Property: Age-Based Loan Tenure Restrictions #173
Description
Summary
Add age-based loan tenure restrictions to ensure realistic loan scenarios. Singapore has strict rules on maximum loan tenure based on borrower age, which directly affects loan quantum and affordability.
Why This Matters
- Older borrowers have shorter maximum loan tenure
- Shorter tenure = higher monthly payments = lower affordability
- LTV (Loan-to-Value) may also be reduced for older borrowers
- Stress testing at 4% is required in certain scenarios
Loan Tenure Limits
| Property Type | Maximum Tenure | Age Limit |
|---|---|---|
| HDB (HDB loan) | 25 years | 65 - age of youngest borrower |
| HDB (Bank loan) | 30 years | 65 - age OR 30 years (whichever lower) |
| Private (≤30 yrs old) | 35 years | No restriction |
| Private (>30 yrs old) | 35 years | 75 - age of youngest borrower |
LTV Adjustments by Age
When loan tenure + borrower age exceeds certain thresholds:
- LTV reduced by 5% (e.g., 75% → 70%)
- MSR/TDSR stress tested at 4% instead of actual rate
Thresholds
- HDB: Tenure + age > 65
- Private (≤30yr tenure): Tenure + age > 65
- Private (>30yr tenure): Tenure + age > 75
Proposed Data Fields
interface BorrowerAgeConfig {
borrower1DateOfBirth: string // For age calculation
borrower2DateOfBirth?: string // For joint borrowers
}
// Computed
interface LoanConstraints {
maxTenureYears: number // Based on age
adjustedLTV: number // May be reduced for older borrowers
isStressTestRequired: boolean // If tenure + age > threshold
stressTestRate: number // 4% for stress test
}UI Integration
- Age input for each borrower (or derive from linked income record)
- Warning when tenure exceeds age-based limits
- Auto-suggest maximum allowed tenure
- Display stress-tested MSR/TDSR alongside actual ratios
- LTV adjustment indicator when applicable
Acceptance Criteria
- Borrower age can be entered or derived from profile
- Maximum tenure auto-calculated based on age and property type
- Warning shown if user enters tenure exceeding limit
- LTV adjustment applied when threshold exceeded
- Stress-tested MSR/TDSR displayed when applicable
- Joint borrower scenario uses youngest borrower's age
References
Labels
property, enhancement, P1