Singapore Expats Forum

Well, well... new mortgage rules = fuxored market?

Discuss about the latest news & interesting topics, real life experience or other out of topic discussions with locals & expatriates in Singapore.

offshoreoildude
Manager
Manager
Posts: 1582
Joined: Wed, 04 Jul 2012

Well, well... new mortgage rules = fuxored market?

Postby offshoreoildude » Sat, 06 Oct 2012 10:58 am

Max 35 year loan to 65 years of age.
60% max.
Yeah I think the Govt just screwed the market.
Typicaly of the new chop and change PAP style - no consistency anymore = no stability.
Now I'm called PNGMK

offshoreoildude
Manager
Manager
Posts: 1582
Joined: Wed, 04 Jul 2012

Postby offshoreoildude » Sat, 06 Oct 2012 11:07 am

Oh and applies to refinancing as well. Damn. property crash coming.
Now I'm called PNGMK

User avatar
nakatago
Moderator
Moderator
Posts: 8333
Joined: Tue, 01 Sep 2009
Location: Sister Margaret’s School for Wayward Children
Contact:

Postby nakatago » Sat, 06 Oct 2012 11:17 am

Image

offshoreoildude
Manager
Manager
Posts: 1582
Joined: Wed, 04 Jul 2012

Postby offshoreoildude » Sat, 06 Oct 2012 11:32 am

This will push up the monthly loan quantum (so rent may go up) and the tightened rules about additional mortgages (cash now = 60%) will force the rental market up as investment will be severely curtailed (i.e. less properties for rent). This will also limit renters ability to enter the property market for purchare (all from Money in the ST - paraphrased).
Now I'm called PNGMK

revhappy
Editor
Editor
Posts: 1067
Joined: Wed, 10 Jun 2009

Postby revhappy » Sat, 06 Oct 2012 12:05 pm

Thanks for the alert OSOD, but just like what the comment in the article says, this measure is like a tremor in comparison to the earth quake that ABSD brought.
Last edited by revhappy on Sun, 14 Oct 2012 11:07 pm, edited 1 time in total.

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Sat, 06 Oct 2012 12:57 pm

60% loan max is only for those loan over 30 yrs, or where you'll be older than 65 at completion, correct?


edit: yes, here are the details:
http://www.mas.gov.sg/en/News-and-Publi ... rties.aspx

New rules on loan tenure

9 The new MAS rules impose an absolute limit of 35 years on the tenure of all loans for residential property. This will apply to loans to both individual and non-individual borrowers, as well as refinancing loans1, from 6 October 2012.2

10 In addition, MAS will lower the LTV ratio for new residential property loans to borrowers who are individuals, if:

the tenure exceeds 30 years; or
the loan period extends beyond the retirement age of 65 years.
For these loans, the LTV limit will be:

40% for a borrower with one or more outstanding residential property loans3; and
60% for a borrower with no outstanding residential property loan.
Last edited by zzm9980 on Sat, 06 Oct 2012 1:03 pm, edited 2 times in total.

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Sat, 06 Oct 2012 12:59 pm

revhappy wrote:Thanks for the alert OSOD, but just like what the comment in the article says, this measure is like a tremor in comparison to the earth quake that ABSD brought.


Oh, one of the very few benefits of being an American in SG (Or Swiss, Icelandic, Norwegian, and whatever you call people from Liechtenstein) :P

User avatar
x9200
Moderator
Moderator
Posts: 9301
Joined: Mon, 07 Sep 2009
Location: Singapore

Postby x9200 » Sat, 06 Oct 2012 1:38 pm

zzm9980 wrote:60% loan max is only for those loan over 30 yrs, or where you'll be older than 65 at completion, correct?

Correct. So depending on MAS evaluation of the buying power of the market it may not be necessary such a bad thing. At least it looks like the property prices should drop a bit.

offshoreoildude
Manager
Manager
Posts: 1582
Joined: Wed, 04 Jul 2012

Postby offshoreoildude » Sat, 06 Oct 2012 1:56 pm

x9200 wrote:
zzm9980 wrote:60% loan max is only for those loan over 30 yrs, or where you'll be older than 65 at completion, correct?

Correct. So depending on MAS evaluation of the buying power of the market it may not be necessary such a bad thing. At least it looks like the property prices should drop a bit.


Well, I'm disappointed but not overly concerned. I need to refinance in April 2014 though (and I originally finances until I was 75 or 79 I think - can't remember) - so it may actually push me into selling and leaving. I'm not convinced will drop property prices yet.... for that we usually need a recession of at least two years duration based on past experiences.
Now I'm called PNGMK

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Sat, 06 Oct 2012 3:02 pm

x9200 wrote:
zzm9980 wrote:60% loan max is only for those loan over 30 yrs, or where you'll be older than 65 at completion, correct?

Correct. So depending on MAS evaluation of the buying power of the market it may not be necessary such a bad thing. At least it looks like the property prices should drop a bit.


IMO, this will kill the low end ($1.2mil SGD and under) condo market. I would imagine that market is dominated by those flipping their first HDB and looking to upgrade. I'd also put them in the mid30s-mid40s bracket, just slightly over the 65 age limit.

offshoreoildude
Manager
Manager
Posts: 1582
Joined: Wed, 04 Jul 2012

Postby offshoreoildude » Sun, 07 Oct 2012 11:52 am

zzm9980 wrote:
x9200 wrote:
zzm9980 wrote:60% loan max is only for those loan over 30 yrs, or where you'll be older than 65 at completion, correct?

Correct. So depending on MAS evaluation of the buying power of the market it may not be necessary such a bad thing. At least it looks like the property prices should drop a bit.


IMO, this will kill the low end ($1.2mil SGD and under) condo market. I would imagine that market is dominated by those flipping their first HDB and looking to upgrade. I'd also put them in the mid30s-mid40s bracket, just slightly over the 65 age limit.


Amen to above. More importantly it will dry up the investor pool by stopping new entrants into the core of the landlord market. Rents are going to go up in the long term failing any other changes.
Now I'm called PNGMK

User avatar
x9200
Moderator
Moderator
Posts: 9301
Joined: Mon, 07 Sep 2009
Location: Singapore

Postby x9200 » Sun, 07 Oct 2012 12:33 pm

By kill you mean no buyers or different type of the buyers?

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Sun, 07 Oct 2012 12:39 pm

x9200 wrote:By kill you mean no buyers or different type of the buyers?


I have no stats, just my assumptions, and those are that the dominate market for that range of condos (as described above) will be priced out of the market. All of the new developments in Ulu ulu (Pungol, Choa chu kang, etc) will be hit the hardest, and we'll see prices really fall there. The other market hit will be the uncles buying their third and forth properties just to rent as income. (This from an uncle they quoted in the paper who said just this). That will also lower property prices, but as OSOD said, rents will raise to cover the mortgage for those still kiasu enough to buy and take the short term mortgage.

All a semi-educated guess, of course.

revhappy
Editor
Editor
Posts: 1067
Joined: Wed, 10 Jun 2009

Postby revhappy » Sun, 07 Oct 2012 1:23 pm

This is OT, but Punggol is not anywhere as Ulu as CCK. Both Punggol and Sengkang are hot favorites among Indian expats and others. East is the most happening suburb now :cool:
Last edited by revhappy on Sun, 14 Oct 2012 11:07 pm, edited 1 time in total.

User avatar
zzm9980
Governor
Governor
Posts: 6837
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Sun, 07 Oct 2012 2:22 pm

revhappy wrote:This is OT, but Punggol is not anywhere as Ulu as CCK. Both Punggol and Sengkang are hot favorites among Indian expats and others. East is the most happening suburb now :cool:


Well then, given MOM's actions towards Indian expats I double-down on my theory. :cool: They're also a dying breed.


  • Similar Topics
    Replies
    Views
    Last post
  • Move Overseas Mortgage to Singapore Attachment(s)
    by covers » Wed, 06 Apr 2016 4:10 pm » in General Discussions
    13
    3142
    by PNGMK View the latest post
    Thu, 07 Apr 2016 2:31 pm
  • New Contract Rules by MOM
    by ecureilx » Mon, 20 Jun 2016 7:25 pm » in Careers & Jobs in Singapore
    2
    797
    by ecureilx View the latest post
    Tue, 21 Jun 2016 2:56 pm
  • New Visa Rules
    by thailen » Sun, 27 Aug 2017 2:01 pm » in PR, Citizenship, Passes & Visas for Foreigners
    7
    1268
    by bgd View the latest post
    Mon, 28 Aug 2017 3:04 pm
  • SOP FOR THIS EXPAT FORUM - RULES
    by martincymru » Sun, 02 Jun 2013 8:44 pm » in Events, Gatherings, Making Friends
    1
    1893
    by sundaymorningstaple View the latest post
    Sun, 02 Jun 2013 9:18 pm
  • Southie Rules on Bio (Starhub)
    by uscate » Fri, 12 Jul 2013 6:32 pm » in General Discussions
    2
    1665
    by uscate View the latest post
    Sat, 13 Jul 2013 8:18 am

Return to “General Discussions”

Who is online

Users browsing this forum: No registered users and 2 guests