| James Kon & Rokiah Mahmud |
AS OF August 10, 2017, local banks and Perbadanan Tabung Amanah Islam Brunei (TAIB) may increase the Total Debt Service Ratio (TDSR) Limits from 60 per cent to a maximum of 70 per cent for loans, to finance the purchase or construction of property.
This move is intended to encourage home property ownership, particularly for borrowers with a net income of BND1,750 and above, in addition to stimulating the domestic property market through increasing bank lending, which can contribute to economic growth in line with achieving the goals of Brunei Vision 2035.
The new updates of the TDSR policy was relayed to the public in a talk yesterday titled, ‘Everything You Need To Know About The Total Debt Service Ratio (TDSR)’, during the AMBD Open Day at the Design and Technology Building in Anggerek Desa.
The talk was delivered by Hanisah binti Abu Bakar and Malcom Liew from AMBD, who explained the objective and benefits of the TDSR to the public in general, in addition to the amendments that have been made since its introduction in 2015.
They also highlighted that, as of November 7, 2017, banks were given the flexibility to exceed the maximum 60 per cent of TDSR policy for certain credit facilities that are subject to certain conditions, namely the property charged must be income-generating and not the sole property of the borrower. In addition, the TDSR policy for individuals with a net monthly income of $10,000 and above will now be subject to the banks’ and finance companies’ internal credit policy. AMBD has also relaxed the limit on banks’ personal loan portfolio, which gives banks more flexibility to extend credit facilities to the household sector.
Among those present at the talk was YB Nik Hafimi binti Abdul Haadii, a member of the Legislative Council (LegCo) and a member of the APEC Business Advisory Council (ABAC).
The AMBD Open Day represents AMBD’s continuing efforts to provide an open dialogue with the public on its roles and responsibilities, which include promoting more awareness of its policies and regulations.
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