Serious Car loan rules relaxed

MAS eases rules on motor vehicle financing
http://www.channelnewsasia.com/news/singapore/mas-eases-rules-on-motor/2819122.html

The maximum loan-to-value ratio for vehicles on the open market less than or equal to S$20,000 will be raised from 60 per cent to 70 per cent, and that for vehicles more than S$20,000 will be upped to 60 per cent from 50 per cent.

Runifyouhaveto said:

MAS eases rules on motor vehicle financing
http://www.channelnewsasia.com/news/singapore/mas-eases-rules-on-motor/2819122.html

The maximum loan-to-value ratio for vehicles on the open market less than or equal to S$20,000 will be raised from 60 per cent to 70 per cent, and that for vehicles more than S$20,000 will be upped to 60 per cent from 50 per cent.

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this step taken to inflate the economy as i read that car ownership reflects on the CPI. nicely fitted to make sure sinkies gong gong go borrow more money to buy expensive cars. sadly, the true life of a sinkie being manipulated to help the agenda of MAS.

krafty said:

this step taken to inflate the economy as i read that car ownership reflects on the CPI. nicely fitted to make sure sinkies gong gong go borrow more money to buy expensive cars. sadly, the true life of a sinkie being manipulated to help the agenda of MAS.

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will property loans be next?

Runifyouhaveto said:

will property loans be next?

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Inevitably, PAP will relax those cooling measures to spur demand and prop up the economy to encourage building and construction in time to come. However, unlike car loans, housing values and thus, loans, have to be correlated to real wages and this is where PAP's problems come in as they are unable to bring real wages up due to multitude of reasons (recession, oil glut, global economy headwinds etc) And unlike easing car loans, easing of housing loan measures will bring back dissent and it will be a big topic again in next GE which PAP experienced in 2011 with their worst showing when WP kept drumming up dissatisfaction of the people with high property prices.

Next, easing of cooling measures is a "catch 22" situation, relaxing/removing TDSR, MSR and ABSD first or remove SSD first or remove both at the same time will go counter to what those measures wanted to achieve in the first place. Of course, it must be fair to both sellers and buyers, but i really find it hard to see a balance when relaxing such measures on both sides (sellers and buyers) will not defeat the purpose and intended objectives MAS wanted to achieve in the first place. Perhaps it all depends on how badly MAS wants to reign in capital outflow whereby investors shift to invest and develop overseas, or perhaps PAP knows that sinkies are suckers for properties and any policy changes, sinkies will still gladly accept and say thank you. Who knows...

Just my 2c.

langjeow... debt ratio already sky fark high, ask more suckers to take loan is promoting superman to jump for taller buildings

Desperate move to spin local demand. But that is not gonna help when u hear news talking about retrenchment every single day.

Just when Heng is away the mice are out to play. Unbelievable. MAS is now the new rat hill.

this goes to show how desperate the pappies are to prop up the gdp numbers.

virus said:

langjeow... debt ratio already sky fark high, ask more suckers to take loan is promoting superman to jump for taller buildings

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You will be surprised some potential property buyers can go for 50% down....or more.
Some are just waiting for the measures to be lifted, but will not go in and grab for they are waiting for prices to go south further......

Just a thought there.

PAP is being nice to sinkies. Now more sinkies can own cars and honk for PAP during NDP 2016.

this is just prolonging the inevitable,once household debts and car debts reach stratospheric levels and the interest payments become unteneable,mass sinkies will default on their debts creating a financial crash bigger than 2008 crisis.a trillion dollar explosion threatening to send the whole of south east asia into bankruptcy.better PAP swallow the bitter medicine now and start the process of deleveraging and recession.

frenchbriefs said:

this is just prolonging the inevitable,once household debts and car debts reach stratospheric levels and the interest payments become unteneable,mass sinkies will default on their debts creating a financial crash bigger than 2008 crisis.a trillion dollar explosion threatening to send the whole of south east asia into bankruptcy.better PAP swallow the bitter medicine now and start the process of deleveraging and recession.

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they are prolonging the onset of recession lah. but there will be gong kias that take the baits. once jobless and retrenchment hits the masses. people will not buy or dafault on their loans. causing banks to go bust.



Let them blow up the bubble even bigger. only way to bring down papaya is massive economic hardship for the 70%

hbk75 said:

they are prolonging the onset of recession lah. but there will be gong kias that take the baits. once jobless and retrenchment hits the masses. people will not buy or dafault on their loans. causing banks to go bust.

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Let them blow up the bubble even bigger. only way to bring down papaya is massive economic hardship for the 70%

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This called confidence for the future sir! Not confident, no future. Confident that why you spend now pay later. Haha!

mojito said:

This called confidence for the future sir! Not confident, no future. Confident that why you spend now pay later. Haha!

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In the words of my fellow poker players from Rounders "ill call,otherwise I wont have any respect for myself in the morning" " by this time in the morning,respect is all you have left!!"

majority of sinkies will take the bait. huat ah!

Runifyouhaveto said:

MAS eases rules on motor vehicle financing
http://www.channelnewsasia.com/news/singapore/mas-eases-rules-on-motor/2819122.html

The maximum loan-to-value ratio for vehicles on the open market less than or equal to S$20,000 will be raised from 60 per cent to 70 per cent, and that for vehicles more than S$20,000 will be upped to 60 per cent from 50 per cent.

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Hey! Thought last time you say you not posting here anymore? Why you come back again?

casino levy to decrease as well?

Don't read to too much when it comes to car loans. Car loans are so small in the scheme of things economy wise. The regulatory framework in MAS was dismantled in 2003 after it came into play 1995. It had 2 purpose, control the number of cars on the road and family financial prudence, and nothing to do with the economy. It was reintroduced in 2013 after an absence of 10 years, when the COE prices rocketed and more cars were getting on to the roads despite the spiralling prices. COE as a single mechanism failed.

Control over property loans is an important economic and political lever. Since the mid 90s, the political lever became more important than economic and the Government is only bothered about HDB and landed property. When it comes to private condo prices, its the wild west. People holding senior public office and their families and the elite know this and use it to time their punting. Its 50% speculation and 50% investment. When the market falls, it becomes investment, when it rises rapidly, its for flipping.

The current gloom is global and the people that drive the private non-landed sector are foreigners. In 2011, the Govt failed to pull the political level for private housing and paid the price at the polls. They are not going to do again anytime soon.

Runifyouhaveto said:

will property loans be next?

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xebay11 said:

Hey! Thought last time you say you not posting here anymore? Why you come back again?

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I was too disheartened by TingRu's defeat.
She is so outstanding, so perfect and yet her team's vote count was too humiliating by any standards.

Then I had depression and tried to understand what went wrong. At least now, i feel more enlightened now.

I appeal to our brothers here to strongly vote for our incumbent in the coming elections. If opposition wants to win, they must be willing to lose more. Trust me on this, in the next election, if all of us here channel our votes to the incumbent, then we still have to chance to see greater democracy before we die.

i am not joking. Trust me. Singaporeans are selfish. ah RUN had been sufficiently bullied by foreigners and locals alike in the course of his work. I tried to seek help from my country's leaders for my grievances but in vain. Not even a reply, hahaha after writing 4 times.

Nobody, the incumbent or opposition, will really help you if there is no newsworthiness in this society. I am tired


Most people here are good to ah RUN, so ah RUN's best advice is to encourage our brothers here to stay take care of our ownselves. Don't care about politics anymore and know your priorities. If you are better educated or street smart, try to read the market, anticipate the next move and protect yourself, friends and families.

For long-term good, together we need to join the 70%.

- We need to support government policies strongly, encourage more foreigners to live side-by-side with our 70% in HDBs and Condos and give them priority in RCs and local community events.
- We need to encourage government to hire more Indian, China Chinese and filipinos in our civil service so that they understand the situation faced by our PMETs in the private sector.
- We need more foreign students to be prioritized over local students for scholarship and leadership programs such as trekking in Mount Kinabalu, which revealed that an unusually high participation rate for foreign-born students.

hahaha, I don't know if you seen soft local kids being bullied in playgrounds. In the same context, greater presence of foreign students, NSFs, workers and residents in our society is very beneficial for our democracy in the long run. So, on our part, we need to embrace our leadership in the next election.

Singapore is like that. Look at the skewed results between General Elections and Presidential Elections. Nobody wants opposition from their own wards, so if we want greater democracy, we must learn to let go first.

songsongjurong said:

casino levy to decrease as well?

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No sir, but we seriously, seriously need to build another one in Singapore.