TDSR limits waived by MAS for deferred mortgage repayments

  • MAS released a clarification on Tuesday April 7 2020, responding to the queries from the public and media houses on its latest guidelines for deferment on secured loans and mortgage payments. The following are the pointers worth taking a note from the clarification:
    • TDSR will not be applicable to deferred secured property loans and residential, commercial or industrial mortgages as well as to non-secure credit facilities like credit cards and personal loans for individuals.
    • Businesses with mortgage withdrawal equity loans (MWL) not exceeding loan-to-value ratio by more than 50% are not subject to TDSR.
    • Businesses who took secured MWLs on their existing private residential and commercial properties will not be a subject to TDSR if the LTV ratio didn’t exceeded 50% since March 2017.

  • Total debt servicing ratio (TDSR) puts a limit on amount property buyers can borrow as loan against their monthly income. Repayment amount should not exceed 60% of the borrower’s monthly income as per TDSR. While, Loan to value (LTV) is the percentage of loan amount against the total value of the property.
  • The MAS announced deferment of secured loans and mortgage repayments as a measure to provide relief to the home owners and businesses in a period of economic downturn due to the Covid-19 outbreak.

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