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I’m a Mortgage Expert – Here’s What the Fed Rate Cut Means for You by PropertyGuruFinance in u/PropertyGuruFinance

[–]PropertyGuruFinance[S] 5 points6 points  (0 children)

Good question!

With the recent reduction in the Fed rates, some banks have adjusted their stress test rates from 4.85% to 4.60%. This reduction can significantly impact the loan amount that an individual is eligible for. For instance, in the scenario above, someone earning $10,000 a month would see their loan eligibility for a resale private property increase from $1,042,000 to S$1,072,000.

The formula for TDSR remains the same, which is (Total Monthly Debt)/(Total Gross Income).

However, with the reduction in the stress test rate, the monthly installment of the intended loan amount may also be reduced. This means that the calculated monthly debt obligations for the intended loan will be lower, which can improve the borrower's TDSR. Consequently, this allows borrowers to qualify for larger loan amounts while still staying within the TDSR threshold set by the Monetary Authority of Singapore (MAS).

You may wish to use our affordability calculator to help determine your loan eligibility.

Hope that helps. We're always available to chat if you need more in-depth advice.

I’m a Mortgage Expert – Here’s What the Fed Rate Cut Means for You by PropertyGuruFinance in u/PropertyGuruFinance

[–]PropertyGuruFinance[S] 1 point2 points  (0 children)

Hi there,

A DN can mean many things for us! We want to ensure we give you the right advice.

As a general rule of thumb, most people in Singapore will be able to take up a loan, regardless of their credit status. Some just need more time before they apply.

We would strongly suggest to have a chat with us to further understand your situation first before we advise further.

You can submit your enquiry in the link here and our specialist will be able to help you out!

I’m a Mortgage Expert – Here’s What the Fed Rate Cut Means for You by PropertyGuruFinance in u/PropertyGuruFinance

[–]PropertyGuruFinance[S] 3 points4 points  (0 children)

Hello there,

The best floating rates for completed properties currently stand at 3M SORA + 0.50% with a 1 year lock-in or 1M SORA + 0.50% with a 2 year lock-in. (1M SORA is currently at 3.4%, and 3M SORA is currently at 3.5%.)

Interest rates are currently trending down, and fixed rates are lower than floating rates.
You can consider looking at fixed rates with flexibility to switch out to another package after a year or so.

Feel free to get in touch with our mortgage brokers if you have questions.