Notice 831 Computation of Total Debt Servicing Ratio for Property Loans
Requirements for finance companies on computing the total debt servicing ratio (TDSR) for property loans.
These guidelines apply to all financial institutions (FIs) in Singapore. They guide FIs on applying the total debt servicing ratio (TDSR) when granting property loans. Where the borrower is an individual, sole proprietor or shell company, FIs are to consider the income level and debt obligations in assessing debt repayment capability.
The guidelines cover:
Requirements for finance companies on computing the total debt servicing ratio (TDSR) for property loans.
Requirements for banks on computing the total debt servicing ratio (TDSR) for property loans.
Requirements for merchant banks on computing the total debt servicing ratio (TDSR) for property loans.
Requirements for insurers on computing the total debt servicing ratio (TDSR) for property loans.
How to apply the total debt servicing ratio (TDSR) threshold for property loans and what is exempted from TDSR rules.
How to calculate a borrower’s total debt servicing ratio (TDSR), taking into account their monthly debt obligations and gross monthly income.
Explains the borrowers and property loans which TDSR rules apply to, as well as the exemptions from TDSR rules.
Explains requirements for financial institutions to compute the total debt servicing ratio (TDSR) of borrowers who apply for property loans.
Information paper on underwriting and lending practices of banks’ residential property loans business, including areas where underwriting and lending practices could be improved and sound practices observed during MAS’ thematic inspection in 2012.