The impact of the government’s latest home loan measures is expected to be small as the average Total Debt Servicing Ratio (TDSR) of banks here ranges from 40 to 50 percent, according to Maybank Kim Eng.
“As such, we do not think that there will be a significant impact to mortgage approvals at this stage. While some cooling off of property loan approvals cannot be ruled out, we expect the impact to be limited,” the research house said.
The Monetary Authority of Singapore (MAS) implemented the 60 percent TDSR last Saturday along with several other measures, including a new loan-to-valuation rule and a standardised framework to determine the TDSR.
Under the latest regulations, a borrower must also be the mortgagor of the property, while the borrower’s variable and bonus income recognition have been trimmed by 30 percent.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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