Mortgage Servicing Ratio (MSR)
While TDSR allows maximum 60% of the buyer’s gross monthly income on all kinds of debt repayment, the Mortgage Servicing Ratio (MSR) places a cap on the percentage of a buyer’s gross monthly income to be used on servicing mortgage payment specifically. At the moment, the MSR is set at 30%, which means only 30% of your gross monthly income can be used to service your mortgage repayment.
TDSR applies to all housing loans but the MSR applies only to loans for Resale & Build-To-Order (BTO) HDB flats and Executive Condominiums (ECs) bought directly from developers, and the refinancing of these loans. All HDB-issued loans, and loans issued by banks for both HDB flats and ECs, have an MSR of 30 percent.
Exemptions
MSR does not apply to the refinancing of loans for HDB flats and ECs:
• that are owner-occupied and
• that were purchased before 12 January 2013 (for HDB flats) and 10 December 2013 (for ECs purchased directly from a property developer).
If you are buying a private residential property, you can put MSR aside for now.
TDSR applies to all housing loans but the MSR applies only to loans for Resale & Build-To-Order (BTO) HDB flats and Executive Condominiums (ECs) bought directly from developers, and the refinancing of these loans. All HDB-issued loans, and loans issued by banks for both HDB flats and ECs, have an MSR of 30 percent.
Exemptions
MSR does not apply to the refinancing of loans for HDB flats and ECs:
• that are owner-occupied and
• that were purchased before 12 January 2013 (for HDB flats) and 10 December 2013 (for ECs purchased directly from a property developer).
If you are buying a private residential property, you can put MSR aside for now.