Many analyst and property analysts in Singapore feel that the total debt servicing ratio (TDSR) may hit hdb upgraders who are currently living in HDB more than those who are living in private properties. The TDSR framework was introduced by the Republic to prevent buyers from overstrenching themselves in the event that interest rates rises.
According to statistics, private property purchases by HDB dwellers drop a significant 52 percent in Q3 compared to the figures in Q2. HDB properties owners have bought a total of 1,574 private homes.
However, among the HDB upgraders, many of them might be hit with the TDSR ruling and might consider ECs compared to private properties. This is because the borrowing limits are less stringent for an EC compared to private properties. According to the TDSR framework, a buyer who has an existing HDB mortgage loan will not have his monthly HDB payments included in the calculations should he decide to buy an EC. This is because an EC buyer will not have his monthly HDB mortgage payments taken into consideration when buying an EC. The TDSR payments does not factor in the HDB mortgage payments as the EC buyer is required to sell their unit within 6 months from the TOP of the EC.
new HDB Upgraders
Also a point to note is that for current HDB upgraders who are looking to buy a private property, both the monthly mortgage payments on the new condo purchase as well as the existing condo needs to be taken into consideration.
As Riverbank Condo at Sengkang West Way is a private property, many buyers might face similar problems when upgrading due to the same TDSR restrictions. However, as the price of Riverbank condo could be more affordable compared to other condos within the vicinity, the results for the release for Riverbank condo new launch might be more favourable as the buyers can afford the unit based on the TDSR restrictions.