Dear Editor,

We thank Mr Ong Khin Oon for his letter, “Let banks decide on age cap for loan repayment” (The Straits Times, 20 March 2017).

Mr Ong suggested that the Monetary Authority of Singapore (MAS) should not set a 75-year old age limit on borrowers. 

MAS has not set any age limit on borrowers. Financial institutions may, however, do so based on their internal credit policies, or they may consider the age of the borrower as one of the factors in their credit assessments.

Mr Ong said that the total debt servicing ratio (TDSR) would not apply to the housing loan of a property if the loan-to-value ratio does not exceed 50 per cent.  This is not correct.

The adjustment to the TDSR rule that took effect on 11 March applies only to mortgage equity withdrawal loans, which are loans secured on existing properties. This is to help individuals to monetise the equity in properties that they already own.  The change does not apply to housing loans for the purchase of a property.

Bey Mui Leng (Ms)
Director (Corporate Communications)
Monetary Authority of Singapore