04/10/2022
โ๏ธLatest Property Cooling Measures โ๏ธ
Objective
โ๏ธ To promote sustainable conditions in the property market
For Private Home Purchase
๐ An increased of 0.5% interest rate floor from 3.5 % to 4% to compute the Total Debt Servicing Ratio (TDSR). If buyers have a combined income of $10,000 taking a 30 years loan, they can loan up to only $1.536M instead of $1.633M previously.
๐ All new equity loans applications will be computed based on the above too. Refinancing owner-occupied property loans will not be affected.
For HDB Home Purchase
๐ An increase of 0.5% interest rate floor from 3.5 % to 4% to compute the Mortgage Servicing Ratio (MSR) used by banks loans and increased from 2.5% to 3% for computing the eligible loan amount used HDB loans.
๐ Loan-to-Value (LTV) is restricted from 85% to 80% when using HDB loans.
๐ Private residential property owners (PPOs) and ex-PPOs have to will not be eligible to buy HDB for atleast 15 months*. This wait-out period will not apply to seniors PPOs aged 55 and above moving to a 4-room or smaller resale flat. However,should they choose to purchase a bigger flat, the 15 months wait out period applies.
For Non-Residential Property Purchase
๐ An increased of 0.5% interest rate floor from 4.5 % to 5% to compute the Total Debt Servicing Ratio (TDSR).
Speak with me to understand how these measures will affect you and how you can navigate through the property market in its current condition!
