Regulatory Alerts2014-09-04
Added
Borrowers Who are Individuals and Who Own Residential Property Gazetted for Acquisition (August 2014)
The Monetary Authority of Singapore issued this circular to clarify the application of Residential Property Loans and Total Debt Servicing Ratio notices to individuals whose residential property has been gazetted for government acquisition. Financial institutions are permitted to grant replacement property loans with a loan-to-value limit of up to 80%, a maximum tenure of 35 years or the remaining tenure of the original loan, and exemptions from the borrower-mortgagor rule and Mortgage Servicing Ratio limits for specific property types. These relaxed criteria apply provided the borrower produces the official Notice of Land Acquisition and, where applicable, a written declaration confirming no other replacement property has been declared.