A blog reader shared with me that he had put down a deposit to buy a property for investment. When he applied for a housing loan, to his big surprise, the bank told him that he couldn’t pass the TDSR (Total Debt Servicing Ratio) test.

“I thought I was financially sound. How could I possibly fail the stress test?”

Another reader was checking with the bank to refinance his existing mortgage when the 3-month Sibor went up sharply in the middle of November. He had the same fate when he was informed of his failure to meet the 60 percent TDSR threshold.

“When I applied for my housing loan four years ago, it was a breeze to get the bank approval. So imagine the shock I got when they couldn’t help me to refinance.”

To get the answers straight from a mortgage expert, I talked to Wayne Quek, …