Regulatory Alerts2020-11-06
Added
Notice 645A Computation of Total Debt Servicing Ratio for Property Loans
The Monetary Authority of Singapore issued Notice 645A to establish the mandatory formula and parameters for banks to compute the total debt servicing ratio for property loans. This regulation requires financial institutions to calculate borrowers' monthly total debt obligations and gross monthly income to assess their repayment capacity. It further specifies the limits on monthly repayment instalments for the purchase of HDB flats and executive condominiums.
Notices
Last Revised Date: 06 November 2020
Requirements for banks on computing the total debt servicing ratio (TDSR) for property loans.
Property Loans
Issued pursuant to:
Banking Act (Cap. 19) section 55
Applies to:
Full Bank (Branch)
,
Full Bank (Locally Incorporated)
,
Wholesale Bank (Branch)
,
Wholesale Bank (Locally Incorporated)
View Notice
Notice 645A Computation of Total Debt Servicing Ratio for Property Loans
(93.9 KB)
This notice applies to all banks. It sets out the formula and parameters for banks to compute the total debt servicing ratio, monthly total debt obligations and gross monthly income of borrowers. The notice also spells out the limit on monthly repayment instalments for the purchase of HDB flats and executive condominiums.
See explainers:
Total Debt Servicing Ratio for Property Loans
Rules for New Housing Loans
09 Nov 2020 MAS Notice 645A (Amendment No. 3) 2020 (99.3 KB) takes effect.
06 May 2020 MAS Notice 645A (Amendment No. 2) 2020 (121 KB) takes effect.
06 Apr 2020 MAS Notice 645A (Amendment) 2020
(254.9 KB) takes effect.
18 Feb 2020 MAS Notice 645A dated 17 Feb 2020 takes effect.