Published:
Quick guide to what happens when mortgage servicing ratio is limited
It's internally capped at 40-50%.
According to CIMB, MAS can choose to limit the mortgage/debt servicing ratio for mortgages. Private property loans currently have no mortgage service ratio cap even though the banks do internally cap the MSR at 40-50%.
"Limiting the mortgage servicing ratio (% of mortgage payment to household income) or debt servicing ratio (% of total debt serviced to household income) would cap the ability of a single buyer to take up a mortgage, effectively closing the legal loophole that allows an individual to rely on a guarantor when applying for mortgage loans," CIMB said.
Read Here
Advertise
Sign Up
