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 :
- Forking out more cash on top of the 25% Downpayment, excluding of the stamp duties/ABSD payable.
- Getting a Smaller size property.
- 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