Home buyers unfazed by loan curbs

Home buyers unfazed by loan curbs

Despite new restrictions on the length of home loans that took effect yesterday, house hunters did not stay away from condominium showflats islandwide.
At new launches like Riversails along the Punggol waterfront and Cityscape at Farrer Park, showrooms were packed.

At a 748-unit development in Bedok South called eCO, for example, at least 20 units were sold yesterday.
The Monetary Authority of Singapore (MAS) said on Friday that it was capping the length of a home loan at 35 years.

It also lowered the loan limits for those who take loans past 30 years, or which extend beyond the retirement age of 65.

Such buyers can take a loan of only 60 per cent of the property's value, down from 80 per cent, starting yesterday.

This means an upfront payment in cash of 40 per cent of the property's price.

If it is their second or more loan, the loan limit shrinks further to 40 per cent - they must fork out a cash down payment of 60 per cent of the property's value.

House hunters The Sunday Times spoke to yesterday said they were aware of the latest changes but they were undeterred.

Source: The Straits Times – 7 October 2012