Mortgage Servicing Ratio (MSR)
DEFINITION
Mortgage Servicing Ratio, or MSR, is the share of a borrower's gross monthly income that goes toward repaying all existing property loans and the new property loan being applied for. In Singapore, it is capped at 30% and applies only to housing loans for an HDB flat or an executive condominium whose minimum occupation period has not expired. It is calculated by dividing total monthly property loan repayments by gross monthly income and multiplying by 100%.
ELI5
MSR checks how much of your monthly income is used for home loan payments. It helps show whether the loan is still affordable for you.
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