Multi-property owners to be hardest hit by the latest MAS property rules

There'll be greater limitations.

According to Knight Frank, investors who have existing property loans and have sought various flexible ways to secure multi-property loans will now face greater limitations to obtain new loans for their next property purchase. 

In particular, middle-income investors who have existing property loans and other non-property debt obligations such as car loans, will be significantly constrained to buy their next property as their TDSR assessment could potentially exceed the 60 per cent threshold stipulated by the MAS.

Here's more from Knight Frank:

For instance, Singapore residents who already have a HDB loan and wish to invest in private property would find it tougher to obtain additional loans. 

Individuals who have a higher proportion of variable income out of their monthly gross income would also face greater constraints to obtain higher loan quantum – their options to buy higher-priced property will be limited.

Families – With the requirement that the mortgagor must also be the owner of the property and subjected to 60 per cent TDSR assessment, parents who have been using their children’s name to buy properties and by pledging themselves as guarantors to seek higher LTV for their children, will now find less room to adopt this approach.

Genuine homebuyers who have no existing property loan or other major loans should be able to obtain their target loan amount for their first property based on the new 60 per cent TDSR assessment.

Cash-rich investors and foreigners who can afford to buy properties with less mortgage exposure are less likely to be affected by the new TDSR framework.