Guidelines on the Application of Total Debt Servicing Ratio for Property Loans under MAS Notices 645, 1115, 831 and 128
Guidelines for all financial institutions on how to apply the total debt servicing ratio (TDSR) to property loans.
The total debt servicing ratio (TDSR) is a maximum threshold set by MAS. However, FIs may grant property loans to borrowers whose TDSR exceeds the threshold on an exceptional basis, subject to enhanced credit evaluation.
Property loans can be large, long-term liabilities for most individuals and households. TDSR limits ensure that borrowers are not over-leveraged for property purchases.
TDSR helps to:
It also complements the existing loan-to-value (LTV) limits on property purchases.