MSR for HDB and EC

Mortgage Service Ratio (MSR) was announced by the Monetary Authority of Singapore (MAS) and HDB in 2013, where buyers can only use up to 30% of their gross monthly income to repay their loans. The objectives are to instill financial prudence, moderate an over-heating property market and support an affordable and sustainable EC market.

First announced on 12 Jan 2013, MAS introduced MSR capped at 30% for HDB loans taking from banks. MSR is applicable to purchases of resale and Build-To-Order (BTO) HDB flats. It then extended MSR on 9 Dec 2013 to Executive Condominiums (ECs) bought directly from developers. span style=”font-size:16px;”>MAS announced on 1 September 2016, that HDB and EC home owners can be exempted from MSR when they refinance the loans. This is good news for everyone. You may not be stuck with high interest rates anymore.

Calculate Your MSR

MSR is capped at 30% of all borrowers’ gross monthly income. Calculation of MSR is based on loan tenure, loan amount, combined monthly gross income and a medium-term 3.5% interest rate.

A pass is good news. You should proceed to apply for in-principle approval.

A fail is not necessarily bad news. Contact us for a discussion. We will help you find a solution.