A recent survey by UOB showed that one out of three home buyers are still not familiar with the new total debt servicing ratio (TDSR) framework.
The survey, as reported in the media, revealed the top two uncertainties of home buyers regarding the TDSR framework are how it applies to their personal situation and how the cooling measures affect their loan application.
UOB noted that there also appears to be a gap between what borrowers truly know and what they think they know.
Although around 64 percent of those surveyed indicate that they know how debt is calculated under the new framework, potential borrowers often fail to bring all relevant documents such as vehicle loans, guarantor notes and credit card statements.
Chia Siew Cheng, Head of Secured
Loans at UOB Group said: “Most of the time, home buyers bring inadequate or
incorrect documents to support their application or are not aware that
loans are granted based on an assessment of their total outstanding debt
including credit cards.”
The UOB survey also showed that experienced home buyers tend to engage a mortgage specialist to learn more about the suitable loan options and application process, while first-time home buyers are likely to do their own research online.
Conducted between March 20 and 27, the survey polled around 210 people who are planning to buy a property in the next two years or have acquired a property during the last nine months. They include Singaporeans and permanent residents (PRs) from 21 to 65 years old.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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