Dear Potential EC’S buyers,
Here are some tips before proceeding to purchase a property. With the recent guidelines on TDSR (Total Debts Servicing Ratio) introduce by MAS, I would advise all buyers to get professional advise from Financial Institutions before committing to a property because developer have the right to forfeit 25% of you 5% booking fee if you decide not to proceed with the sale after placing a 5% deposit. Below are some information that I have gathered from the press for your reference.
MAS introduces TDSR (Total Debt Servicing Ratio on the 28th June 2013. TDSR calculates the percentage of your income that can go into servicing your loan. at present , the highest TDSR that FI’s (Financial Institutions) are meant to allow is 60%. That means your housing loan repayment , after adding all your repayment obligations (student loans, credit cards debts, car loans, personal loans etc.) cannot exceed 60% of your income.