New measures to stabilise HDB resale market

The government has introduced further measures to stabilise the HDB resale market.

The maximum tenure for HDB housing loans will be reduced from 30 years to 25 years.

It’s aimed at ensuring financial prudence in the purchase of public housing and discourage over-consumption.

The Mortgage Servicing Ratio will also be reduced from 35 per cent to 30 per cent of the borrower’s gross monthly income.

In tandem, the Monetary Authority of Singapore will also make similar arrangements for the tenure of new housing loans and re-financing facilities granted by financial institutions for the purchase of HDB flats.

Separately, Singapore permanent resident households with no citizen owner will have to wait three years from the date of obtaining PR status before they can buy a resale HDB flat.

Previously, they can buy a resale flat immediately after obtaining their PR status.

This will apply to resale applicants received from 5.30pm Tuesday.

Source : Channel NewsAsia – 27 Aug 2013

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