Home loan curbs having some effect, property market stabilising: Tharman

Curbs on home loans are having some effect, with the market stabilising, said Deputy Prime Minister Tharman Shanmugaratnam on Sunday morning.

Commenting on the curbs which took effect on June 29, Mr Tharman said Singaporeans should stay fairly conservative when it comes to borrowing and noted that interest rates are certain to rise.

The home loan curbs require lenders to consider a borrower's total debt obligations. Banks cannot approve a loan if the monthly repayments of a buyer's total debt obligations exceed 60 per cent of his gross monthly income.

Mr Tharman was speaking on the sidelines of the Jurong Lake Run, which saw 15,000 participants. The run raised $140,000 for four beneficiaries including Lakeside Family Centre.