Regulatory Alerts2021-12-15
Added · Updated
Guidelines on the Application of Total Debt Servicing Ratio for Property Loans under MAS Notices 645, 1115, 831 and 128
Financial Institutions must apply a Total Debt Servicing Ratio threshold of 55% for property loans where the relevant transaction date is on or after 16 December 2021, while maintaining a 60% threshold for transactions prior to that date. Loans exceeding these thresholds are permitted only on an exceptional basis, requiring documented justification, enhanced credit evaluation, and specific approvals from the board of directors or credit committee. Financial Institutions must also report these exceptional cases to the Monetary Authority of Singapore and may exclude existing monthly repayment instalments from TDSR computations under defined conditions involving HDB flats, Executive Condominiums, or private properties.