Private property buyer affected by higher medium-term interest rate floor

A buyer with a monthly household income of $16,000 can now borrow only about $1.667 million (assuming a loan tenure of 25 years, loan-to-value limit of 75% and no debt obligations) using a medium-term interest rate of 4%. This is nearly $91,000 less than before.

*based on Total Debt Servicing Ratio of 55%. This is the portion of a borrower’s gross monthly income that goes towards repaying debt obligations.
Table: STRAITS TIMES GRAPHICS Source: PROPNEX RESEARCH