Post Fear Bubble, Singapore Crop Tenor mortgage from 50 So 35 Yearstitle

Jakarta - Singapore Central Bank issued a policy to tighten lending housing sector. Monetary Authority of Singapore is apparently worried bubble bubble alias that can be harmful to Singapore's economy.


The Monetary Authority of Singapore (MAS) said in a statement pegged the maximum mortgage term to 35 years.

"This step is part of the MAS government's aim to avoid price bubbles and encourage long-term stability in the property market," said MAS as reported by AFP on Friday (10/05/2012).

"Maximum tenor of new residential property loans will be pegged to 35 years. Addition, the rule also applies strict loan-to-value," MAS added.

Rules that will apply from October 6, 2012 This goes hand in hand with the Singapore government's efforts to rein in residential property prices since 2009. Previously, banks in Singapore has been offering home loans with a tenor of 50 years. Low interest rates tend to persist for some time and will continue to drive demand in the residential property market.

CIMB economist, Song Seng Wun said the monetary authority has seen the property bubble fears.

He said the market is in a stage of alert or danger due to low interest rates and easy credit.

"If interest rates suddenly rise, borrowers will face great pressure and distress settled home. This could shake the Singapore economy," he said.
source: detik.com

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