1. Approval will have to take in all liabilities, even credit cards. Documentation will have to be provided to proof the liability amount
2. Approval based on 3.5% calculation of monthly instalment instead of the current 2.8%
3. 60% of your monthly income max should be used for monthly instalment. Nothing more than that.
4. To recognise only 70% of bonuses and rental incomes
5. Borrowers can only be the owners of the house
6. Guarantors must be borrowers
7. To use income weighted age of borrowers. No longer based on youngest borrowers
Example:
Husband aged 40 earns $5,000 monthly. Wife aged 30 earns $3,000 monthly.
In order to calculate income weighted aged, apply the following:
Income weighted Age = (40 x 5000) + (30 x 3000)
5000 + 3000
= 36.25 (Round to next whole digit) = 37
Max Loan Period = 65 - 37 =28 years
Click this link for the full press release from MAS.
