Cooling measures

SINGAPORE - The maximum amount of money home buyers can borrow to purchase their homes will be tightened with immediate effect, so that borrowers avoid ...

To moderate demand in the HDB resale market, a wait-out period of 15 months for current and former owners of private residential property to buy a non-subsidised HDB resale flat will be imposed from Sept 30 onwards. In other words, they can borrow less than before. These will take effect from Sept 30. The new 3 per cent interest rate floor will apply to fresh applications for an HDB Loan Eligibility (HLE) letter received on or after Sept 30. This means that the interest rate used to compute the eligible loan amount for a HDB housing loan will be the higher of 3 per cent per annum or 0.1 percentage point above the prevailing CPF Ordinary Account (OA) interest rate. This will apply to loans for the purchase of properties where the option to purchase or sale and purchase agreement is granted on or after Sept 30.

SINGAPORE — In a bid to moderate demand for public housing, the authorities have announced that private property owners will now have to serve a temporary ...

The loan-to-value limit for loans taken with the Housing and Development Board (HDB) will also be lowered from 85 per cent to 80 per cent. This is currently set at 55 per cent of the borrower's monthly income. As for the loan-to-value limit for HDB housing loans, the revised 80 per cent limit will apply to new flat applications for sales exercises launched and complete resale applications that are received by HDB on or after Sept 30. Before the announcement, both current and former private property owners were allowed to buy a non-subsidised HDB resale flat on the open market, with the requirement that they dispose of their private properties within six months of the HDB flat purchase. As a means to tackle this “clear upward momentum in HDB resale prices”, the Government will introduce a wait-out period of 15 months for both current and former private residential property owners to buy a non-subsidised HDB resale flat. SINGAPORE — In a bid to moderate demand for public housing, the authorities have announced that private property owners will now have to serve a temporary wait-out period of 15 months after selling their homes before they are allowed to buy a non-subsidised resale flat.

Government tightens borrowing limits by raising interest rate floor when assessing borrowers' repayment ability and reduces loan-to-value ratio for HDB ...

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Total Debt Servicing Ratio, Mortgage Servicing Ratio and Loan-To-Value limits hardened, 15-month wait-out period introduced for private property owners ...

Private home owners will now have to wait 15 months after they sell their property before they can buy an HDB resale flat.

"The Government remains committed to keep public housing inclusive, affordable and accessible to Singaporeans. For HDB loans, the loan-to-value (LTV) limit has been lowered from 85 per cent to 80 per cent. However, it was increased for those buying a second or a third and subsequent residential property. If there is no option to purchase, it will apply when the date of sale and purchase agreement is on or after that date. This reduces the maximum amount home buyers can borrow from HDB. There will be no impact on existing applications received by HDB before this time.

Lower LTV limits for HDB loans; 15-month wait-out period for some down graders. 1. Higher floor rate for MSR, TDSR, and HDB loan. First, for property loans ...

The rest of your CPF OA must be used to pay for the flat). The floor rate is set at higher than the market average, for the purposes of MSR and TDSR calculation. We’ll also provide you with the latest insights and reviews of the Singapore property market. We don’t think the longer wait-out will lower resale flat prices, as fundamental demand is strong; but it may be sufficient to prevent further price hikes. First, you need to meet the MSR – which means $2,639 cannot exceed 30 per cent of your monthly income. This HDB loan rate is thus 2.6 per cent per annum and has been for almost 20 years. That means the combined borrowers must earn at least $6,980 per month, to qualify for the $500,000 loan. The remaining $100,000 can be paid in any combination of cash or CPF. Next, you need to meet the TDSR. The TDSR applies to private bank loans. Say you apply for a bank home loan of $500,000. You opt for a 25-year loan tenure.

As the rising interest rates won't end anytime soon, the government decided to enforce new cooling measures that will strictly put in place maximum loan ...

Which is why it will enforce a wait-out period of 15 months for private residential property owners (PPOs) and ex-PPOs to buy a non-subsidised HDB resale flat. [Most homebuyers felt the impacts of these cooling measures](https://sbr.com.sg/residential-property/in-focus/around-7-in-10-homebuyers-affected-property-cooling-measures), even considering buying commercial properties instead. • This will apply to loans for the purchase of properties where the Option to Purchase (OTP) is granted on or after 30 September 2022, or where there is no OTP, the date of the Sale and Purchase Agreement is on or after 30 September 2022. “The lower LTV limit will apply to new flat applications for sales exercises launched and complete resale applications which are received by HDB on or after 30 September 2022,” read the joint statement. • The interest rate floor will apply to fresh applications for an HDB Loan Eligibility (HLE) letter received on or after 30 September 2022, 00:00 hours. - MAS will increase by 0.5%-point the medium interest rate floor used to compute the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) for property loans provided by private financial institutions.

“The HDB property market underpins the whole residential property market in Singapore. That's why the government started with reduced TDSR and lower LTV for HDB ...

"The impact of the measures in the middle to long term is likely to be dwarfed by the volatile global economic conditions in 2023 and beyond. [en bloc](https://www.propertyguru.com.sg/property-guides/properties-in-singapore-with-en-bloc-potential-10666)sales) may resort to leasing or purchasing a private property in the secondary market. The slowing of sales is likely to be felt on mass market condominium projects that rely on demand from HDB upgraders," said Dr. "The impact on the high-end market will be limited. HDB resale flat prices and the high-quantum transactions ($1 million and more) are also expected to slow, thanks to the increased wait-out period and tighter financial restriction affecting this group. This will relieve pressure from the market and is likely to have a significant impact," said Paul. This happens as buyers in the market take some time to digest the new regulations, evaluate how they are affected, and figure out their next best step. In the December 2021 cooling measures, the government lowered the HDB LTV limit from 90% to 85%. [cooling measures (in December 2021)](https://www.mnd.gov.sg/newsroom/press-releases/view/measures-to-cool-the-property-market)was the increase in the number of million-dollar HDB flat transactions. [TDSR](https://www.propertyguru.com.sg/property-guides/what-is-tdsr-2482)and [MSR](https://www.propertyguru.com.sg/property-guides/what-you-need-to-know-about-mortgage-servicing-ratio-msr-2731)will be increased by 0.5%. The impact of this 0.50% increase in floor rate translates to an approximate 5% drop in the budget available for one’s purchase," said Paul. If there is no [Option-to-Purchase (OTP)](https://www.propertyguru.com.sg/property-management-news/2019/6/181042/what-is-an-option-to-purchase-otp-agreement), the date of the Sale and Purchase Agreement will be used.

“This latest round of cooling measures has a more severe impact on the HDB resale market, in particular the bigger 5-room and executive HDB flats, which could ...

Developers may push back some launches, says a property analyst after authorities announced stricter borrowing criteria for home loans.

“Developers may defer some launches to next year,” he said. [revising their home loan packages](https://www.channelnewsasia.com/singapore/dbs-temporarily-removes-fixed-rate-mortgage-home-loans-2960066) amid rising interest rates, ended higher. Advertisement The measures include raising the medium-term interest rate floor by 0.5 percentage points to 4 per cent. “Transaction volume may be slower in the next three months.

SINGAPORE - New property cooling measures were introduced on Sept 30 to cool the heated HDB resale and private housing markets.

The fee serves as part of the purchase price and is non-refundable. Both owners have to be at least 55 for the wait-out period to be waived when moving from a private property to a four-room or smaller resale flat. But it is unclear if private home downgraders who have exercised their OTP and are now subjected to the wait-out period will get back their fees as it is an agreement between the seller and buyer. The 15-month wait-out period will not apply to seniors and their spouses, both of whom must be aged 55 and above, who move from their private property to a four-room or smaller resale flat. The wait-out period applies to private home downgraders who submit the complete resale application - both the buyers' and sellers' portions - from Sept 30. If I sold my private property before the new cooling measures were announced, does the wait-out period of 15 months apply if I want to buy an HDB flat?