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.

While 64 per cent said that they are aware of how debt is calculated under the TDSR, many said they did not know that banks have to look at their total debt obligations - including credit card debts or obligations as a guarantor - before granting approval for home loans.

This results in home loan applicants often failing to produce credit card statements from all their card issuers, as well as information on their vehicle loans and documents showing their status as guarantor for other loans.

Ms Chia Siew Cheng, UOB's head of secured loans said in a statement: "The TDSR framework requires a more holistic view of the home buyer's total debt obligation for property loans. Most of the time, home buyers bring inadequate or incorrect documents to support their application or are not aware that loans are granted based on an assessment of their total outstanding debt including credit cards."