Parliamentary Replies
 Published Date: 11 January 2022

Reply to Parliamentary Question on Annual Number and Proportion of HDB and Private Property Flat Buyers with Total Debt Servicing Ratio of above 55%

QUESTION NO 1432

NOTICE PAPER 907 OF 2022

FOR WRITTEN ANSWER

Date: For Parliament Sitting on 11 January 2022

Name and Constituency of Member of Parliament
 
Mr Chua Kheng Wee Louis, MP, Sengkang GRC

Question:

To ask the Prime Minister since 2013, what is the annual number and proportion of HDB and private property flat buyers who had a total debt servicing ratio of above 55%. 

Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:

1 The Total Debt Servicing Ratio (TDSR) threshold was adjusted from 60% to 55% as part of the package of cooling measures which took effect on 16 December 2021 to promote a stable and sustainable property market. The intent of the tightened TDSR threshold is to help moderate demand, especially in the private property market, and encourage financial prudence among home buyers. The TDSR framework only applies to loans granted by financial institutions (FIs), including those extended to HDB flat buyers. 

2 The number and proportion of private housing and HDB flat buyers who had a TDSR of above 55% are shown in Table 1. Only 3% of HDB flat buyers taking up a mortgage loan from FIs in 2020 have TDSRs of above 55%.  However, about two fifths of those borrowing to purchase private property, which includes those doing so for investment purposes as well as owner-occupiers, have TDSRs of above 55%.  The new TDSR threshold will nevertheless encourage a significant number of prospective private property buyers to right-size their intended purchases and mortgages and will enable them to better service their debt obligations particularly as interest rates rise in future. 

Table 1: TDSR statistics (2014 to 2021)[1]

Private housing[2] HDB
Total No. of borrowers with TDSR above 55%
 Share of borrowers with TDSR above 55%
 Total No. of borrowers with TDSR above 55%
 Share of borrowers with TDSR above 55%
2014[3] 11,370 3,550 31%
 7,680 360 5%
2015 13,010
 4,210 32%
 9,560
 470 5%
2016 14,140
 4,810 34%
 8,190
 480 6%
2017 20,620 8,070 39%
 9,800 590 6%
2018 17,890
 7,210 40%
 9,410 490 5%
2019 14,240 5,020 35%
 7,760
 210 3%
2020 17,570
 6,400 36%
 8,980
 240 3%
2021[4] 25,650
 10,570
 41%
 12,340
 350 3%

Notes:
[1] Based on MAS’ survey of housing loans for selected Financial Institutions, which account for about 90% of total new housing loans extended by the industry.
[2] The TDSR statistics of borrowers purchasing private housing include investors, besides owner occupiers.
[3] The TDSR framework was introduced on 28 June 2013. To allow for annual comparison, data for 2013 has been excluded.
[4] Figures for 2021 refer to the latest available data i.e. January – November 2021.

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