Regulatory Alerts2013-08-27
Added · Updated
MAS Notice 825 Residential Property Loans
Finance companies 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 allow for interest-only repayment or interest absorption schemes. Borrowers must contribute a minimum cash payment equal to Cash% and finance companies must verify borrower declarations and conduct comprehensive credit bureau and HDB checks prior to disbursement. The notice imposes a maximum credit tenure of 35 years, with a 30-year limit for HDB flats unless a Letter of Invitation is provided, and restricts refinancing facilities based on specific tenure calculations and debt servicing ratios.
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