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Commercial property in Singapore is a lucrative asset class, attracting businesses, investors, and tenants due to the city-state’s thriving economy and strategic location. However, purchasing, leasing, or investing in commercial real estate comes with its own set of challenges. This guide addresses the common pain points of those dealing with commercial property and provides actionable insights, real numbers, and practical advice to navigate Singapore’s commercial real estate landscape effectively. Understanding Commercial Property in Singapore Commercial properties encompass a wide variety of spaces used for business activities, including: Pain Points for Commercial Property Buyers, Tenants, and Investors A. Buyers B. Tenants C. Investors Commercial Property Financing in Singapore Factor Residential Property Commercial Property Loan-to-Value (LTV) Up to 75% Up to 80% Interest Rates 2.5% to 3.0% 2.5% to 4.0% Down Payment 25% 40% Tenure Up to 30 years Typically capped at 15-20 years Taxation for Commercial Property Market Trends and Investment Insights Office Spaces Retail Spaces Industrial Properties Choosing the Right Commercial Property Factors to Consider: Investment Potential: Pros and Cons Feature Office Space Retail Space Industrial Property Rental Yield Moderate (2-3%) Moderate to High (3-5%) High (5% or more) Tenant Demand Strong in CBD Depends on footfall and location Increasing in e-commerce sectors Purchase Price High Moderate Moderate to Low Vacancy Risks Moderate High Low The Role of Technology in Commercial Property FAQs Commercial property in Singapore offers substantial opportunities for buyers, tenants, and investors, but it requires a thorough understanding of the market and financial implications. Need expert advice? Reach out to me, Dominic Choa, at dominicchoa.com for tailored solutions to your commercial property needs in Singapore.

Top 5 Emerging Real Estate Investment Opportunities in Singapore for 2025 Singapore, with  its stability, robust infrastructure, and strategic location, continues to be a top destination for real estate investors globally. Recent reports from Knight Frank and CBRE highlight that Singapore’s real estate market attracted over SGD 20 billion in foreign investments in 2024, underscoring its appeal as a secure and profitable investment hub.  As we approach 2025, the city-state’s real estate market is set to offer exciting opportunities driven by evolving trends, government initiatives, and economic growth. This guide delves into the top five emerging investment opportunities in Singapore, providing detailed insights, metrics, and comparisons to aid investors in making informed decisions. 1. Luxury Property Market in the Core Central Region (CCR) Overview The luxury property market in Singapore’s Core Central Region (CCR) has consistently attracted high-net-worth individuals (HNWIs) and foreign investors. Key areas like Orchard Road, Marina Bay, and Bukit Timah are known for their high-end condominiums and landed properties with strong investment returns over time Key Drivers Metrics and Comparisons Metric CCR (Luxury Properties) Rest of Central Region (RCR) Outside Central Region (OCR) Average Price (PSF) $2,800 – $5,000 $2,500 – $2,800 $2,200 – $2,500 Rental Yield 2.5% – 3.0% 3.0% – 3.5% 3.5% – 4.0% Average Tenant Profile HNWIs, Expats Mid-level Professionals Local Families 2. Affordable Housing in Strategic Locations Overview While luxury properties dominate headlines, affordable housing projects remain a cornerstone of Singapore’s real estate market. Upcoming townships  like Tengah and major urban transformation regions like the Woodlands Regional Centre and Punggol Digital District are emerging as attractive options for property buyers and investors. Key Drivers Metrics and Comparisons Area Average Price (HDB 4-room) Connectivity (MRT Stations) Future Developments Tengah $350,000 – $450,000 3 Tengah Forest Town, EV-ready Punggol $600 – $750,000 4 Punggol Digital District Woodlands $500,000 – $700,000 5 Woodlands Regional Centre 3. Mixed-Use Developments Overview Mixed-use developments, which integrate residential, commercial, and recreational spaces, are becoming increasingly popular in Singapore. According to a 2024 survey by Urban Redevelopment Authority (URA), 68% of homebuyers expressed a preference for living in mixed-use developments due to the convenience of having amenities within walking distance. Additionally, studies from CBRE highlight that mixed-use properties have seen a 10% higher occupancy rate compared to standalone residential developments over the past two years. These projects cater to modern lifestyles and offer diversified income streams for investors. Key Drivers Notable Projects Metrics and Comparisons Metric Mixed-Use Developments Standalone Residential Rental Yield 3.5% – 4.0% 2.5% – 3.5% Capital Appreciation 8% – 12% (10-year avg.) 6% – 10% (10-year avg.) Tenant Retention Rates High Moderate 4. Industrial and Logistics Properties Overview With the rise of e-commerce and global trade, industrial and logistics properties are gaining traction. Recent data from the Urban Redevelopment Authority (URA) shows a 15% year-on-year increase in demand for logistics facilities in 2024, driven largely by e-commerce platforms like Lazada, Shopee, and Amazon. Case studies highlight the success of Jurong Logistics Hub, which achieved 95% occupancy within six months of launch, underscoring the strong demand for modern warehousing solutions. Warehousing and distribution hubs in areas like Jurong and Changi are particularly attractive. Key Drivers Metrics and Comparisons Metric Industrial Properties Commercial Properties Average Rental Yield 5.0% – 6.0% 3.0% – 4.0% Average Lease Tenure 20 – 30 years 10 – 15 years Capital Appreciation Moderate High 5. Sustainable and Green Real Estate Overview Sustainability is at the forefront of real estate innovation in Singapore. Green-certified buildings and eco-friendly developments are becoming a priority for investors and tenants alike. Notable recent projects include CapitaGreen, which integrates energy-efficient technologies and lush greenery within a central business district skyscraper, and JTC CleanTech Park, Singapore’s first eco-business park that emphasizes sustainability and innovation. Regulations like the Green Mark Certification scheme continue to incentivize developers to adopt green practices, ensuring that Singapore remains a leader in sustainable urban development. Key Drivers Notable Examples Metric Green Properties Non-Green Properties Average Price Premium 5% – 15% None Operational Cost Savings 20% – 30% Minimal Tenant Preference (Survey) 70% prefer green buildings 30% indifferent The Singapore real estate market in 2025 offers diverse investment opportunities catering to different risk appetites and preferences. From luxury properties in the Core Central Region to emerging affordable housing in strategic locations, the options are vast and promising. Mixed-use developments provide convenience and steady returns, while industrial properties benefit from the e-commerce boom. Additionally, green real estate aligns with global sustainability trends and offers long-term value. Investors should assess their financial goals, risk tolerance, and market trends before diving in. Singapore’s transparent regulations, coupled with its robust economic fundamentals, make it a haven for real estate investment. With the right strategy and insights, 2025 could be a pivotal year for building wealth in Singapore’s dynamic property market. Need guidance to navigate Singapore’s real estate landscape? Connect with Dominic Choa for expert advice and tailored investment strategies.

Renting an HDB Flat in Singapore: Essential Tips and Insights from Dominic Choa Real Estate In the bustling city-state of Singapore, Housing and Development Board (HDB) flats have long been the cornerstone of affordable and quality housing. With over 80% of Singaporeans residing in HDB flats, these public housing units have become integral to the nation’s landscape and culture. For those seeking comfortable and cost-effective accommodation, HDB flats for rent in Singapore offer an attractive solution. At Dominic Choa Real Estate, we’ve been at the forefront of Singapore’s property market, guiding countless clients through the intricacies of HDB rentals. Our expertise in this sector allows us to provide invaluable insights into navigating the HDB rental landscape. This comprehensive guide aims to equip you with all the essential information you need to make informed decisions about renting an HDB flat in Singapore. Understanding HDB Rentals in Singapore A. What are HDB flats? HDB flats are public housing units developed and managed by the Housing and Development Board, a statutory board under the Ministry of National Development. Introduced in the 1960s to provide affordable housing for Singaporeans, they have since evolved into high-quality homes that cater to various lifestyle needs and preferences. B. Types of HDB flats available for rent C. HDB rental market trends and statistics As of 2024, the HDB rental market in Singapore remains robust. According to recent data from the HDB, the median rent for a 4-room flat in mature estates ranges from $2,300 to $2,800 per month, while similar units in non-mature estates fetch between $2,000 to $2,500. The demand for HDB rentals has seen steady growth, with a 5% year-on-year increase in rental transactions. Eligibility and Regulations for HDB Rentals A. Who can rent HDB flats? B. Landlord eligibility and responsibilities To be eligible to rent out an HDB flat, owners must: Landlords are responsible for: C. Minimum Occupation Period (MOP) rules The MOP is typically five years for most HDB flats, starting from the date of key collection. During this period, owners cannot rent out their whole flat but may be allowed to rent out spare rooms under certain conditions. D. Recent changes in HDB rental regulations As of 2024, HDB has implemented new rules to ensure a more balanced rental market: Finding and Renting an HDB Flat A. Where to search for HDB rentals B. What to consider when choosing an HDB rental C. The rental process step-by-step HDB Whole Unit Rentals vs. Room Rentals A. Pros and cons of renting a whole HDB unit Pros: Cons: B. Benefits and considerations for room rentals Benefits: Considerations: C. Pricing comparisons On average, renting a room in an HDB flat costs about 40-60% less than renting a whole unit. For example, a room in a 4-room flat in a mature estate might cost $700-$1,000 per month, while the entire flat could be rented for $2,300-$2,800. D. Legal considerations for subletting rooms HDB Shops for Rent A. Overview of HDB commercial properties HDB shops are commercial spaces located within HDB estates, providing convenient access to goods and services for residents. B. Eligibility for renting HDB shops C. Finding and applying for HDB shop rentals D. Considerations for business owners Buying vs. Renting HDB Flats A. Comparison of costs: long-term renting vs. buying While renting offers flexibility, buying an HDB flat can be more cost-effective in the long run. For instance, the total cost of renting a 4-room flat for 25 years could exceed the purchase price of a similar unit. B. Eligibility differences for buying and renting Buying an HDB flat has stricter eligibility criteria, including: Renting, on the other hand, offers more flexibility, especially for non-citizens and those who don’t meet buying criteria. C. New rules for buying HDB flats in Singapore Recent changes include: D. Considerations for Singapore PRs looking to buy HDB New HDB Developments and Launches A. Overview of upcoming HDB projects HDB regularly launches new projects in various locations across Singapore. Some notable upcoming developments include: B. Benefits of new HDB flats C. Application process for new HDB launches D. Rental potential of new HDB flats New HDB flats often command higher rentals due to their modern features and amenities. However, owners must fulfill the MOP before renting out their flats. Expert Tips from Dominic Choa Real Estate A. How to negotiate better rental terms B. Common pitfalls to avoid when renting HDB flats C. Maximizing your HDB rental experience D. Future trends in the HDB rental market Conclusion Navigating the HDB rental market in Singapore can be complex, but with the right knowledge and guidance, it can be a rewarding experience. From understanding the various types of HDB flats available for rent to knowing the eligibility criteria and rental processes, this guide has covered the essential aspects of renting an HDB flat in Singapore. Whether you’re a local resident, a PR, or a foreigner looking to rent in Singapore, the HDB rental market offers a range of options to suit different needs and budgets. By leveraging the expertise of seasoned professionals like Dominic Choa Real Estate, you can make informed decisions and find the perfect HDB rental that meets your requirements. Don’t navigate the HDB rental market alone. Contact Dominic Choa Real Estate today for personalized assistance in finding your ideal HDB rental in Singapore. Our team of experts is ready to guide you through every step of the process, ensuring a smooth and satisfactory rental experience.

The Unique Neighbourhoods of Lorong Chuan and Serangoon Gardens Have you ever dreamed of staying in a place not dominated by towering high-rises but filled with greenery and low-rise houses instead? A place with its own unique flair and personality, where heritage and modern lifestyle blend seamlessly? Areas like Katong or Tiong Bahru might come to mind, but they can be a bit too upscale for some. What if we told you there’s a hidden gem in District 19 that offers the same charming living experience?  Welcome to the quaint estate of Serangoon Garden, one of Singapore’s most distinct housing areas. A Brief History Serangoon Garden is a residential estate and a subzone in the Serangoon planning area, located in District 19.  In the 1950’s the estate now known as Serangoon Gardens was built to provide housing for workers and their families in the area, such as teachers, labourers and airmen. These townhouses and bungalows, with their distinctive red roof tiling became synonymous with the area – a distinctive trait that a good number of houses retain, even today. As the area became populated, amenities and conveniences were built into the area, such as shops, eateries started showing up, and a recreational clubhouse, Serangoon Gardens Sports Club. Serangoon Garden Today: Amenities and Landscape Serangoon Garden has kept most of its landscape and architecture from the olden days, retaining its iconic look and feel, while offering modern conveniences to its residents. Many of the residential houses in Serangoon Gardens still retain their distinct red roof tiling, which can be observed over its low-rise skyline. Serangoon Garden Circus, where most of the shops were situated still stands, with their tenants hosting a wide range of food and services catered to the modern tastes of residents.  The recreational clubhouse, now known as Serangoon Gardens Country Club, still stands, with members from the estate frequenting it for sports and recreational activities, as well as classes and enrichment activities for their children. The street food vendors that used to run their businesses out of carts along Serangoon Garden Way were also given a hawker centre to set up stalls and operate out of in 1972. The hawker centre, now known as Chomp Chomp Food Centre, is famous today for its selection of local food (famous dishes there include BBQ stingray and Hokkien Mee) and is one of the more well-known and frequented hawker centres in Singapore. Why Is Serangoon Gardens Such a Popular Estate? Serangoon Gardens is one of the most popular and recognisable estates in Singapore, and for good reasons. Kampong Spirit It is not uncommon to find people that have stayed there their whole lives, with their homes being passed down generations over the last 70 or so years of its existence. This gives the estate a warm, kampong feel with the community fostered between the residents of the estate that residents have fondly dubbed “the feel of an old English village”. A cosmopolitan village In addition to this expatriates, particularly those from Australia or France, tend to rent homes in Serangoon Gardens, due to its proximity to the Australian and French international schools.  With an established community of foreigners and expatriates, there has been an increase in the number of businesses catered to the needs of these communities. You can find cafes and eateries at Serangoon Garden Circus serving western fare, as well as grocery stores such as Little Farms and a French grocer. The presence of these establishments within the landed enclave gives the neighbourhood a distinct, cosmopolitan vibe that can be likened to that of Holland Village. A Wealth of Amenities In comparison to other landed estates or enclaves in Singapore, Serangoon Garden offers more amenities to its residents. The mini hub at Serangoon Garden Circus offers everything for its residents, from food, to enrichment and tuition centres, as well as healthcare, and pet care shops. There is even a shopping mall, MyVillage with a FairPrice Finest for residents to do their shopping, along with dining options, and beauty parlours and hair salons. Scarcity of Housing in Serangoon Gardens Given the popularity of the estate, housing availability is scarce in Serangoon Gardens. This is especially so when we consider that most of the houses in the estate are landed homes. Currently, landed homes are high in demand, with a low supply. As a result, landed homeowners possess strong holding power, with the median price for a house in Serangoon Gardens in 2024 costing $4.62m, making it inaccessible for most homebuyers. With landed houses being scarce, costly, and mostly out of reach for most of us, we automatically look for non-landed private property options in the area. However, a search in the Serangoon Gardens estate would show that there are few condominium or private apartments. Table 1: Non-landed private projects in Serangoon Garden Estate (<500m of Serangoon Garden Circus) Source: PropertyGuru, ERA Research and Market Intelligence For those looking for a private property close to Serangoon Gardens, a fantastic place to look would be its sister neighbourhood of Lorong Chuan. Lorong Chuan – An Alternative Lorong Chuan is a subzone and precinct that neighbours the Serangoon Gardens estate. The precinct is named after a road bearing the same name, which connects the Central Expressway to Serangoon Gardens. It is considered a desirable location to live in by Singaporeans and foreigners alike, for three notable reasons. Firstly, it is close to Serangoon Gardens and Serangoon Central, as well as Bishan and Toa Payoh towns, offering residents of the precinct a wealth of amenities and conveniences. Secondly, the precinct is also serviced by Lorong Chuan MRT, one stop away from Serangoon and Bishan MRT stations – major interchanges on the North-South and North-East lines respectively. Finally, there are a variety of condominium projects here that are allow living near the landed estates of Serangoon Gardens and Braddell Heights at a more affordable price point. Price Growth  Table 2: Non-landed private projects in Lorong Chuan (within <500m of Lorong Chuan MRT) Source: PropertyGuru,

LTV Cooling Measure for HDB Flats in 2024, Plus More Grant Support for Low-to-Middle Income First-Time Buyers The Ministry of Development (MND) and Housing Development Board (HDB) have jointly announced a set of cooling measures for the HDB resale market and additional grants to provide further support to lower-to-middle income first-time home buyers.  Adjustment of Loan-To-Value limit for HDB loans With effect from 20 August 2024, the Loan-to-Value (LTV) limit for HDB loans will be lowered from 80% to 75%, akin to mortgage loans granted by financial institutions. The revised HDB LTV limit will apply to complete resale applications received by HDB on or after 20 August 2024. A complete resale application is one where HDB has received both the sellers’ and buyers’ portions of the application. Additional Enhanced CPF Housing Grants (EHG) for lower income families and singles Separately, to provide more support to lower-to-middle income first-time home buyers, the Government will increase the Enhanced CPF Housing Grant (EHG) quantum for new and resale flats to support first-time home buyers. The EHG will be increased by up to $40,000 for eligible first-timer families, from the current maximum grant amount of $80,000, up to $120,000. Additionally, EHG for eligible first-timer singles will increase by up to $20,000, from the current maximum grant amount of $40,000 to $60,000. This is the fourth cooling measure targeted at the HDB market since 2021. The first cooling measure was in December 2021, where LTV for HDB loan was lowered from 90% to 85%. The LTV limit was subsequently reduced to 80% in September 2022. Table 1: Cooling Measures Since 2021 Source: MND, ERA Research and Market Intelligence Possible factors behind the cooling measure implementation The lower LTV has been put in place as a direct measure to cool the HDB resale market. Here are three key metrics behind the implementation of today’s cooling measure.  Between 2Q 2020 (start of pandemic) and today, the HDB Resale Price Index (RPI) rose a staggering 42.5%. The number of resale applications have also trended upwards, reporting a 4.0% growth quarter-on-quarter (q-o-q) and 12.9% year-on-year (y-o-y) growth.  Chart 1: HDB RPI and Resale Applications Source: HDB, ERA Research and Market Intelligence The most crucial metric would be the number of million-dollar flats resold. In 2020, the market saw only 82 of such flats. But in just first seven months of 2024, we have seen 539 million-dollar flats in the market. Among which, 13 of these transactions were at least $1.5 mil or higher. The September 2022 cooling measure requires private property owners to wait-out for 15 months after selling their property before they can buy a non-subsidised HDB resale flat. Between 3Q 2022 and 4Q 2023, the resale market saw an average of 112 million-dollar flat transactions each quarter.  By 1Q 2024, coinciding with the first batch of private property owners completing their 15-month wait-out period, the number of million-dollar flat transactions surged to 183, followed by 236 transactions in 2Q 2024. Chart 2: Million-dollar HDB flats Source: data.gov.sg as at 20 Aug 2024, ERA Research and Market Intelligence How will the lower LTV affect homebuyers? With a lower LTV in place, today’s buyers are expected to fork out a higher deposit. To illustrate, we have provided the following scenarios to help buyers understand the implications of lower LTV.  In both Example 1 and 2, the buyers have combined CPF savings of $150,000, which will require no cash top up for the deposit when buying a 4-room flat. But if they decide to buy a 5-room flat, they will need to top up $20,000 in cash to meet the shortfall in deposit. In the case of these examples, the cash outlay is reasonably manageable by most buyers today. Example 1: Buying a 4-room HDB flat with sufficient CPF to cover the excess deposit Source: data.gov.sg as at 20 Aug 2024, ERA Research and Market Intelligence Example 2: Buying a 5-room HDB flat with insufficient CPF to cover the excess deposit Source: data.gov.sg as at 20 Aug 2024, ERA Research and Market Intelligence However, looking at the example below illustrates a possible cash outlay that many buyers of million-dollar flats are facing. Example 3: Buying a million-dollar 5-room HDB flat with insufficient CPF to cover the excess deposit Source: ERA Research and Market Intelligence Many of these buyers already need to pay a high Cash-Over-Valuation (COV) amount and may need to provide even more cash if they don’t have sufficient CPF funds to cover the higher deposit.  Which buyers are affected by this LTV change? We do not expect this change to affect a large proportion of HDB resale buyers since many of them are financially prudent. But there could be a small group of buyers who may be affected by this change.  EHG to increase, offering support to first-time homebuyers For the eligible Singaporeans, the EHG will be revised to provide additional support for lower-to-middle income households buying new or resale flats. The maximum EHG for First-Timer Families and Singles, depending on monthly household income, will offer them greater help in managing the higher deposit required with the lower LTV limit.  Comparing the current and revised EHG, the lower band of household income will see a significant increase in grants. For First-Timer families that earn less than $5,000 per month, the revised grants will amount to between 40% and 50% more than before. This will provide substantial supports to lower-to-middle income households looking to buy their first home.   Chart 3: EHG for Eligible First-Timer Families Source: MND, ERA Research and Market Intelligence Chart 4: EHG for Eligible First-Timer Singles Source: MND, ERA Research and Market Intelligence ERA’s closing comments Through the implementation of this new cooling measure, it is apparent that the Government recognises financing as an important factor in managing financial prudence among homebuyers. By lowering the LTV for loans granted by the HDB (which are cheaper at 2.6% compared to bank loan rates), it may indirectly compel buyers to be more conservative when making their offers to

TDSR, MSR and LTV: How Do They Promote Responsible Borrowing? For almost anyone doing it for the first time, buying a home in Singapore can be a confusing process. Throw in a bunch of acronyms, like ABSD (Additional Buyer’s Stamp Duty) and MOP (Minimum Occupation Period), and things can get baffling real quick. However, if you’re intending to take out a loan on a new home purchase, two terms that you’ll absolutely need to know are TDSR and MSR. In their full form, TDSR stands for ‘Total Debt Servicing Ratio’, whereas MSR means ‘Mortgage Servicing Ratio’, and they’re both Government initiatives to promote responsible borrowing. Below, we explain how TDSR and MSR came about, their purpose, and how to determine your housing affordability using both ratios. What exactly are TDSR and MSR? And how did they come to be? Introduced by the Monetary Authority of Singapore (MAS) in 2013, the TDSR is a framework applying to all property loans extended by banks to borrowers. Its rollout is to promote prudency amongst individuals taking loans, so that they don’t end up borrowing more than they could afford. Therefore, the TDSR, which limits debt repayments to a certain percentage of gross monthly income, is first and foremost a safety net. When the TDSR was first introduced in 2013, borrowers were allowed to spend up to 60% of their gross monthly income on loan servicing. Subsequently, that limit was tightened to 55% in 2021. Put differently, this means that under TDSR guidelines, a borrower should have a total debt value of under 55% of his or her monthly salary to be able to take out a mortgage. Similarly, for the MSR, it places a cap on the percentage of monthly income that borrowers can use for mortgage repayments. In 2013, the MSR threshold was set at 30% for HDB flat purchases that are financed by bank loans, and it has stayed that way since. How are TDSR and MSR applied differently for home purchases? If there’s a key difference between TDSR and MSR that’s worth highlighting, it’s that TDSR applies to all types of housing loans, whereas MSR applies only to loans for buying an HDB flat OR an Executive Condominium (EC) that still hasn’t completed its MOP. Hence, supposing that you’re a homebuyer who wishes to take out a home loan for an HDB flat or EC purchase, you’ll have to comply with both the MSR and TDSR limits.  The differences of both ratios are summarised in the table below. Table 1: Summary of the differences between TDSR and MSR TDSR MSR Definition Refers to the portion of a borrower’s gross monthly income that goes towards repaying the monthly debt obligations, including the loan being applied for Refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans, including the loan being applied for Properties that this loan applies to All property types HDB flats and ECs only Threshold 55% of borrower’s gross monthly income 30% of borrower’s gross monthly income Debt Obligations included All debt obligations (e.g. Car loans, student loans) Only property loans (Including the one being applied for) How it is calculated TDSR = (Total monthly debt)/(Gross monthly income) x 100% MSR = (Total monthly mortgage repayment(s))/(Gross monthly income)  x 100% It’s also worth bringing up (again) that both TDSR and MSR account for different financial considerations. TDSR factors in all of a borrower’s unsettled debt, including loans taken out for housing, cars, education, credit cards, and so forth. In comparison, MSR is more straightforward as it’s solely calculated on a borrower’s monthly income. For borrowers buying an HDB or EC unit, their household monthly income will first be assessed using the MSR on their loan quantum to calculate the maximum amount they can repay monthly. Thereafter, buyers will be further subject to a second round of assessment, which will consider all their debt repayments are within the TDSR limits. Should the borrowers have outstanding debts such as car loans, it may affect the amount they borrow and they may not get the maximum MSR loan amount. How do you calculate MSR based on your household income? In general, a borrower’s MSR can be derived by dividing their total monthly mortgage repayments by their gross monthly household income. Assuming Party A has a gross monthly income of $10,000, his MSR calculations would be so… $10,000 x 30% = $3,000 In another scenario, if Party A has an existing debt of $4,000 and a gross monthly income of $10,000, his MSR calculations would be so… Maximum MSR loan amount = $10,000 x 30% = $3,000 Maximum TDSR loan amount = $10,000 x 55% = $5,500 Maximum MSR loan amount that can be taken to meet TDSR limit = $5,500 – $4,000 (Existing debt) = $1,500 In other words, even though Party A’s maximum mortgage affordability is $3,000 (based on the current MSR threshold of 30%), their existing debt of $4,000 limits their borrowing capacity to just $1,500. To gauge the estimated loan quantum a household can secure based on MSR, one can refer to the sensitivity analysis table below. With a monthly household income of $16,000, a family can afford a home of up to $1.01mil, which works out to the price of a 2-room condo in the OCR. Table 2: MSR Sensitivity Analysis- Based on Value Of Property on Household Income and Mortgage Rates for a 25 Year Loan Interest Rates Interest Rates Interest Rates Interest Rates Household Income Monthly Payment 3.00% 3.50% 4.00% 4.50% $10,000 $3,000 $633,000 $600,000 $569,000 $540,000 $11,000 $3,300 $696,000 $660,000 $626,000 $594,000 $12,000 $3,600 $760,000 $720,000 $683,000 $648,000 $13,000 $3,900 $823,000 $780,000 $739,000 $702,000 $14,000 $4,200 $886,000 $839,000 $796,000 $756,000 $15,000 $4,500 $949,000 $899,000 $853,000 $810,000 $16,000 $4,800 $1,013,000 $959,000 $910,000 $864,000 $17,000 $5,100 $1,076,000 $1,019,000 $967,000 $918,000 $18,000 $5,400 $1,139,000 $1,079,000 $1,024,000 $972,000 $19,000 $5,700 $1,202,000 $1,139,000 $1,080,000 $1,026,000 $20,000 $6,000 $1,266,000 $1,199,000 $1,137,000 $1,080,000 How do you calculate TDSR? Similar to MSR, it’s possible to derive a borrower’s TDSR with