Regulatory Alerts2021-12-15
Added
Guidelines on the Application of Total Debt Servicing Ratio for Property Loans under MAS Notices 645, 1115, 831 and 128
The Monetary Authority of Singapore issued these guidelines to direct all financial institutions on applying the Total Debt Servicing Ratio framework to property loans. The document mandates that institutions assess borrowers' income levels and debt obligations to ensure adequate debt repayment capability for individuals, sole proprietors, and shell companies. It further outlines sound credit risk management practices, specific TDSR thresholds, calculation methodologies, and applicable exemptions for various property loan types.