Today, MAS decided to announced a tweak to their total debt servicing ratio (TDSR). The TDSR is a financial prudence ratio that only allows banks to led money to family, whose total debt is not more than 60% of their income. The new rules:

1. allow property owners who bought their housing after the TDSR is in place and currently violate the TDSR limit, to refinance their loans. Previously this can only be enjoyed before the TDSR was introduced
2. TDSR for buyers did not relax

To benefit from this new rule, the borrower needs to commit to a debt reduction plan to repay at least 3 per cent of the loan’s total outstanding balance over three years. I like that they keep the TDSR, though these changes, after they say they won’t relax the property laws, is unsettling they will release this to halt a future crashing market. However, from the increase ......