Singapore loan curbs to cool heated real estate market

Reading Time: 1 minute

SingaporeSingapore in a latest move to cool down its property market has introduced new rules governing how financial institutions grant property loans to individuals, effective June 28.

The rules have been designed to discourage lenders from granting property loans that result in individual borrowers using more than 60 per cent of their monthly incomes to service debt.

This will apply to loans for the purchase of all types of property, loans secured on property, and the re-financing of all such loans, the Monetary Authority of Singapore said.

When working out loans to be granted to home buyers, banks will have to consider the monthly repayment for the property loan that the borrower is applying for, plus all his other outstanding debt obligations.

The city state’s government over concerns that the real estate market in the country may overheat already introduced measures earlier this year to curb down property buying, including an increase in stamp duties for home buyers by 5 to 7 percentage points.

Private residential property prices rose to a record in the three months through March 2013. Singapore property prices are among the highest globally.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Singapore in a latest move to cool down its property market has introduced new rules governing how financial institutions grant property loans to individuals, effective June 28.

Reading Time: 1 minute

SingaporeSingapore in a latest move to cool down its property market has introduced new rules governing how financial institutions grant property loans to individuals, effective June 28.

The rules have been designed to discourage lenders from granting property loans that result in individual borrowers using more than 60 per cent of their monthly incomes to service debt.

This will apply to loans for the purchase of all types of property, loans secured on property, and the re-financing of all such loans, the Monetary Authority of Singapore said.

When working out loans to be granted to home buyers, banks will have to consider the monthly repayment for the property loan that the borrower is applying for, plus all his other outstanding debt obligations.

The city state’s government over concerns that the real estate market in the country may overheat already introduced measures earlier this year to curb down property buying, including an increase in stamp duties for home buyers by 5 to 7 percentage points.

Private residential property prices rose to a record in the three months through March 2013. Singapore property prices are among the highest globally.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid