Banks say loan repayment ability still key even with easing of total debt servicing ratio

Singapore

THE government's easing of the debt ratio will give flexibility to home owners looking to monetise their property but borrowers need to think of their repayment ability, banks said on Friday.

The total debt servicing ratio (TDSR) will no longer be applied from March 11 for mortgage equity withdrawal loans that have a loan-to-value (LTV) ratio of 50 per cent and below, the government said.