Housing Loan Information
GARDEN . RIVER . LIVING
Launching April 2022
Launching April 2022
Sunday, 28 May 2023
Developer hotline
North Gaia EC Housing Loan Information
Before purchasing an Executive Condominium unit, do take some time to review the loan information below:
Mortgage Servicing Ratio (MSR)
What is the Mortgage Servicing Ratio?
- The Mortgage Servicing Ratio is a measure implemented by the Monetary Authority of Singapore, and it refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans, including the loan being applied for.
- MSR is capped at 30% of a borrower’s gross monthly income
- It applies only to housing loans for the purchase of an HDB flat or an executive condominium bought directly from a developer.
Calculating MSR
- When you take a loan from a Financial Institution, these will be taken into consideration:
- All the borrower’s property loans.
- At least 20% of the monthly debt obligation for any property loan where the borrower is a guarantor.
- A borrower’s MSR is calculated using the following formula:
- (Monthly repayment instalments for all property loans / Gross monthly Income) x 100% ≤ 30%
Total Debt Servicing Ratio (TDSR)
What is the Total Debt Servicing Ratio?
- The Total Debt Servicing Ratio is a maximum threshold set by MAS. However, FIs may grant property loans to borrowers whose TDSR exceeds the threshold on an exceptional basis, subject to enhanced credit evaluation.
- The TDSR threshold for property loans is set at a maximum of 55% of the borrower’s monthly income.
- It applies to housing loans for the purchase of private properties and executive condominiums
Calculating TDSR
- Under the TSDR guidelines, your monthly monthly debt obligations and gross monthly income will be taken into account
- A borrower’s TDSR is calculated using the following formula:
- (Borrower’s total monthly debt obligations / Borrower’s gross monthly income) x 100%
Monthly Debt Obligations
Monthly debt includes all outstanding debt obligations:
- Property-related loans, including the loan being applied for.
- Car loans.
- Student loans.
- Renovation loans.
- Credit card loans.
- Any other secured or unsecured loans, including revolving loans.
For more details, please refer to the MAS website here: Total Debt Servicing Ratio for Property Loans
How Does MSR And TDSR Apply for ECs?
- For the purchase of an Executive Condominium, Financial Institutions will calculate both the MSR and TDSR for the borrower
- The lower loan amount between MSR and TDSR will be used as the basis for disbursing the loan
- Although the percentage for TDSR is higher at 55% as compared with MSR at 30%, for borrowers with existing debt obligations, the amount that can be allocated to a property loan under TDSR can actually be lower than MSR.
- For assistance on working out your loan eligibility, please feel free to contact us
How Much Home Loan Am I Eligible For?
- The advantage of purchasing an Executive Condominium is that you can still obtain up to a 75% LTV (Loan to Value) Ratio for your bank loan, even if you are currently still servicing your HDB home loan
- Please note that the amount of loan that you are eligible for is still subject to MSR and TDSR guidelines
Loan to Value
| First Loan | Second Loan | Third Loan | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Loan Tenure | Up to 30 years | 31-35 years | Up to 30 years | 31-35 years | Up to 30 years | 31-35 years | |||
| Age | Income Weighted Average Age | ||||||||
| Up to 65 | Up to 70-75 | Up to 70-75 | Up to 65 | Up to 70-75 | Up to 70-75 | Up to 65 | Up to 70-75 | Up to 70-75 | |
| Maximum LTV Limit | 75% | 55% | 55% | 45% | 25% | 25% | 35% | 15% | 15% |
| If the borrower is a shell company or not an individual, the LTV limit is 15% | |||||||||
| Minimum Cash Downpayment | 5% | 10% | 10% | 25% | 25% | 25% | 25% | 25% | 25% |
| Guarantors / Co-borrowers | All co-borrowers must be mortgagors. Guarantors must be co-borrowers if the latter did not pass the TDSR criteria. |
||||||||
| Mortgage Servicing Ratio (MSR) (for ECs) | 30% | ||||||||
| Total Debt Servicing Ratio (TDSR) | 55% | ||||||||
| Stress Test Interest Rate | 3.5% | ||||||||
The loan-to-value (LTV) limit determines the maximum amount an individual can borrow from a financial institution (FI) for a housing loan.
LTV refers to the loan amount as a percentage of the property’s value. For example, if an individual borrows $750,000 to purchase a property valued at $1,000,000, the LTV is 75%.
It was announced on 5 July 2018 that LTV limits will be tightened as part of a package of measures to cool the property market and keep price increases in line with economic fundamentals.
LTV Limits for Shell Companies
If the borrower is a shell company or not an individual, the LTV limit is 15%.
For more information, please refer to the MAS website at Loan Tenure and Loan-To-Value Limits.