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...
Housing Loans
Despite the new housing loan rules from the Monetary Authority of Singapore (MAS), home buyers are still flocking to condominium showflats, with strong turn-out seen last weekend at Skies Miltonia in Yishun and Riversails at Upper Serangoon, according to The Business Times. 67 percent of units at the 420-unit Skies Miltonia have been taken up. In addition, the developer is offering an 18 percent discount...
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 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...
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 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,...
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...
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...
Whether you are a first-time home-buyer or are looking into investing in a property, securing the right housing loan package to suit your financial need is of utmost importance. In Singapore, the major banks offer highly competitive housing loan interest rates and packages. Understanding the differences between these packages and their impact on your financial commitment will help you decide on the most...
Interest rates in Singapore may rise - from their lowest levels in 40 years - as early as March next year, according to analysts. They say home loan refinancing is surging, but bank profitability and the rising cost of funds offshore may force the banks' hand. Banks could be forced to raise their home loan interest rates as early as six months from now. Low rates have hurt their profitability and they...