Singapore’s swap offer rate (SOR) — a rate signifying the synthetic cost of borrowing Singapore dollars, by borrowing US dollars at similar maturity and exchanging them for Singapore dollars — turned negative last week as funds seeking safety flooded the local market. This resulted in several mortgage brokers receiving orders from DBS Group and Maybank to stop offering home loans pegged to SORs,...
Housing Loans
Total bank lending in Singapore amounted to S$374.3 billion last month, up 3 per cent from the previous month, according to data released yesterday by the Monetary Authority of Singapore (MAS). On a year-on-year basis, total bank lending surged 26 per cent on the back of robust economic growth. Housing loans rose 1.3 per cent to S$121.3 billion last month from S$119.7 billion in May. The MAS also, for...
In response to feedback from the business community, the Monetary Authority of Singapore has decided to do away with a regulatory loan-to-value (LTV) limit for non-individuals seeking to borrow money secured on a residential property. This means businesses - starting from yesterday - will not be subjected to a 50 per cent limit for a loan obtained from the equity value of their existing property...
Home loan rates are back in the news. In the latest move to maintain loan volumes in an uncertain market, at least two Singapore banks have reportedly been dangling some of the lowest rates, currently pegged at about 0.2 per cent to market benchmarks, on selected properties. The offered mortgage rates are pegged against two commonly used benchmark interest rates. These are the Singapore interbank lending...
Most indicators are pointing to a gradual moderation in the property market here, but latest figures showing a 1.4 per cent month-on-month growth in home loans have some analysts wondering if the outlook is quite so clear cut. Latest figures from the Monetary Authority of Singapore showed that building and construction loan growth in May fell 13 per cent month-on-month to S$59 billion. New private home...
Home loans have been a major driver of the lending business for the three local banks, but they could also be a drag in the event of a downturn in the property market, according to global debt watcher Fitch Ratings. Fitch Ratings estimates that home mortgages and construction-related loans account for 50 per cent, or half, of the three local banks' total loan books. The latest figures from the Monetary...
Many home buyers do not fully understand the risks when they over-stretch themselves to buy their dream home. From time to time, you hear of genuine prospective buyers who face great difficulty surmounting the higher loan-to-value ratio. If they can barely overcome the first hurdle, how much more difficulty will they have in meeting mortgage payments when interest rates shoot up? The proposal by the...
Financial institutions should provide a fact sheet in a standardised format when marketing loans for residential property to consumers, the Monetary Authority of Singapore (MAS) said on Wednesday. It has issued a consultation paper seeking feedback on what exactly the fact sheet should contain. A residential property loan is a long-term financial commitment. As the current low global interest rate...
First-time home buyers are getting lots of help these days. Lenders, like OCBC Bank, have made the language used in home mortgage-related documents simple and plain. OCBC has rewritten in plain English its documents related to securing HDB home loans. The bank secured the so-called "Crystal Mark" granted by London-based Plain English Campaign to companies that are able to effectively communicate with the...
How to shop for a housing loan under today's interest rate, housing conditions? How do you assess your package? How much should you borrow? Following the property cooling measures in January, home buyers have become more cautious in their property search. However, buying interest has remained intact given the strong economic outlook, ample liquidity and low interest rates. With the rising cost of living,...