Maximum Loan Tenure for Residential Property Capped at 35 years

The Mon­et­ary Author­ity of Singa­pore (MAS) has announced the latest round of Prop­erty Cool­ing meas­ures on the ten­ure on home loan, with effect from 6 Octo­ber 2012.

Now, the max­im­um loan ten­ure is 35 years for res­id­en­tial prop­erty, to both indi­vidu­al and non-indi­vidu­al bor­row­ers, even for refin­an­cing loans.

The Loan-to-Value (LTV) for indi­vidu­al is fur­ther tightened for loans that exceed 30 years or  if it past the retire­ment age of 65 years old. For these loans, the LTV lim­it will be 40% for a bor­row­er with one or more out­stand­ing res­id­en­tial prop­erty loans; and 60% for a bor­row­er with no out­stand­ing res­id­en­tial prop­erty loan. This rule is applic­able to both HDB flats and private prop­er­ties.

The LTV ratio for non-indi­vidu­al bor­row­ers is lowered from 50 per­cent to 40 per­cent.

 For those ind­vidu­als who are 35 years old or below, they are NOT affected by this new meas­ure.