarantors will now be treated as borrowers.
• If a guarantor has no property prior, this change means you will be subjected to the LTV limits and effect of ABSD in subsequent purchases.
+Seeking Advise
• FindaHomeLoan.co is a leading home loan comparison portal in Singapore.
• Click here to compare and contact us.
+Visit Us
• Web : http://www.FindaHomeLoan.co
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THIS IS BROUGHT TO YOU BY FINDAHOMELOAN.CO,
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