Latest MAS housing loan rules are to protect banks, not you!

[Confuseous]

So what does this mean for many of you out there, looking to buy a new home or first property? Well, before these new measures, your loan profile would probably look like this on a fictitious SGD1 million property:

Borrowable sum (80%): $800,000

Average market interest rate: 1.25%

Loan tenure: 30 years

Monthly repayment: $2666

At a TDSR of 60%, the borrower(s) would need to have a minimum monthly income of $4443 (after other loan and debt repayments are factored out) to qualify.

With these new measures in place since 29 June 2013, your loan profile will look quite different:

Borrowable sum (80%): $800,000

Mandated interest rate: 3.5% (at least)

Loan tenure: 30 years

Monthly repayment: $3592

A TDSR of 60% would thus require a minimum monthly income of $5987. That is of course after factoring out car loans, student loans and other debt repayments.

- http://www.bluta.com.sg/blog/2013/07/mas-has-another-go-at-property-cooling-measures/

 

[I_Hate_Pappies]

That's what i said when they capped the car loans. Banks are getting bao jiak businesses in SG. Who says no risk no gain?

 

[YanDao]

Err..who are those in the banking business?

 

[Cerebral]

With this new policy, I think the biggest loser are those sandwich class, especially those earning below 5k. At 60% mark, they have very limited amount for housing and anything else.

 

[ILovePAP]

With this new policy, I think the biggest loser are those sandwich class, especially those earning below 5k. At 60% mark, they have very limited amount for housing and anything else.

The govt is moving in the right direction! Stop grumbling!

 

[I_Hate_Pappies]

The govt is moving in the right direction! Stop grumbling!

What direction?

 

[Romagnum]

No money don't buy. Follow my example. Rent out HDB $2,500, live in JB, 500RM rent

Long commute but listen to MP3 or look at chiobu, never mind, also relak

 

[Poomer]

What direction?

[video=youtube;8B0PJkS0iyk]http://www.youtube.com/watch?v=8B0PJkS0iyk[/video]