Government caps tenure of residential loans at 35 years
IN a bold move to avoid a property bubble, the Government has capped all new loans for residential properties at 35 years, starting tomorrow.
In a statement released on Friday, the Monetary Authority of Singapore also said loans exceeding 30 years will face a tighter loan-to-value limits.
Homeowners can only borrow 40 per cent of the property's valuation should they have an outstanding mortgage, and 60 per cent if they do not.
This rule also applies to those whose loan period extends beyond the retirement age of 65.