For a buyer at Thomson Eight, the bank loan is shaped by three MAS rules at once: the total debt servicing ratio, the loan-to-value limit and the maximum tenure. The tightest of them sets the amount.
The Total Debt Servicing Ratio at Thomson Eight
Under the total debt servicing ratio, or TDSR, all of a borrower’s monthly debt repayments, including the new home loan, may take no more than 55% of gross monthly income. Car loans, personal loans, other property loans and the minimum payments on credit cards all count, so they come off the 55% before anything is left for the new mortgage.
The bank does not test the loan at its own rate. It uses a medium-term interest rate, which for residential property is the higher of 4% a year or the market rate. Bonuses and other variable pay are taken at 70 cents on the dollar, and two borrowers are assessed on an average age weighted by what each earns.
The mortgage servicing ratio, which caps housing repayments at 30% of income, applies to HDB flats and executive condominiums. It does not apply to a private condominium such as Thomson Eight.
| Rule | What it caps | Limit |
|---|---|---|
| Total debt servicing ratio | All monthly debt repayments | 55% of gross monthly income |
| Medium-term interest rate | The rate used to test the loan | At least 4% a year |
| Maximum tenure | Loan term on private property | 35 years |
Source: MAS rules for new housing loans (TDSR, loan tenure, LTV and the 4% medium-term interest rate floor). Banks apply their own credit policies on top.
Thomson Eight Loan-to-Value Limits
Loan-to-value sets the largest loan as a slice of the price, and each housing loan a borrower is still repaying shrinks that slice. Stretch the term beyond 30 years, or let repayments run beyond 65, and the lower limits kick in, along with a larger cash portion.
| Housing loans already outstanding | Standard limit | Minimum cash | Longer tenure or past 65 |
|---|---|---|---|
| None | 75% | 5% | 55%, with 10% cash |
| One | 45% | 25% | 25%, with 25% cash |
| Two or more | 35% | 25% | 15%, with 25% cash |
Source: MAS rules for new housing loans (TDSR, loan tenure, LTV and the 4% medium-term interest rate floor). Banks apply their own credit policies on top.
Putting the Thomson Eight Rules Together
For most buyers the loan ends up limited by one of two things: income, through the TDSR, or price, through the loan-to-value limit. A high earner buying a first home often reaches the 75% limit first; a household with large existing car or property loans more often hits the TDSR ceiling.
The TDSR calculator runs both tests and reports which one binds. The progressive payment calculator then shows how the loan is drawn stage by stage, and the stamp duty calculator adds the duties.
An in-principle approval helps.
Banks can give an in-principle approval before booking day, so the loan amount is known before choosing a unit.
Register Your Interest in Thomson Eight
Register with the Sales Concierge to join the Thomson Eight priority list. Registered buyers receive the e-brochure, the floor plans and the price list the moment each is issued, and are first to be invited to the preview.
Shared with registered buyers upon release
- Priority invitations to view the showflat by appointment.
- The e-brochure, the floor plans and the price list, as soon as each is issued.
- A personal loan estimate using the TDSR calculator, with the stamp duty for your buyer profile.
- Clear guidance on financing and the payment schedule ahead of booking day.
Email the Sales Concierge
Every message receives a personal reply.
Registered buyers receive each Thomson Eight release first, from the e-brochure to preview invitations.
Email the Sales ConciergeSales Concierge: sales@thomson-eight.com.sg