“Why, what gives you the idea home buyers are desperate?” 2. Reduction of Maximum Loan Tenure The maximum loan tenure is now set to 25 years for HDB Concessionary Loans and 30 years for bank loans. The time before a loan is repaid in full a 30 year loan tenure with a bank loan will however only grant you 60% of the purchase price. If you need the full 80%, the maximum loan tenure you can take is 25 years, which is the same as the HDB Concessionary Loan. A shorter loan tenure means higher monthly repayments for the same loan amount. Combined with the lower MSR, this means home buyers in general will be borrowing much less. While that sucks, it does mean fewer Singaporeans will be over-leveraged. This should brace us for potential liquidity crunches, once the Americans change their fiscal policy.
Posted on: Fri, 30 Aug 2013 06:53:49 +0000