MAS Broadens Exemption from TSDR Threshold for Refinancing

MAS Broadens Exemption from TSDR Threshold for Refinancing of
A) Owner-Occupied Resident
B) Investment property

A) Owner-Occupied Resident
Refinancing exempted from TDSR/MSR provided he meets the following conditions:
1. Owner-Occupy
2. OTP granted
a. for HDB 12/1/2013
b. for private 29/6/2013
c. for EC 10/12/2013
*** similiar concession also applies to loan tenures

B) Investment Property - intended to ease investors immediate debt burden
A transition period from today until 30 June 2017, a borrower can refinance his investment property loans above TDSR, provided he meets the following conditions:

(a) the OTP of the property was granted before 29 June 2013;

(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and

© the borrower fulfils the FI’s credit assessment.

Love Compassion

(10-02-2014, 07:18 PM)chialc Wrote: MAS Broadens Exemption from TSDR Threshold for Refinancing of
A) Owner-Occupied Resident
B) Investment property

A) Owner-Occupied Resident
Refinancing exempted from TDSR/MSR provided he meets the following conditions:
1. Owner-Occupy
2. OTP granted
a. for HDB 12/1/2013
b. for private 29/6/2013
c. for EC 10/12/2013
*** similiar concession also applies to loan tenures

B) Investment Property - intended to ease investors immediate debt burden
A transition period from today until 30 June 2017, a borrower can refinance his investment property loans above TDSR, provided he meets the following conditions:

(a) the OTP of the property was granted before 29 June 2013;

(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and

© the borrower fulfils the FI’s credit assessment.

Love Compassion

For (b), basically banks will get the borrowers to top up or cut debt until below 60% TDSR.

New properties are subjected to TDSR.

This exemption also means TDSR are here to stay as a long term policy. Which they already said it is.
Not rollback of this policy, as what the developers and their lobby wanted.

opmi,
Complete exemption for A).

B) b) is for purely investment property that's not owner occupied.




A Life not Reflected is a Life not Worth Living.

quite hard to understand..anyway TDSR at 60% is quite a high generous ceiling..last time got statistics show only a small % breached this threshold..so 60% tdsr is a white elephant. I think the killer is the MSR instead

(11-02-2014, 12:12 AM)pianist Wrote: TDSR at 60% is quite a high generous ceiling..
I think the killer is the MSR instead

Hi pianist,
Very sharp!
MSR 30% for HDB and 35% for EC
TDSR is at 60%

Question is will TDSR go up aka more relax to says 80%?
or
Do you think TDSR is going to be tighten to says 40%?

We all know that TDSR is here to stay.
Are you going to wait for MAS to tighten TDSR?
Are you still able to afford your dream when TDSR is at says 40%?

Love Compassion

The biggest impact to me is that to refinance my mortgage loan with the existing remaining tenors. Question is that whether I can refinance only from the same bank or can be with another bank? I have wrote an email to a DBS banker on this and waiting for her reply.

I think MAS is referring to refinancing of mortgage to a different bank.

If you are doing it in the same bank, that's repricing. Since repricing is in the same bank, I don't see the need for the bank to recalculate your MSR/TDSR since you are already servicing the loan. As long as your credit is good with the bank, repricing shouldn't be an issue.

(11-02-2014, 10:42 AM)sunrocker Wrote: I think MAS is referring to refinancing of mortgage to a different bank.

If you are doing it in the same bank, that's repricing. Since repricing is in the same bank, I don't see the need for the bank to recalculate your MSR/TDSR since you are already servicing the loan. As long as your credit is good with the bank, repricing shouldn't be an issue.

I guess the term "refinance" is used as a generic term by MAS to cover both repricing from the same bank and refinancing from another bank, as it only makes sense to access ones financial again for a new loan. In any case, it is a good news to me as my current loan is due to repricing/refinancing by end of this year. Will have to talk to the bank for more details.

I just found out under the definitions for TDSR and MSR, assets such as stocks and unit trusts can contribute to the Gross Monthly Income.

e.g.

$1m worth of stocks will add

$1,000,000 x 30% / 48 months = $6,250 per month

to the gross income.

(11-02-2014, 12:35 PM)cif5000 Wrote: I just found out under the definitions for TDSR and MSR, assets such as stocks and unit trusts can contribute to the Gross Monthly Income.

e.g.

$1m worth of stocks will add

$1,000,000 x 30% / 48 months = $6,250 per month

to the gross income.

This is interesting. Can you explain the calculation? I don't get it. Also, can you share the link to the source? Thanks!