Finance

Analysts say tougher for 60-year leasehold owners to apply for loans

Buyers of 60-year leasehold properties might find it a challenge to apply for loans. While some banks are willing to lend, potential buyers may have to borrow less or pay off these loans faster. But analysts said banks may have to re-think their home loan strategy as more of such sites make their way into the market. The land at Jalan Jurong Kechil, which closed tender on November 15, will be the first...

Refinancing home loans no longer attractive after 35-year cap: analysts

The current low interest rate environment has led to a trend of home buyers refinancing their loans to take advantage of promotional rates. Most analysts agree that it may no longer be attractive for investors with longer loan terms to do so, given the 35-year cap on new home loans. Most home buyers refinance their mortgages in the third or fourth year of their loan repayment period. This as interest...

MAS restricts loan tenure for residential properties

The Monetary Authority of Singapore (MAS) will restrict the tenure of loans granted by financial institutions for the purchase of residential properties, effective from 6 October. MAS' move is part of the government's broader aim of avoiding a price bubble and fostering long-term stability in the property market. The new rules impose an absolute limit of 35 years on the tenure of all loans for...

Longer mortgage tenures could have adverse implications

Longer mortgage tenures could have adverse implications for the property market, borrowers and banks if it becomes more widespread. Deputy Prime Minister Tharman Shanmugaratnam gave the assessment in a written reply to Parliament on Monday. He added that the government will continue to closely monitor the property market. Stretching a home loan out over 50 years does translate to a lower monthly...

Longer mortgage tenures have implications for property market: DPM Tharman

Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said longer mortgage tenures have implications for the property market. In a written reply to parliamentary questions, Mr Tharman said they give buyers the impression of improved housing affordability. He said the reality is that of a larger long term debt service burden. United Overseas Bank drew controversy when it launched a new...

Home buyers urged to do homework before taking up loans

Home buyers should consider their financial situation carefully before committing to a home loan in the market. This, according to experts who warn buyers against being swayed by new loan offerings. United Overseas Bank (UOB) drew controversy recently when it introduced a new home loan spanning 50 years, the longest available in the market - which it said is geared towards young executives. On Sunday,...

Banks not allowed to approve home loan applications at temporary sites

The Monetary Authority of Singapore (MAS) says banks are not allowed to approve home loans at temporary locations, whether in-principle, verbal or in writing. MAS says while the regulator's rules allow banks to set up a temporary location at a property launch site to receive applications for residential property loans, the loan must be approved or rejected at the bank's branch. A spokesperson said a...

Instant home loan decision at showflats

Potential home buyers who are visiting showflats can now receive an instant decision on their home loan application on-site under a new service introduced by United Overseas Bank (UOB) on Thursday. UOB said home buyers will be able to find out the status of their loan application as soon as they finish keying in their personal and financial details into UOB's automated approval system, which can be...

Homebuyers likely to opt for shorter term mortgage

Homebuyers in Singapore will likely opt for mortgage loans with shorter repayment periods. That's despite the availability of new home loans that offer up to 50-year tenors. Experts said more are taking into account their retirement age and interest costs when servicing their loans. Currently Singapore banks are offering home loans with a maximum term of 35 to 40 years with age capped at 70 to 75. UOB...

Requesting for mortgage debt forgiveness – essential steps you should follow

Mortgage debt seems to be the biggest debt for the Americans. While talking about mortgage debt forgiveness, you need to know that every lender will not agree to forgive your debt. However, there are few lenders who will agree to forgive mortgage-debt. The mortgage lender will forgive only a small portion of your debt. With proper budgeting and by keeping a track on your spending, you will be able to...

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