TSDR Rules Fine-Tuned For Refinacing

Fine-Tuning Of TSDR Rules For Refinancing Of Existing Property Loans

The Monetary Authority of Singapore has announced that the Total Debt Servicing Ratio (TDSR) will be fine-tuned from 1st September 2016. This fine-tuning will only apply to the refinancing of current property loans and does not affect new property loans.

In summary here are the changes

For Refinancing Of Owner-Occupied Housing Loans
(Previous Ruling)
-Only properties bought before TDSR ruling (28th June 2013) are exempted from the TDSR framework
(Ruling from 1st Sept 2016)
-Properties bought before and after TDSR ruling are exempted from the TDSR framework

For Refinancing of Investment Housing Loans
(Previous Ruling)
-Only properties bought before TDSR ruling (28th June 2013) are exempted from the TDSR framework provided there is a commitment to a debt reduction plan.
(Ruling from 1st Sept 2016)
-Properties bought before and after TDSR ruling are exempted from TDSR framework provided there is a commitment to a debt reduction plan. The plan must repay at least 3 % of the outstanding balance within a time frame of not more than 3 years. Must also fulfill credit assessment.

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