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SG Home loan measures already taking effect: Tharman

Property Here - Monday, July 08, 2013

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The government’s latest home loan measures have had some effect in stabilising the market, noted Deputy Prime Minister and Minister of Finance Tharman Shanmugaratnam (pictured).

Speaking at the Jurong Lake Run yesterday, Mr Tharman said the Monetary Authority of Singapore's (MAS) new Total Debt Servicing Ratio (TDSR) framework was introduced to encourage prudence among banks and borrowers alike.

In effect since 29 June, the latest curbs mean banks can only approve a loan if a borrower's monthly repayments do not exceed 60 percent of his total monthly income. Banks will now use a standardised method to compute TDSR.

Highlighting the certainty of a future increase in interest rates, Mr Tharman advised Singaporeans to be cautious on their mortgage loans. He added that the regulations were not a fresh round of cooling measures.

Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email