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.
Guidelines
Published Date: 15 December 2021
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.
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Guidelines on the Application of Total Debt Servicing Ratio for Property Loans under MAS Notices 645, 1115, 831 and 128
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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:
Sound practices in managing their credit risk.
TDSR threshold.
Debt obligations and repayment ability.
5 Jul 2018 Previous version last revised on 5 July 2018 (556.9 KB) [Cancelled]
10 Mar 2017 Previous version last revised on 10 March 2017 (354.3 KB) [Cancelled]
01 Sep 2016 Previous version last revised on 01 September 2016 (354.5 KB) [Cancelled]
10 Feb 2014 Previous version last revised on 10 February 2014 (340.7 KB) [Cancelled]
Requirements for finance companies 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.
Requirements for banks 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.