MAS Broadens Exemption from TSDR Threshold for Refinancing

[cif5000]

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!

Look under Gross Monthly Income. http://www.mas.gov.sg/~/media/MAS/Regula..._Final.pdf

[opmi]

Must the shares be collateralized with the bank loan?

[Ben]

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!

Look under Gross Monthly Income. http://www.mas.gov.sg/~/media/MAS/Regula..._Final.pdf

Thanks for the info.

[chialc]

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.

yes, you can refinance with other bank.

[chialc]

Must the shares be collateralized with the bank loan?

Yes.
If pledge < 4 yrs then can use 30% as your montly gross income calculation
If pledge > 4 yrs then 70% aka <asset value pledge> * 70% / 48

Life is beautiful, isn't it?

Love Compassion

[sunrocker]

Must the shares be collateralized with the bank loan?

Yes.
If pledge < 4 yrs then can use 30% as your montly gross income calculation
If pledge > 4 yrs then 70% aka <asset value pledge> * 70% / 48

Life is beautiful, isn't it?

Love Compassion

Hi Opmi, I think the correct way is:
1. If don't pledge, take 30% / 48
2. If pledge, take 70% / 48

Not pledge less than 4 yrs.

Correct me if I am wrong.

[chialc]

Hi Opmi, I think the correct way is:
1. If don't pledge, take 30% / 48
2. If pledge, take 70% / 48

Not pledge less than 4 yrs.

Correct me if I am wrong.

Sorry if I confused you.
Hope this is clearer.
Let me re-write based on MAS announcement:

A) For liquid assets eg cash/coins/fixed deposit etc:
if pledge > 4 yrs, no deduction aka 100% of <asset value> will be use for calculation (divide by 48 month to gives gross monthly income)
if pledge < 4 yrs, deduct 70% aka only 30% of <asset value> for calculation

B) other assets (eg. stocks/unit trust/gold/foreign currency):
if pledge > 4 yrs, deduct 30% aka use 70% of <asset value> for calculation
if pledge < 4 yrs, deduct 70% aka use only 30% of <asset value> for calculation

Note that for liquid asset, you do not need to pledge with the bank that gives you mortgage. You can pledge to any financial institution that regulated by MAS.

[opmi]

I am confused already....hahaha...

Just use shares as an example.

Pledge shares to Bank giving bank loan (Collateral = Shares + Property)
--- What % discount given to Shares???

Pledge shares to DBS Vickers + Pledge property to bank loan (Collateral = Property only) --- What % discount given to Shares???

Thanks,

[Ben]

Chialc, the column on the right of the table mentioned ".....eligible financial assets that is unpledged, or pledged for less than 4 years". You may also refer to the illustrative example 1 which clearly says that if one does not intend to pledge his eligible financial assets, then take 30% and divide over 4 years.

[chialc88]

thanks Ben for the corrections.
Yes, my mistake...

No pledge also can take 30% as calculations for gross monthly income.

A Life not Reflected is a Life not Worth Living.