Document-Ready for TDSR (Part One: Proof of Commitments)

One obvious requirement of TDSR-era loan application is that, a lot of paper work has to be submitted to prove your monthly financial commitments shown in your credit bureau record. So mentally prepare yourself for a bit paper work if you plan to apply for a loan either for a property purchase or refinance a current loan.

This guide shares with you what the banks are looking for in a statement. This will help you  tidy up the documents and get a fast response from the banks about your loan application.

  1. Credit card statements: Banks need latest one month statement, and generally the 1st page of your statement will be sufficient showing your name + month of the statement + credit limit + min amount due. Don’t worry about your actual spending as banks use “Min Amount Due” as a commitment.  If you have latest online statement without your name, just snap a copy of your credit card face to prove that the card belongs to you.
  2. Car loan statement: Banks need the Hire & Purchase agreement or latest car loan statement, as they are looking for monthly instalment.
  3. Housing & Equity loan statements: Banks need the latest loan statement and on top of the monthly instalment, the statement has to bear your name or property address to tally the ownership. If you have the latest online statement without your name or property address, any old paper statement bearing the details are OK to use together with the online statement.
  4. Other loans with banks: Again, banks need latest loan statement. These could be the personal loan, renovation loan & education loan, etc.
  5. What if I have terminated/fully settled a facility recently? Some customers simply terminate credit cards as they think by doing so there is no need to provide any credit card statements. But do note that credit bureau record will be updated and known to all banks only one month later. Therefore,  remember to request a letter stating that the facility is closed without any outstanding from the bank if you have recently closed a facility with a bank. Otherwise banks are forced to use credit limits based on your income to estimate your max minimum amount due for a credit card which could be very high. And this could ruin all your plans of property purchase or refinancing.

In conclusion, banks need to know MONTHLY instalment for all the facilities shown in your credit bureau record. And you will need to prove all the figures with the latest statement and online statement is acceptable as long as you are able to prove the statement (without name) belongs to you.