Amidst the heating Singapore market, MAS has released an immediate press release which will take immediate effect from tomorrow,
The Monetary Authority of Singapore (MAS) will restrict the tenure of loans granted by financial institutions for the purchase of residential properties. MAS’ move is part of the Government’s broader aim of avoiding a price bubble and fostering long term stability in the property market.
2 The maximum tenure of all new residential property loans will be capped at 35 years. In addition, loans exceeding 30 years tenure will face significantly tighter loan-to-value (LTV) limits. This will apply to both private properties and HDB flats. The new rules will take effect from 6 October 2012.
[block type=”download”]Read the official press release from MAS here
These measures are somewhat expected and mirrored what Hong Kong has done after QE3 was announced by the Feds. Traditionally tenures over 30 years are not too popular, and shouldn’t affect the current property prices. This is especially a good move for home buyers whom might overestimate their affordability as well as investors who tend to stretch the loan tenures in case any volatility will to happen in the market.
With the introduction of Seller’s Stamp Duty and lowering of Loan-to-Value ratio last year and being enhanced before, the Singapore Government steps in further to adjust the already heavy measures to cool down the property market by introducing the following:-
- Increasing the holding period for imposition of Seller’s Stamp Duty(SSD) from three to four years
- Raise the SSD rates to 16%, 12%, 8% and 4% of consideration for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively. You can see an example of the computation here.
- Lower the Loan-To-Value (LTV) limit to 50% on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals
- Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans at the time of the new housing purchase
The measures will take effect tomorrow on the 14th of January 2011. Continue reading “New Cooling Measures Yet Again – Seller Stamp Duty and Loan to Value Adjusted”
With immediate effect, the Government has introduced two new measures to cool down the property market.
Introducing Seller’s Stamp Duty (SSD) for Properties Sold Within a Year
Properties that were bought before 20th February 2010 will not be subjected to the SSD. The SSD will be levied on sellers of residential properties and lands bought on or after today.
HDB flats are exclused from the SSD as they do already have a minimum occupancy period of at least one year.
The objective is to discourage possible speculation in the market and is not meant for purchase of properties for owner-occupation or longer term investment. Continue reading “New Seller’s Stamp Duty & Lower Housing Loan Limit”