Regulatory Alerts2021-06-28
Added · Updated
MAS Notice 1106 Residential Property Loans
Merchant Banks in Singapore are prohibited from granting credit facilities for the purchase or security by residential property where the aggregate loan amount exceeds the Relevant Amount, or where terms involve interest-only loans or interest absorption schemes. Banks must verify borrower declarations, conduct comprehensive credit bureau and HDB checks, and ensure borrowers contribute a minimum cash payment before disbursing funds. Additionally, credit facility tenures are capped at 35 years generally, and 30 years for HDB flats, with specific rules governing re-financing tenures and exemptions for bridging loans and property developers.
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