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.