Regulatory Alerts2025-08-21
Added · Updated
MAS Notice 115 Residential Property Loans
Direct insurers are prohibited from granting credit facilities for the purchase of residential property where the aggregate loan amount exceeds the Relevant Amount, or where terms allow for interest-only repayments or interest absorption schemes. Insurers must verify borrower declarations and conduct comprehensive checks with credit bureaus and the Housing & Development Board to assess creditworthiness and ensure borrowers have paid a minimum cash contribution. The notice also restricts the tenure of such credit facilities to a maximum of 35 years, with a 30-year limit for HDB flats unless a Letter of Invitation is provided, and applies similar rules to refinancing and facilities secured by residential property.
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