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TSDR Stress Test Table for Residential. Updated as of 31 March 2023

TSDR Stress Test Table

Since 30th September 2022, the TSDR Stress Test guided by MAS is at 4% interest For Residential. And for Non-Residential is at 5% interest.


As of 31st March 2023, at BUYCONDO team we help our clients find the right property and recommend a bank loan to support their purchase.  The table is good for knowing which banks are taking what percentage as the Stress Test for the loan.


For example for a property purchase on 1st October 2022,

Based on $10k income, 55% MSR You can get up to $5,500 Max Monthly Mortgage ( this includes the secured/non-secured loans) based on a stress test interest simulating at 4%,75% LTV, 30 Year Tenure, you can Loan Up to $1,152,037, Max Purchase Price $1,536,049.


For example for property purchase on 1st April 2023,

Based on $10k income, 55% MSR You can get up to $5,500 Max Monthly Mortgage ( this includes the secured/non-secured loans) based on a stress test interest simulating at revised minimum of 4.5%,75% LTV, 30 Year Tenure, you can Loan Up to $1,085,486, Max Purchase Price $1,447,315.


4% -> 4.5%, All this equals, you can only borrow $66,551 lesser in the loan. The Purchase price on the affordability will be $88,734 lesser than the previously supported Sale Price unless is topped up by cash for the difference.


Old TDSR simulated interest Max Purchase Price $1,536,049.

New TDSR simulated interest Max Purchase Price $1,447,315.


The Main effect which means:

The buyer who is keen in getting a Residential Condo can only get a condo of a purchase price of approx $100k lower than before.

The ripple effect of the Increase of the TDSR Simulated interest :

  1. Forking out more cash on top of the 25% Downpayment, excluding of the stamp duties/ABSD payable.
  2. Getting a Smaller size property.
  3. Getting a lower priced property and the cons of it being located further away from MRT. Older Condos.

New Bank TDSR Stress Test Table Updated March 2023

New Bank TDSR Stress Test Table Updated March 2023

 

 

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