News: MAS waives TDSR limits for deferred mortgage repayments

Apr 8, 2020

Borrowers who apply to defer either their home loan’s principal payment or both their interest and principal payments will be exempted from the TDSR limitations.

The Monetary Authority of Singapore (MAS) has clarified that certain limits for deferred payments on consumer loans and mortgages will be waived in a bid to help borrowers get through the economic slump.

It explained that the Total Debt Servicing Ratio (TDSR) will not apply to deferment of mortgage repayments for commercial, industrial and residential properties, refinancing of owner-occupied residential mortgages as well as unsecured credit facilities like personal loans and credit cards.

The TDSR will not apply to mortgage equity withdrawal loans (MWLs) if the loan-to-value (LTV) ratio is not more than 50%, reported The Straits Times.

TDSR sets the limit on how much buyers can borrow in a property loan. Generally, the monthly repayment of a borrower for all debts should not exceed 60% of his monthly income. This includes credit card bills, mortgages, personal loans and car loans.

LTV, on the other hand, is the loan amount as a percentage of the value of the property.

Find out how much of your gross income you can put into your mortgage with our TDSR calculator.

Borrowers who apply to defer either their home loan’s principal payment or both their interest and principal payments will be exempted from the TDSR limitations, said MAS. Interest will accrue on the deferred principal amount only.

The relief applies to MWLs and home loans, including those on debt reduction plans, while extending to both investment and owner-occupied (private and HDB) properties.

MAS made the clarification in response to queries on its guidelines for deferment of mortgage payments and secured loans, helping businesses and individuals explore options to address their cash flow issues.

Need help to refinance your home loans? Find and compare the best home loan rates on PropertyGuru Finance, or speak to our experienced advisors for advice. 

Meanwhile, property consultants noted that the central bank’s latest statement helped clear any doubts regarding the relief package unveiled last week.

“MAS and banks are offering a helping hand to those who may find it hard to repay their debts in these difficult times,” said Desmond Sim, South-east Asia Head of Research at CBRE.

Borrowers can apply to the loan relief, without changing the overall framework which ensures prudent borrowing and lending within the property market, he noted.

“The government and MAS are offering support at a broader scale. So I don’t think any more specific support is likely for the property market at this time,” added Sim.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email


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