Finance

Singapore banks resilient against rising property risk: Fitch

The Republic’s banks are expected to weather the correction in the city-state's home prices as household debts are low relative to assets, Fitch Ratings said in a commentary on Friday (Jan 30). Fitch also said local banks DBS, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) have healthy loss-absorption buffers, which will help them weather a significant rise in credit costs. The...

More homeowners look to refinance loans as SIBOR inches up

More homeowners who took housing loans from banks are now looking for refinancing options. Loan specialists said they have been getting more inquiries since the recent spike in SIBOR (Singapore Interbank Offered Rate). Homeowners - whose mortgages are tied to SIBOR - are now facing higher monthly payments. One of those affected is 30-year-old engineer Lai Ming Kwan, who bought an executive condominium...

SIBOR remains well below historical levels: Analysts

The three-month Singapore Interbank Offered Rate (SIBOR) reached 0.63 per cent on Wednesday (Jan 7), compared to 0.45 per cent on Jan 2. SIBOR is a key benchmark used to determine various lending rates. While the recent increase may signal the end of low interest rates, analysts said that for now, SIBOR remains well below historical levels. At 0.63 per cent, the three-month SIBOR is now at its...

SIBOR rate up slightly on Wednesday

A key interest rate that housing loans in Singapore are pegged to rose marginally on Wednesday (Jan 7), following two days of sharp increases. Bloomberg data showed the three-month Singapore Interbank Offered Rate (SIBOR) was fixed at 0.63707 per cent at 11.30 am on Wednesday, up slightly from Tuesday's fixing of 0.62052 per cent. The interest rate benchmark had jumped 7.4 per cent on Tuesday...

Home owners face higher mortgage payments with rise in SIBOR

Home owners may face higher mortgage payments, following recent hikes in a key benchmark interest rate that housing loans in Singapore are based on. According to data from Bloomberg, the three-month Singapore Interbank Offered Rate (SIBOR) was fixed at 0.62 per cent on Tuesday (Jan 6). This is up from 0.57 per cent on Monday. Last Friday, it was around 0.45 per cent, up from 0.4 per cent in...

Better payouts needed for reverse mortgage scheme for private housing, say analysts

One way to help owners of private housing monetise their property for retirement is to relaunch the reverse mortgage scheme, which was first introduced eight years ago. Although it did not meet with much success at the time, property analysts say more elderly home owners could be attracted to the scheme if it ensures good payouts. Under a reverse mortgage, the owner retains the full lease of the...

Cooling measures hit home loans

Hit by repeated rounds of cooling measures and loan restrictions, the housing market has emerged as a concern for Singapore’s banks, with loans to the sector and new mortgage applications slowing. Housing and bridging loans expanded 7.9 per cent in March to S$168.9 billion from S$156.6 billion a year earlier, central bank data showed yesterday. However, this compares with a compound annual growth rate...

MND to study if reverse mortgages should be provided by private market or govt

The National Development Ministry (MND) will study whether reverse mortgages should be provided by the private market or by the government in future. A reverse mortgage is a loan taken up by the owner using his property as collateral. This loan is then repaid with interest upon termination of the loan, or death, typically from the sales proceeds of the property. In Parliament on Monday, the...

Some major banks welcome move by MAS to ease debt servicing

Several major banks have welcomed the latest move by the Monetary Authority of Singapore (MAS) to make it easier for borrowers to refinance their loans for owner-occupied properties. This is if the property was bought before the Total Debt Servicing Ratio (TDSR) was introduced on 29 June 2013. The framework prevents home buyers from taking a loan if their monthly debt obligations exceed 60 per cent...

MAS relaxes home financing rules for some property buyers

The Monetary Authority of Singapore (MAS) will relax its home financing rules for homebuyers who had committed to residential property purchases before the rules were announced last year. This applies to buyers of private property who had signed an option to purchase the property before June 29, 2013. If they are the occupiers of the property, they will be exempt from the Total Debt Servicing Ratio...

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