Property Loans

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...

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...

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...

New housing loan applications fall 30% for DBS, OCBC in Q3

Following the announcement of new property loan curbs in June, Singapore banks DBS and OCBC said new housing loan applications have fallen 30 per cent in the third quarter. Still, both banks expect to continue to see positive loans growth, as previously contracted commitments are still in the loans pipeline. However, OCBC said this momentum could taper off in the second half of next year. The bank...

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...

New home loan curbs: Bigger impact on resale market than on older buyers

The consensus among property watchers appears to be that older buyers will be worst hit by the new home loan curbs, especially those in their 40s and 50s, but the impact of the latest cooling measures will likely be felt more acutely in the resale market. Certainly, the mathematics will show older borrowers to be at a disadvantage, everything else being equal. But everything else is not equal. The...

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...

Showflats still buzzing despite loan restrictions

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...

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