We have released this easy-to-read table showing the impact on mortgages for ECs. Learn about how financing for ECs work, and whether MSR is applicable. Updated with latest announcement by MND & HDB.
- If you are borrowing up to 80% LTV, Loan Tenure is up to 30 years, capped at age 65 whichever is lower. For 60% LTV, Loan Tenure is up to 35 years, capped at age 65 whichever is lower.
- Minimum cash downpayment for 80% LTV is 5% while 60% LTV is 10%. You can utilize funds from CPF OA account for the rest of downpayment.
- The age used to calculate loan tenure is based on income-weighted. See an example here. Many assumed it’s based on the younger borrower or average age of all borrowers. It has been changed since the implementation of TDSR. Income-weighted age considers the ages and incomes of all borrowers, to derive a “age” for computation of loan tenure.
- EC mortgages also follows these guidelines:
- 60% of Total Debt Servicing Ratio (TDSR)
- 3.5% Medium-term Interest Rate
- 30% Mortgage Servicing Ratio (MSR). The good news is 30% MSR is only applicable to purchases of EC units directly from developers. Buyers of resale ECs are exempted.