Regulatory Alerts2005-03-01
Added
MAS Requirement for Financial Institutions to Align HDB Resale Flat Valuations with CPFB Measures
The Monetary Authority of Singapore mandates that financial institutions use the same valuation as the Central Provident Fund Board when computing maximum housing loans for HDB resale flats funded by CPF savings. This requirement aligns with CPFB's new measures effective 1 April 2005, which utilize HDB-assigned private valuers to determine priority ranking for housing loans. Consequently, lenders must ensure their loan calculations do not exceed the CPFB-accepted valuation to maintain the prudent 20% buffer against property price declines.
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