Monday, 8 October 2012

Property News : I was correct !!!!!

On 5th October, Friday, the Monetary Authority of Singapore (MAS) announced that it was capping the length of a home loan at 35 years.
With effect from 6th October, 2012:
1. All residential property loans will be subjected to a maximum of 35 years loan tenure, including HDB mortgage loan tenures.
2. Tighter rules will apply to borrowers taking loans longer than 30 years, or who want to have their loan periods extend beyond the retirement age of 65.
3. If they already have an existing mortgage and want to take another one that require these tighter rules for another property, the cash down payment is 60 per cent, instead of the current 40 per cent.
4. Same rules apply for refinancing loans.
5. Non-individual borrowers now subject to 40% loan limit (down from 50%)
See my blog post on 24 Sept 2012 urging the MND minister to impose similar measures, looks like MAS did it.

Not drastic measures, but in the right direction, a correction in the property prices is needed to ensure that the increase in property prices over the years do not outgrow the increase in real wages!!!

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