The Government has introduced a series of new Singapore property cooling measures to moderate demand in the wake of increasing market interest rates. This was announced just yesterday on the 29th of September.
To make housing more affordable and available for everyone, it includes tightening maximum loan quantum limits and introducing a 15-month wait-out period for private homeowners before purchasing resale flats. This is also to promote sustainable conditions in the property market! Also, the loan-to-value (LTV) limit for HDB loans will also be lowered from 85% to 80%. Continue to read our article as we summarise the new Singapore property cooling measures for you!
Prudent Borrowing From Financial Institute
The MSR (Residential) has increased from 3.50% to 4%. For TDSR (Residential), it has increased from 3.50% to 4%. Lastly, the TDSR (Non Residential) has increased from 4.50% to 5%.
Prudent Borrowing from HDB Board
There’s good news for home buyers! For HLE MSR, it has increased from 2.60% to 3%! The HDB loan however still remains at 2.6%. (It will continue to be priced at 0.10% + OA rate = 2.6% (reviewed quarterly)
The LTV will however be lowered from 85% to 80%.
Moderate The Demand in HDB Resale Market
The updated Singapore property cooling measures, which came into effect last night requires Private Property Owner (PPO), or Ex-Private Property Owner to wait 15 months prior to granting an Option to Purchase a non-subsidized Resale Flat.
For BTO/EC subsidized housing, the wait time is still 30 months. Additionally, it’s important to note that seniors (above 55 years old) who wish to downgrade to a 4-room flat or smaller, will not be affected by the wait out period.
If you are facing any financial difficulties, you may appeal your case to HDB to access your situation on a case-by-case basis.
The government is currently implementing a waiting period for resale HDB from a PPO. This will be a temporary measure to moderate demand for resale flats and will be reviewed based on market changes!
We hope that this article has made you more aware of the updated Singapore property cooling measures. The latest update to the regulations is sure going to be a game changer for those looking into buying or selling their homes! If you have any questions, do contact us here. We will be delighted to guide you through the process! Also, don’t forget to check out our other articles here!