341 views

Rising interest rates a major concern for property investors in 2023

Asking help from bank lenders will be challenging this year.

The increase in interest rates is seen to be a major concern for investors as they review their options in 2023, Savills said in its report.

In the short term, finance from traditional bank lenders is projected to be challenging as they will need to evaluate risk, which will provide for bank lenders who are able to fill the gap with enhanced returns.

To curb the potential of accrued borrowing, the government imposed cooling measures such as the TSDR framework which is applied to private and public properties.

The TDSR for private properties is set at 60%, meaning that borrowers can only take on a mortgage that does not exceed 60% of their gross monthly income.

The government also has a Loan-to-Value (LTV) framework in place, which limits the amount of loan that a borrower can take on based on the value of the property. The LTV limit for a first-time borrower is set at 80% and subsequent borrowers at 75%.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!