One of the tougher restriction is as follow.
"The government will also tighten the total debt servicing ratio threshold to 55% from 60%, which takes effect from Dec 16. This means that a person’s total monthly loan payments, including mortgages, cannot exceed 55% of the individual’s total gross income."
Many experts say is just 5% only. So let see how much it will be like.
To calculate a borrower’s TDSR, use the following formula:
(Borrower's total monthly debt obligations / Borrower's gross monthly income) x 100%
Residential property or secured by residential property
Not less than 3.5% or the prevailing market interest rate, whichever is higher.
Let say debt is $5000 monthly for a Condo today, Gross Salary needs to be $8333. With the 5% increase in TDSR, Salary now needs to be $9091. That's $758 increase of Gross income. Personally I feel this is not a small sum. A 9% increase in gross income needed. Basically put many people out of reach for a few years.
Merry Christmas and Happy New Year
CoryLogics Invest Chat - No Coin, No Porn, No Penny
Telegram CoryLogics <= Link to Telegram
Articles in this Blog is personal take and sharing purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.
Post a Comment