Regulatory Alerts2021-06-28
Added · Updated
MAS Notice 1107 Bridging Loans for the Purchase of Immovable Properties
Merchant banks in Singapore are prohibited from granting unsecured bridging loans to individual citizens or permanent residents with an annual income below $20,000. For borrowers with an annual income of $20,000 or more, unsecured bridging loans that cause total outstanding unsecured amounts to exceed the overall credit limit are restricted unless the excess is fully secured or the borrower meets specific high-income or asset thresholds. These requirements apply to joint borrowers where at least one is a citizen or permanent resident, and specific security sufficiency rules apply when loans are used for HDB flat purchases. The notice takes effect on 1 July 2021.
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