Finance

A deleveraging nudge from fine-tuning of TDSR rules on refinancing

The Monetary Authority of Singapore’s recent fine-tuning of refinancing rules relating to the total debt servicing ratio (TDSR) governing property loans is a strong nudge towards deleveraging. Stretched borrowers who hold investment properties will have to think about actively managing down their debt, especially as rental income is under pressure and economic growth is easing. Far from stimulating...

MAS adjusts TDSR rules for refinancing; cooling measures to remain

THE Monetary Authority of Singapore (MAS) on Thursday refined rules behind the total debt servicing ratio (TDSR) framework that would allow overleveraged borrowers to refinance their housing loans, subject to a prescribed debt restructuring plan. "The refinements... do not represent a relaxation of property market cooling measures," the MAS said in a press statement, noting that these would allow...

UOB suspends London property loans after Brexit

United Overseas Bank (UOB), Singapore's third-largest lender, has suspended its loans programme for London properties in the wake of uncertainties caused by Britain's vote to leave the European Union. UOB would be among the first banks in Singapore to turn cautious on such lending, even though it is not a large amount, as Brexit spooked global markets and pushed the pound to multi-year lows. "We will...

Applying for a loan? Find out your credit standing

Starting next month, consumers applying for a new credit facility with a bank or financial institution will be told they can get a free copy of their credit report, regardless of the outcome of the application. The move is to make it easier for individuals to review their credit standing, said Credit Bureau Singapore (CBS) in a press release issued on Monday (Mar 21). Consumers can currently request...

1 in 5 HDB loan applicants asked for larger loans: MND

The Housing and Development Board (HDB) approved 200,000 applications for an HDB Loan Eligibility letter between 2012 and 2015 and of these, one in five, or 40,000, appealed for a larger housing loan. Appellants generally asked for a larger loan so they could widen their flat choices, without specifying a loan quantum, Minister for National Development Lawrence Wong said in a written parliamentary...

Manage the impact of interest rates

After nearly a decade of lingering at low levels, interest rates have been on the rise for the past year, and economists had forecast continuing increases. Over the past several weeks, however, rates have belied those expectations and flattened or even declined. Since interest rates have a large impact on almost everyone’s pocketbook, it is timely to look at how to manage the impact of those rate...

More facing problems refinancing homes due to TDSR

Home owners looking to refinance their properties are finding it increasingly difficult to do so against the backdrop of falling property prices, stringent definitions of what constitutes income and the tedious paperwork involved. Conservative property valuations also mean that only smaller loan amounts can be refinanced. With rising interest rates, more home owners are opting to switch from floating to...

3-month Sibor crosses 1.25% mark

A key benchmark interest rate used to price home loans rose again on Wednesday (Jan 13), crossing the 1.25 per cent mark to reach a level last seen about seven years ago. According to data from the Association of Banks in Singapore, the three-month Singapore Interbank Offered Rate (Sibor) was fixed at 1.252 per cent on Wednesday, up from 1.249 per cent on Tuesday. The three-month Sibor stood at 1.185...

Singapore interest rates to rise following Fed Hike: Economists

Businesses and homeowners in Singapore should expect to pay higher interest rates in the coming year. That is according to economists following the US Federal Reserve's decision overnight (Dec 16) to raise its benchmark rate by one quarter of a percentage point to between 0.25 per cent and 0.50 per cent. Economists said the Fed's first interest rate hike in nearly a decade is a sign of confidence...

Home owners should prepare for higher mortgage rates: Analysts

Mortgage rates have risen since the start of the year, and analysts have said home owners should brace themselves for further increases. At the beginning of 2015, home buyers in Singapore could get loans that start at 1.6 per cent in the first year. That rate has been creeping up, and the figure is now around 2 per cent, for rates pegged to three-month Singapore Interbank Offered Rate (SIBOR), said CEO...

Compare listings

Compare