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MAS Restricts Loan Tenure for Residential Properties

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This will not soften demand, nor price of private property here.

 

Foreign demand (and money) will not be impacted by limits set on bank loan tenure.

They more sensitive to forex and borrowing interest rate.

 

The masses who will be impacted most would be the Gen-Y getting married and setting up families.

Shorter loan tenures will limit the size, type and location of private properties that they can afford to buy.

 

So good luck to the younger Singaporeans!

The HNW FTs coming in will continue to have a field day, parking their monies into SG properties.

 

 

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the extra 20% cash upfront

 

Sorry I don't get it. Why 20% extra for new properties? Most loans are max 30 years anyway.

Edited by Fourth

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Sorry I don't get it. Why 20% extra for new properties? Most loans are max 30 years anyway.

 

Loan tenure + age < 65

 

If More than 65, need to fork out 40% cash + cpf.

 

Old rule is 20% cash + cpf regardless of loan tenure for 1st property

 

So 20% more under new rule.

 

 

Edited by Icedbs

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Sorry I don't get it. Why 20% extra for new properties??

 

Isn't this 20% extra, or did I interpret wrongly?

 

10 In addition, MAS will lower the LTV ratio for new residential property loans to borrowers who are individuals, if:

 

the tenure exceeds 30 years; or

the loan period extends beyond the retirement age of 65 years.

For these loans, the LTV limit will be:

 

40% for a borrower with one or more outstanding residential property loans3; and

60% for a borrower with no outstanding residential property loan.

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Isn't this 20% extra, or did I interpret wrongly?

 

10 In addition, MAS will lower the LTV ratio for new residential property loans to borrowers who are individuals, if:

 

the tenure exceeds 30 years; or

the loan period extends beyond the retirement age of 65 years.

For these loans, the LTV limit will be:

 

40% for a borrower with one or more outstanding residential property loans3; and

60% for a borrower with no outstanding residential property loan.

 

I guess for those who bought, the sales and purchase agreement should be dated before 6th Oct.

 

2 The rules will apply to new loans granted to individuals and non-individual borrowers, by financial institutions regulated by MAS, for the purchase of residential property, if the date when the option to purchase was granted or, where there is no option to purchase, the date of the sale and purchase agreement, is on or after 6 October 2012. For re-financing facilities, the rules will apply where the application date of such facilities is on or after 6 October 2012.

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This rule favours the rich and foreigners who do not depend much on loans. The rich will become richer.

 

Those with existing homes will be reluctant to sell their homes if the new new purchases will mean much higher installments. So with resale supply drying up how on earth will this CM reduce prices? It may just have the opposite impact while widening the gap between the rich & middle income

 

 

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I guess for those who bought, the sales and purchase agreement should be dated before 6th Oct.

 

2 The rules will apply to new loans granted to individuals and non-individual borrowers, by financial institutions regulated by MAS, for the purchase of residential property, if the date when the option to purchase was granted or, where there is no option to purchase, the date of the sale and purchase agreement, is on or after 6 October 2012. For re-financing facilities, the rules will apply where the application date of such facilities is on or after 6 October 2012.

thanks for sharing, I didn't know it is based on sales & purchase agreement date. [rolleyes]

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Sure. Just discussing and sharing. One thing for sure... many agents and banks must be working hard tonight.

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Sure. Just discussing and sharing. One thing for sure... many agents and banks must be working hard tonight.

they should be having supper now (6 Oct, new rule kick in) [laugh]

 

good nite!

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What a coincidental timing.. my sale completion is 15 Oct which is 10days from now.. was deciding to see see look look at other property after that.. timing for latest cooling measure quite good for me.

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What a coincidental timing.. my sale completion is 15 Oct which is 10days from now.. was deciding to see see look look at other property after that.. timing for latest cooling measure quite good for me.

You will be dissapointed if you expect prices to come down. They may go up instead with less supply in resale market.

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Skies Miltonia at Yishun soft launch today. Agent sms over 280 units sold, wonder how many will cancel their bookings tomorrow [bigcry]

Heard its average psf priced @ $1.1k :o

Edited by Zze121

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Heard its average psf priced @ $1.1k :o

 

Wow ! That's pretty high for a location that doesn't have much amenities and isn't near to MRT.

 

The view is very nice but need to get high floor as the entire area is zoned for residential and right in front of it is the Miltonia.

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thanks for sharing, I didn't know it is based on sales & purchase agreement date. [rolleyes]

 

It is based on date of Option to Purchase or, in the absence of option to purchase, then the sales and purchase agreement on/and or after 6 Oct applies.

 

Guess there will be ppl affected becos of the additional 20% cash upfront (40%) should their loan tenure exceeds 30 years beyond age 65......

 

 

 

 

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Wow ! That's pretty high for a location that doesn't have much amenities and isn't near to MRT.

 

The view is very nice but need to get high floor as the entire area is zoned for residential and right in front of it is the Miltonia.

 

At night that place is very bright due to the golf course. Not good for people who hates light pollution.

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GG to those who wanna buy new house with the skyrocketing prices

 

Haha are you one of them?

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Wow ! That's pretty high for a location that doesn't have much amenities and isn't near to MRT.

 

The view is very nice but need to get high floor as the entire area is zoned for residential and right in front of it is the Miltonia.

Two of the closest stations near to the upcoming Skies Miltonia will be Lentor and Spring Leaf stations.

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This will not soften demand, nor price of private property here.

 

Foreign demand (and money) will not be impacted by limits set on bank loan tenure.

They more sensitive to forex and borrowing interest rate.

 

The masses who will be impacted most would be the Gen-Y getting married and setting up families.

Shorter loan tenures will limit the size, type and location of private properties that they can afford to buy.

 

So good luck to the younger Singaporeans!

The HNW FTs coming in will continue to have a field day, parking their monies into SG properties.

so true... rich become richer... everyone else GG

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