Property seekers who want to determine their total debt servicing ratio (TDSR) for mortgage loan applications can make use of a free online property loan calculator launched by United Overseas Bank (UOB).
The new TDSR calculator covers loans to purchase and to refinance for all property types, including private homes, HDB flats, commercial spaces and overseas properties.
The tool is expected to benefit potential buyers since one in three buyers are unaware or do not understand the TDSR criteria for property loans, according to a UOB survey done in March 2014.
Under the Monetary Authority of Singapore’s (MAS) TDSR framework, financial institutions can only offer loans to customers with a TDSR of 60 percent or lower.
Chia Siew Cheng, Head of Secured Loans, UOB Group said: “Our aim is to make it easier for our customers to understand their personal financial situation and for them to be able to make informed decisions about purchasing or refinancing a property.”
UOB noted that one in two survey respondents prefer to use online calculators to find out how much they can borrow before they send their applications to a mortgage banker.
The loan calculator can evaluate the TDSR or mortgage servicing ratio (MSR) for up to four borrowers and lets customers pledge their financial assets as additional income streams for detailed mortgage analysis.
“Buying a property is a long-term commitment. When someone decides to buy a property, they should be clear about the costs and terms of their home loans. They should also set aside sufficient funds to manage potential rising interest rates and other unforeseen circumstances,” added Chia.
Results from the calculator are displayed onscreen without requiring customers to leave their contact details on the website. The service is available at: www.uob.com.sg/TDSR
Image: UOB bank branch. (Photo by UOB)
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
