Regulatory Alerts2013-08-27
Added · Updated
MAS Notice 632 Residential Property Loans
Banks in Singapore are prohibited from granting credit facilities for the purchase or security of residential property where the aggregate loan amount exceeds the Relevant Amount, or where terms allow for interest-only repayment or vendor-funded interest absorption. Banks must verify borrower declarations, conduct credit bureau and HDB checks, and ensure borrowers contribute a minimum cash payment before disbursing funds. Additionally, loan tenures are capped at 35 years generally, or 30 years for HDB flats unless a Letter of Invitation is provided, with specific exceptions for refinancing and bridging loans.
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