TDSR

Question 1

Valuation Limit (VL)

Answer 1

lower of property price or property value (based on valuation) at time of purchase.

Question 2

Loan-to-Value (LTV) Limit

Answer 2

Ratio of loan amount to property value.

Question 3

Loan Ceiling

Answer 3

• maximum quantum or amount of loan that lender is willing or is permitted to provide to borrower.
• Can be numeric limit or simple basis.

Question 4

Minimum Cash Payment (MCP)

Answer 4

• Required if the purchase is funded by housing loan from FI
• Depends on if buyer got outstanding housing loan
• Is a fixed percentage of valuation
• Must be paid in cash.
• Cannot be covered by loan or CPF funds.

Question 5

MCP: No outstanding loan

Answer 5

• 5% of VL
• 10% of VL for loan tenure >30y or extends past age of 65y

Question 6

MCP: With one or more outstanding housing loans

Answer 6

25% of VL

Question 8

Cash Over Valuation (COV)

Answer 8

• Amount of the transaction price in excess of the valuation (or Valuation Limit).
• Must be paid in cash.
• Cannot use loan or CPF

Question 9

TDSR meaning

Answer 9

Total Debt Servicing Ratio

Question 10

What is TDSR

Answer 10

MAS requires all FIs to cap TDSR at 55% of the property buyer’s income as a prudency measure.

Question 11

Why need TDSR

Answer 11

• for ppl applying for loan to buy property
• or a loan secured by property
• does not apply to companies

Question 12

TDSR is calculated when

Answer 12

• Any loan to purchase property
• Any loan secured by property
• Any refinancing of these loans
• Resi & non-resi properties