In a parliamentary reply, the Chairman of the Monetary Authority of Singapore (MAS) set out the safeguards MAS and the Housing & Development Board (HDB) use to pre-empt over-borrowing for property purchases and to strengthen borrowers’ resilience to rising interest rates. Loan affordability assessments by banks incorporate an interest rate floor in the calculation of the Total Debt Servicing Ratio (TDSR), applying to mortgage loans for both private property and HDB purchases. For HDB loans, HDB assesses the loan quantum and offers concessionary mortgage loans to eligible flat buyers, with the impact of higher interest rates mitigated by pegging the HDB mortgage rate to the Central Provident Fund (CPF) Ordinary Account interest rate. The reply also noted that interest rates have remained stable in Singapore, while urging homebuyers to be prudent given global uncertainty.
Monetary Authority of Singapore 2026-04-08
Monetary Authority of Singapore reiterates mortgage borrowing safeguards including TDSR interest rate floor and HDB loan peg to CPF rates
The Monetary Authority of Singapore outlined safeguards, including interest rate floors in Total Debt Servicing Ratio calculations and Housing & Development Board loan affordability assessments, to pre-empt over-borrowing for property purchases and bolster resilience to rising interest rates. The Housing & Development Board offers concessionary loans to eligible buyers and pegs its mortgage rate to the Central Provident Fund Ordinary Account rate, while the authority said domestic interest rates remain stable but urged borrower prudence amid global uncertainty.