MAS Broadens Exemption from TDSR (Total Debt Servicing Ratio) Threshold.
Refinancing of Owner-Occupied Residential Properties Purchased before the Implementation of TDSR Rules:-
On 20 Feb 2014,MAS has decided to broaden the existing exemption from the TDSR threshold of 60 per cent for such loans to ease the debt servicing burden of these borrowers.
Refinancing of owner-occupied property loans
2 Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced – i.e. the Option to Purchase (OTP) of the residential property was granted before 29 June 2013 – will be exempted from the TDSR threshold as long as he occupies the residential property that is being refinanced.1 This is a concession compared to the current rules, which also require that he does not own any other property, or have any other outstanding property loan.
3 The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums (ECs) that are owner-occupied and were purchased before their respective MSR implementation dates.2
4 A similar concession will apply with regard to loan tenures, for residential properties purchased before the respective implementation dates for the loan tenure limits.3 In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current regulatory limits4 will be allowed to maintain the remaining tenures of their loans at the point of refinancing
Refinancing Homeloan Option
5 The TDSR threshold of 60 per cent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates.
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PROPERTY TAX
Progressive Tax Rates from 1 Jan 2014
Residential Properties (Exclude residential land) |
||
Annual Value ($) |
Tax Rates (%) |
Tax Payable ($) |
First $ 30,000 |
10 |
3000 |
Next $ 15,000 |
11 |
1650 |
First $ 45,000 |
– |
4650 |
Next $ 15,000 |
13 |
1950 |
First $ 60,000 |
– |
6600 |
Next $ 15,000 |
15 |
2250 |
First $ 75,000 |
– |
8850 |
Next $ 15,000 |
17 |
2550 |
First $ 90,000 |
– |
11400 |
Amount exceeding $ 90,000 |
19 |
|
Owner-Occupied Homes |
||
Annual Value ($) |
Tax Rates (%) |
Tax Payable ($) |
First $ 8,000 |
0 |
0 |
Next $ 47,000 |
4 |
1880 |
First $ 55,000 |
– |
1880 |
Next $ 5,000 |
5 |
250 |
First $ 60,000 |
– |
2130 |
Next $10,000 |
6 |
600 |
First $ 70,000 |
– |
2730 |
Next $ 15,000 |
7 |
1050 |
First $ 85,000 |
– |
3780 |
Next $ 15,000 |
9 |
1350 |
First $ 100,000 |
– |
5130 |
Next $ 15,000 |
11 |
1650 |
First $ 115,000 |
– |
6780 |
Next $ 15,000 |
13 |
1950 |
First $ 130,000 |
– |
8730 |
Amount exceeding $ 130,000 |
15 |
|
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