Home loans harder to get with tighter rules
More applications being rejected and wait for approvals is longer: Analysts
Published on Apr 14, 2014 8:39 AM
Home buyers have found it harder to obtain loans in the wake of tighter mortgage rules imposed last year.
Real estate players said buyers now have to wait longer for their loans to be approved and more are having their loan applications rejected, after the total debt servicing ratio (TDSR) framework was put in place in June by the Monetary Authority of Singapore (MAS).
Ms Christine Li, the head of research and consultancy at OrangeTee, told The Straits Times that only 12 potential buyers out of 80 were able to get their full desired loans for a property project launched last year after the TDSR was implemented.
Another property analyst disclosed that bankers have said loan rejection rates rose to as much as 20 to 25 per cent when the TDSR was implemented, where previously such rejections were rare.
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TOO MANY CHECKS
It's making the banks very frustrated, it's making it tough on the buyers and it's making it difficult for agents to sell the units too.
- A property analyst, on the impact of the TDSR framework