Published Date: 05 July 2018
Loan Tenure Cap
The maximum duration for a refinanced housing loan is:
- HDB flats: 30 years – X
- Non-HDB properties: 35 years – X
Where X = number of years that have run since the first housing loan was first disbursed for the residential property being refinanced.
There is no regulatory LTV limit on refinanced housing loans. FIs can grant up to the full amount outstanding, as long as the borrower meets the FI's credit assessment criteria.
Borrower-Mortgagor and Guarantor-Borrower Requirements
This rule applies, unless the Option to Purchase for the property was granted before 29 June 2013.
Whether MSR or TDSR is needed
Depending on the type of property, FIs may be required to compute or apply mortgage servicing ratio (MSR) or total debt servicing ratio (TDSR) to the refinanced loan.
|Type of property||Is MSR/TDSR required?|
|Owner-occupied||No, but the borrower must still fulfil the FI’s credit assessment criteria.|
Yes, unless the borrower meets both these criteria: