A rate rise squeezes the payment and borrowing room; the price effect is not clear

FreeFlowchart

Diagram: dashed arrows are links the data do not prove

CSV download: members

Source: Loan payments for a S$1,000,000 loan over 30 years; TDSR from MAS; price figures from the URA Property Price Index.

View the data as a table

A rate rise squeezes the payment and borrowing room; the price effect is not clear
Step	Detail	Leads to
Benchmark rate rises	SORA up 3.6 points,. 2021 Q4 to 2023 Q4	Loan payment rises
Loan payment rises	S$1m, 30 years: S$3,216. at 1%, S$4,774 at 4%	Borrowing room shrinks
Borrowing room shrinks	TDSR: 55% of income,. tested at 4% or more	Fewer buyers may qualify
Fewer buyers may qualify	Demand may soften	Effect on prices
Effect on prices	Not clear in the data	What happened 2021 to 2023
What happened 2021 to 2023	Index up 16.1%; growth. slowed, then policy tightened

How interest rates and yields affect property prices

More charts in this topic