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What is the TDSR?

The Total Debt Servicing Ratio (TDSR) is a framework to ensure that people borrow, and banks lend, responsibly.

In a nutshell, the TDSR limits the amount borrowers can spend on debt repayments to 60 per cent of their gross monthly income.

Unlike other cooling measures, which are expected to be temporary, the TDSR is a permanent structural reform that all banks and financial institutions must follow when assessing:

housing loans the refinancing of housing loans loans secured by the property. Why