Property Cooling Measures

Major Cooling Measures that Affect Singapore Property Market

Below is a comprehensive view of the latest government policies related to the (residential) Singapore Property market. These policies are often referred to as the ‘Singapore Property Market Cooling Measures’. Let’s explore further, see how these measures may affect your decision on the purchase of New Launch Singapore Property.

Singapore Property Loan-to-Value 12 Jan 2013

Singapore Property Loan-to-Value – 12 Jan 2013

Singapore Property Additional Buyers’ Stamp Duty (ABSD) – 12 Jan 2013

Singapore Property Additional Buyers’ Stamp Duty (ABSD) – 12 Jan 2013

Singapore Property Sellers’ Stamp Duty (SSD) – 14 Jan 2011

Singapore Property Sellers’ Stamp Duty (SSD) – 14 Jan 2011

Singapore Major Cooling Measures

9-Dec-13

1. Reduction of Cancellation Fees From 20% to 5% for private residential properties.
2. Resale Levy for Second-Timer Applicants. Formerly second timers are not required to pay a levy. This is applicable to only new EC land sales which are launched on or after 9th December 2013.
3. Revision of Mortgage Loan Term. From a previous mortgage servicing ratio (MSR) level of 60% to now 30% of a borrower’s gross monthly income. The MSR cap will apply to EC purchases from 10th December 2013 onwards.

27-Aug-13

1. Singapore Permanent Resident Households need to wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat.
2. Maximum tenure for HDB housing loans is reduced from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit is reduced from 35% to 30% of the borrower’s gross monthly income.
3. Maximum tenure of new housing loans and re-financing facilities granted by financial institutions for the purchase of HDB flats (including DBSS flats) is reduced from 35 years to 30 years. News loans with tenure exceeding 25 years and up to 30 years will be subject to tighter LTV limits.

29-Jun-13

1. TDSR: Financial institutions are required to consider borrowers’ other outgoing debt obligations when granting property loans. His total monthly repayments of his debt obligations should not exceed 60 per cent of his gross monthly income.
2. In particular, MAS requires:

• • borrowers named on a property loan to be the mortgagors of the residential property for which the loan is taken;
  • “guarantors” who are standing guarantee for borrowers otherwise assessed by the financial institutions at the point of application for the housing loan not to meet the TDSR threshold for a property loan to be brought in as co-borrowers; and in the case of joint borrowers, that financial institutions use the income-weighted average age of borrowers when applying the rules on loan tenure.

12-Jan-13

1. ABSD: Citizens pay 7/10% on second/third purchase (from 0/3%); Permanent Residents (PR) pay 5/10% for first/second purchase (from 0/3%); foreigners and non-individuals now pay 15%.
2. LTV for second/third loan now 50/40% from 60%; non-individuals’ LTV now 20% (from 40%).
3. Mortgage Servicing Ratio (MSR) for HDB loans now capped at 35% of gross monthly income (from 40%); MSR for loans from financial institutions capped at 30%.
4. PRs no longer allowed to rent out entire HDB flat.