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PR Newswire
06-11-2012, 09:46 AM
DSR should not be fixed. We should look at absolute numbers, and also factor in the family needs and spending habits. Examples:
1. Household income of $4000. Family size of 2 adults, 2 children, 2 elderly. Monthly expenses $3900. Pay housing loan thru CPF only ($0 cash servicing mortgage) 35% DSR is probably too high.
2. Household income of $4000. Double income couple with no kids. Frugal and takes public transport (no car loan). Monthly expenses of $2000. DSR of 50% is probably acceptable.
3. Household income of $20,000. Family of 2 adults and 2 children. Monthly expenses $8000. DSR 60% is comfortable.
The bottom line is that if we increase the delta between what we earn and what we spend (either by earning more or spending less), we can invest the difference, or be comfortable with a higher DSR.
1. Household income of $4000. Family size of 2 adults, 2 children, 2 elderly. Monthly expenses $3900. Pay housing loan thru CPF only ($0 cash servicing mortgage) 35% DSR is probably too high.
2. Household income of $4000. Double income couple with no kids. Frugal and takes public transport (no car loan). Monthly expenses of $2000. DSR of 50% is probably acceptable.
3. Household income of $20,000. Family of 2 adults and 2 children. Monthly expenses $8000. DSR 60% is comfortable.
The bottom line is that if we increase the delta between what we earn and what we spend (either by earning more or spending less), we can invest the difference, or be comfortable with a higher DSR.