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1 in 3 home buyers don't understand new home loan rules: survey

Published on May 9, 2014 3:38 PM
 
Buyers checking out the showroom at Riverbank @ Fernvale which is near the Layar LRT station. One in three home buyers do not fully understand the new Total Debt Servicing Ratio (TDSR) framework for property loans, a survey by local bank UOB has found. -- FILE PHOTO: UOL

SINGAPORE - One in three home buyers do not fully understand the new Total Debt Servicing Ratio (TDSR) framework for property loans, a survey by local bank UOB has found.

The survey, conducted from March 20 to 27 this year, quizzed 210 Singapore citizens and permanent residents about their awareness of the TDSR framework. The TDSR rules cap a borrower's loans such that his or her total monthly debt repayments do not exceed 60 per cent of income.

Buyers of both private property and Housing Board flats took part in the poll, which also found that 42 per cent of respondents do not know how existing cooling measures in the property market affect their housing loan applications.

A further 43 per cent were also unaware of how the TDSR framework applied to their personal situations.

 
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