My point: Debt ratio loophole?

Deputy Prime Minister Tharman Shanmugaratnam said the new total debt servicing ratio for property credit will not be extended to other types of loans ("Debt ratio curbs 'won't be widened to non-property loans' "; Monday).

If the Government is concerned about households taking on a greater debt burden than they can afford, why should other forms of loans be considered more benign than property loans?

Also, does this not make it possible for people to game the system by applying for a property loan - reaching their debt ratio limit - and subsequently applying for other loan types (for example, car loans), since applications for the latter are not subject to any curbs?

Tan Teck Leng

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