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.

Already a subscriber? Log in

ST One Digital


No contract

ST app access on 1 mobile device

Unlock these benefits

  • All subscriber-only content on ST app and

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Read Entire Article