Larger HDB resale flats to bear brunt of new cooling measures; may drive up rents

2 months ago 186

SINGAPORE - The latest round of property cooling measures is a necessary and inevitable move to nip overborrowing in the bud, given growing signs of overheating in the HDB resale and private housing markets amid rising interest rates and a gloomier economic outlook.

That the medium-term interest rate floor of 3.5 per cent used to compute the total debt servicing ratio (TDSR) was re-calibrated came as no surprise, as mortgage rates have already exceeded 3 per cent in recent months and if left unadjusted, will increase borrowers' financing risks.

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