MAS relaxes debt servicing rules for some home owners refinancing loans
The Monetary Authority of Singapore (MAS) has relaxed a major curb on home loans to allow more home owners and investors to refinance their existing mortgages.
The revised rules will only apply to home owners who are refinancing loans for homes that were bought before the TDSR came into effect on June 29 last year.
The MAS will exempt home owners from the Total Debt Servicing Ratio (TDSR) if they are refinancing their loan for the property they live in, even if they own other properties and are servicing other home loans, it said on Monday.
The TDSR prohibits borrowers from taking or refinancing home loans that bring their total monthly debt repayments to over 60 per cent of their gross monthly incomes.