SINGAPORE - Potential property buyers will now have a service to inform them about how much a property loan they can take with United Overseas Bank's (UOB) new online property loan calculator.
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| Source: Internet Screen Snap |
The calculator, launched by UOB on Thursday, allows potential buyers to determine their total debt servicing ratio (TDSR) for their mortgage loan applications.
In a press release, UOB said that one in three homebuyers surveyed were unaware or did not understand the Monetary Auhotrity of Singapore's (MAS) TDSR criteria for property loans.
Under the TDSR framework, customers can only be granted property loans if their total debt servicing ratio was 60 per cent or lower.
UOB's TDSR calculator covers loans to purchase and to re-finance properties across all property types, including private residences, Housing Board (HDB) flats, international and commercial properties.
Ms Chia Siew Cheng, head of secured loans, UOB Group, said: "Our aim is to make it easier for our customers to understand their personal financial situation, and for them to be able to make informed decisions about purchasing or refinancing a property."
According to UOB, one in two survey respondents prefer to use online calculators to find out how much they can borrow before sending their applications to a mortgage banker.
UOB's TDSR calculator can evaluate up to four borrowers' mortgage servicing ratio (MSR), or the proportion of monthly gross income spent on mortgage repayments, and also offers the option for customers to pledge their financial assets as additional income streams for detailed mortage analysis.
Says Ms Chia, "Buying a property is a long-term commitment. When someone decides to buy a property, they should be clear about the costs and terms of their home loans."
She added that buyers should also set aside sufficient funds to manage potential rising interest rates and other unforeseen circumstances.
UOB's TDSR calculator is a free service available at www.uob.com.sg/TDSR. Results from the calculator are displayed onscreen, and customers do not have to leave their contact details.
Source: AsiaOne (18 Dec 2014)