In announcing the cooling measures, Singapore authorities noted that market interest rates have risen significantly and are likely to rise further, which will affect borrowing costs for home purchases.
“We urge households to exercise prudence before taking up any new loans and be sure of their debt-servicing ability before making long-term financial commitments,” said the Monetary Authority of Singapore, the Ministry of National Development and the Housing and Development Board (HDB) in a joint media release.
The loan-to-value (LTV) limit for HDB loans has also been lowered from 85 per cent to 80 per cent, reducing the maximum amount home buyers can borrow from HDB.
To moderate demand in the HDB resale market, the Government has imposed a 15-month wait-out period for private home owners before they can purchase a non-subsidised HDB resale flat.
This will kick in after they have sold their property.
Previously, such property owners were allowed to buy an HDB resale flat on the open market if they sold their private properties within six months of purchasing the HDB unit.
The 15-month wait-out period is a temporary measure and will not apply to seniors aged 55 and above who are moving from their private property to a four-room or smaller resale flat.
In announcing the cooling measures, Singapore authorities noted that market interest rates have risen significantly and are likely to rise further, which will affect borrowing costs for home purchases.
“We urge households to exercise prudence before taking up any new loans and be sure of their debt-servicing ability before making long-term financial commitments,” said the Monetary Authority of Singapore, the Ministry of National Development and the Housing and Development Board (HDB) in a joint media release.
The loan-to-value (LTV) limit for HDB loans has also been lowered from 85 per cent to 80 per cent, reducing the maximum amount home buyers can borrow from HDB.
To moderate demand in the HDB resale market, the Government has imposed a 15-month wait-out period for private home owners before they can purchase a non-subsidised HDB resale flat.
This will kick in after they have sold their property.
Previously, such property owners were allowed to buy an HDB resale flat on the open market if they sold their private properties within six months of purchasing the HDB unit.
The 15-month wait-out period is a temporary measure and will not apply to seniors aged 55 and above who are moving from their private property to a four-room or smaller resale flat.