The Housing Board has further tightened rules on mortgages in the resale market, and discourage those who buy public flats from overspending.

Resale flat buyers who take HDB loans can now only use up to 30 per cent of their gross monthly income to repay their loans, down from 35 per cent.

This is now identical to the current mortgage servicing ratio (MSR) limit for private loans, which was similarly adjusted by the Monetary Authority of Singapore in January.

The maximum repayment period for HDB housing loans will also be lowered from 30 to 25 years, and from 35 to 30 years for bank loans taken to buy HDB flats, including those under the Design, Build and Sell Scheme.

The changes were announced by National Development Minister Khaw Boon Wan on Tuesday.