Asked by Mdm. dor dor
what is the difference between total debt serving ratio and loan to value
185 views
4 Answers
Good afternoon,
Total Debt Servicing Ratio (TSDR) means your total monthly debt obligations (car loan, mortgage instalment etc) cannot exceed 60% of your monthly income.
Whereas Loan to Value refers to the max loan amount you can take as a percentage of valuation.
May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.
Warm Regards,
Ivan Ng Realtor
ERA Senior Marketing Director
ERA Top 600 Achievers in Year 2017 (Top 10%)
ERA Top 300 Achievers in 3rd Quarter 2017 (Top 5%)
SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.
Contact: (+65) 97432395
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
FB: facebook.com/ASAProp
W: ivanng10.com/clientreviews
(Client's Testimonials)
**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! ** Read More
Total Debt Servicing Ratio (TSDR) means your total monthly debt obligations (car loan, mortgage instalment etc) cannot exceed 60% of your monthly income.
Whereas Loan to Value refers to the max loan amount you can take as a percentage of valuation.
May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.
Warm Regards,
Ivan Ng Realtor
ERA Senior Marketing Director
ERA Top 600 Achievers in Year 2017 (Top 10%)
ERA Top 300 Achievers in 3rd Quarter 2017 (Top 5%)
SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.
Contact: (+65) 97432395
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
FB: facebook.com/ASAProp
W: ivanng10.com/clientreviews
(Client's Testimonials)
**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! ** Read More
Dear Sir/Mdm,
Total Debt Servicing Ratio (TDSR) affects the loan amount you will be able to take. Under the current framework, TDSR is 60% which is to say you can only use a maximum of 60% of your income to service your monthly mortgage. This is also including your other loans for example car loan and credit card loan.
Loan to Value (LTV) represents the max percentage of loan you can take. For a private property, the LTV is 75% that is to say you can borrow up to 75% of the property's valuation.
Please feel free to contact me if you have any other questions.
Regards,
Nick Tan
(M) +65 9644 4854
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
Visit my website to know me better: www.nicktan.com.sg
I was featured recently on Council for Estate Agencies (CEA) Newsletter:
http://bit.ly/CEAnews
I have written a guide on buying Residential Property:
http://bit.ly/buypropertyguide
Testimonial from Satisfied Clients
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer)
“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer)
“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”
Mr and Mrs Chan (Sold and Bought a property through Nick)
“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)
“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House) Read More
Total Debt Servicing Ratio (TDSR) affects the loan amount you will be able to take. Under the current framework, TDSR is 60% which is to say you can only use a maximum of 60% of your income to service your monthly mortgage. This is also including your other loans for example car loan and credit card loan.
Loan to Value (LTV) represents the max percentage of loan you can take. For a private property, the LTV is 75% that is to say you can borrow up to 75% of the property's valuation.
Please feel free to contact me if you have any other questions.
Regards,
Nick Tan
(M) +65 9644 4854
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
Visit my website to know me better: www.nicktan.com.sg
I was featured recently on Council for Estate Agencies (CEA) Newsletter:
http://bit.ly/CEAnews
I have written a guide on buying Residential Property:
http://bit.ly/buypropertyguide
Testimonial from Satisfied Clients
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer)
“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer)
“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”
Mr and Mrs Chan (Sold and Bought a property through Nick)
“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)
“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House) Read More
Hi,
Both restrictions are governized by MAS, to ensure citizens do not over spend on property.
1) Total Debt Servicing Ratio (TDSR): is the amount you could loan for housing needs based on your monthly income.
This is to prevent over borrowing to purchase any property in Singapore.
Current rate is 75% of your monthly income. Any other loans such as car, personal, credit card installment etc will also affect the amount you intend to borrow.
However, there are other ways to increase your loan to max, i.e. 75%.
2) Loan-To-Value (LTV): This is another restriction over purchase property, such that to ensure by spending this amount it does not affect your retirement using CPF.
Thus maximum loan is 75% on the market value of the property. This also restrict the maximum withdrawal from CPF is 75% of the purchase property.
Thus there are different percentages set for 1st, 2nd, 3rd or more property.
Both LTV & TDSR are closely related. Once the percentage of LTV is fixed, such as the latest cooling measure implemented last year on 5th July 2018; reduce from 80% to 75%.
All borrower can only loan maximum to 75% of the property price based on their salary.
TDSR might indicate you can borrow >75% of the property price based on your salary, but the bank can only provide 75% of the loan based on the property price based on LTV.
Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636 , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://www.facebook.com/Homesellerbuyer/
Note:
Any response to our answer do not reach us until we scroll through each and every queries posted daily.
The best way to get a follow up is to whatsapp or email us directly. Read More
Both restrictions are governized by MAS, to ensure citizens do not over spend on property.
1) Total Debt Servicing Ratio (TDSR): is the amount you could loan for housing needs based on your monthly income.
This is to prevent over borrowing to purchase any property in Singapore.
Current rate is 75% of your monthly income. Any other loans such as car, personal, credit card installment etc will also affect the amount you intend to borrow.
However, there are other ways to increase your loan to max, i.e. 75%.
2) Loan-To-Value (LTV): This is another restriction over purchase property, such that to ensure by spending this amount it does not affect your retirement using CPF.
Thus maximum loan is 75% on the market value of the property. This also restrict the maximum withdrawal from CPF is 75% of the purchase property.
Thus there are different percentages set for 1st, 2nd, 3rd or more property.
Both LTV & TDSR are closely related. Once the percentage of LTV is fixed, such as the latest cooling measure implemented last year on 5th July 2018; reduce from 80% to 75%.
All borrower can only loan maximum to 75% of the property price based on their salary.
TDSR might indicate you can borrow >75% of the property price based on your salary, but the bank can only provide 75% of the loan based on the property price based on LTV.
Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636 , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://www.facebook.com/Homesellerbuyer/
Note:
Any response to our answer do not reach us until we scroll through each and every queries posted daily.
The best way to get a follow up is to whatsapp or email us directly. Read More
Hi Mdm,
Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) are ratios used to determine how much you can loan, based on certain criteria like age, income, debt and liabilities etc.
Loan-to-Value (LTV) is the ceiling of which you can loan for a property purchase. LTV is now at 75% for first property loan, which means that you can only loan up to a maximum of 75% of the property purchase/valuation price. If you already have an existing property, and wish to purchase a second property whilst taking another loan, LTV would be 45%.
For example, if your TDSR allows you to loan up to max of $1m, and the property you're planning to purchase cost $1.2m, you will only be able to loan up to max of $900k (75% of $1.2m), even though your TDSR allows you up to $1m.
Another example, if your TDSR allows you to loan $1m, and the property you're planning to purchase is $2m, you will only be able to loan max $1m even though LTV allows you to loan up to $1.5m.
I am experienced and well-versed in both private and HDB resale transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.
Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305 . I will be happy to assess and share with you the possibilities for you in the current market.
Thank you.
Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More
Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) are ratios used to determine how much you can loan, based on certain criteria like age, income, debt and liabilities etc.
Loan-to-Value (LTV) is the ceiling of which you can loan for a property purchase. LTV is now at 75% for first property loan, which means that you can only loan up to a maximum of 75% of the property purchase/valuation price. If you already have an existing property, and wish to purchase a second property whilst taking another loan, LTV would be 45%.
For example, if your TDSR allows you to loan up to max of $1m, and the property you're planning to purchase cost $1.2m, you will only be able to loan up to max of $900k (75% of $1.2m), even though your TDSR allows you up to $1m.
Another example, if your TDSR allows you to loan $1m, and the property you're planning to purchase is $2m, you will only be able to loan max $1m even though LTV allows you to loan up to $1.5m.
I am experienced and well-versed in both private and HDB resale transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.
Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305 . I will be happy to assess and share with you the possibilities for you in the current market.
Thank you.
Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More