www.propertyguru.com.sg | 30 Aug 2013
Singapore's household debt during the first quarter was relatively high compared to other Asian countries at 77.2 percent of its GDP, revealed a report from Bank of America Merrill Lynch.
It then comes as no surprise that the government has implemented measures to ensure that Singaporean households do not over-borrow, and also cool the HDB resale market, the report added.
It then comes as no surprise that the government has implemented measures to ensure that Singaporean households do not over-borrow, and also cool the HDB resale market, the report added.
| Singapore GDP had been increasing steadily and exponentially these few years. -- GOOGLE PHOTO | For instance, the Monetary Authority of Singapore (MAS) imposed a Total Debt Servicing Ratio (TDSR) framework for all mortgages granted by financial institutions to home buyers. "MAS is mindful of the risks when Singapore interest rates begin |
normalising (i.e. rising), highlighting that an estimated five to ten percent of borrowers have over-leveraged on property purchases," said the bank.
"The Housing & Development Board (HDB) has introduced more measures to cool the resale market for HDB flats. The mortgage servicing ratio (MSR) has been reduced to 30 percent of gross monthly income, down from 35 percent."
Newly-minted permanent residents (PRs) are also now required to wait three years before they are allowed to purchase a resale HDB flat. Previously, they were permitted to buy such homes upon receiving PR status.
"The Housing & Development Board (HDB) has introduced more measures to cool the resale market for HDB flats. The mortgage servicing ratio (MSR) has been reduced to 30 percent of gross monthly income, down from 35 percent."
Newly-minted permanent residents (PRs) are also now required to wait three years before they are allowed to purchase a resale HDB flat. Previously, they were permitted to buy such homes upon receiving PR status.
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