Monthly debt includes all outstanding debt obligations:
For more details, please refer to the MAS website here: Total Debt Servicing Ratio for Property Loans
|First Loan||Second Loan||Third Loan|
|Loan Tenure||Up to 30 years||31-35 years||Up to 30 years||31-35 years||Up to 30 years||31-35 years|
|Age||Income Weighted Average Age|
|Up to 65||Up to 70-75||Up to 70-75||Up to 65||Up to 70-75||Up to 70-75||Up to 65||Up to 70-75||Up to 70-75|
|Maximum LTV Limit||75%||55%||55%||45%||25%||25%||35%||15%||15%|
|If the borrower is a shell company or not an individual, the LTV limit is 15%|
|Minimum Cash Downpayment||5%||10%||10%||25%||25%||25%||25%||25%||25%|
|Guarantors / Co-borrowers||All co-borrowers must be mortgagors.
Guarantors must be co-borrowers if the latter did not pass the TDSR criteria.
|Mortgage Servicing Ratio (MSR) (for ECs)||30%|
|Total Debt Servicing Ratio (TDSR)||60%|
|Stress Test Interest Rate||3.5%|
The loan-to-value (LTV) limit determines the maximum amount an individual can borrow from a financial institution (FI) for a housing loan.
LTV refers to the loan amount as a percentage of the property’s value. For example, if an individual borrows $750,000 to purchase a property valued at $1,000,000, the LTV is 75%.
It was announced on 5 July 2018 that LTV limits will be tightened as part of a package of measures to cool the property market and keep price increases in line with economic fundamentals.