Singapore TDSR relaxed for mortgage equity withdrawal loans
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THE Total Debt Servicing Ratio (TDSR) will no longer be applied starting March 11 for mortgage equity withdrawal loans that have a loan-to-value (LTV) ratio of 50 per cent and below.
Announcing this new move on Friday, the Monetary Authority of Singapore (MAS), together with the Ministries of Finance and National Development said in a joint statement that the current set of property market measures "remain necessary to promote a sustainable residential property market and financial prudence among households".
Current Additional Buyers' Stamp Duties and LTV limits will remain.
With regard to the TDSR, MAS said that borrowers have given feedback that the current TDSR framework has limited their flexibility in monetising their properties in their retirement years.
It currently states that property loans extended by financial institutions should not exceed a TDSR threshold of 60 per cent.
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