Residential Property Curbs And Policies

Property Cooling Measures Timeline

Policy
Effective Date
Property Cooling Measures
9 Dec 2013EC Cancellation Fees Adjusted Down From 20% to 5% .

Second-Timer Applicants to pay Resale Levy for land sites launched on or after 9/12/2013.

Mortgage Servicing Ratio (MSR) revised from 60% to 30% of a borrower's gross monthly income. The MSR cap will apply to EC purchases effective 10/12/2013.
27 Aug 2013Singapore Permanent Resident Households (SPR) can buy a resale HDB flat only after 3 years from the date of obtaining SPR status.

HDB housing loan tenure is reduced from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit is reduced from 35% to 30% of the borrower's gross monthly income.

Maximum tenure of new housing loans and re-financing facilities granted by financial institutions for HDB flats (including DBSS flats) is reduced from 35 years to 30 years. New loans with tenure exceeding 25 years and up to 30 years will be subject to tighter LTV limits.
29 Jun 2013 Total Dept Servicing Ratio (TDSR): Financial institutions are required to factor in borrowers' other financial debt obligations when granting property loans. Total monthly repayment of debt obligations should not exceed 60 per cent of gross monthly income.

MAS requires:
- borrowers named on a property loan to be the mortgagors of the residential property for which the loan is taken;

- "guarantors" who are standing guarantee for borrowers otherwise assessed by the financial institutions at the point of application for the housing loan not to meet the TDSR threshold for a property loan to be brought in as co-borrowers;

- in the case of joint borrowers, that financial institutions use the income-weighted average age of borrowers when applying the rules on loan tenure.
12 Jan 2013 1. Additional Buyer Stamp Duty:
Citizens pay 0% for 1st property | 7% for 2nd property | 10% for 3rd property.
PRs pay 5% for 1st property | 10% for 2nd property onwards.
Foreigners and non-individuals now pay 15%.

2. Loan To Value: LTV - 2nd loan - 50% | 3rd loan - 40%; (reduced down from 60%)
LTV - non-individuals' - now 20% (reduced down from 40%).

3. Mortgage Servicing Ratio (MSR) for HDB loans now capped at 35% of gross monthly income (from 40%); MSR for loans from financial institutions capped at 30%.

4. PRs no longer allowed to rent out entire HDB flat.
6 Oct 2012 Mortgage tenures capped at a maximum of 35 years.
Loans over 30 years or loans beyond retirement age of 65 years: LTV lowered to 60% for first mortgage | to 40% for second and subsequent mortgages.
LTV for non-individuals lowered to 40%.
8 Dec, 2011ABSD introduced:
Singaporeans buying third and subsequent property pay 3%.
PRs buying second and subsequent property pay 3%.
Foreigners and non-individuals pay 10%.

Developers purchasing more than four residential units and following through on intention to develop residential properties for sale would be exempted from paying ABSD. To qualify, developers have to produce proof of development and sale within five years.
14 Jan 2011Holding period for imposition of Seller Stamp Duty (SSD) increased to four years from three.
SSD rates raised to 16%, 12%, 8% and 4% of consideration.
LTV lowered to 60% from 70% for second property.
LTV for non-individual residential purchasers capped at 50%.
30 Aug 2010Holding period for imposition of SSD increased to three years from one.
Minimum cash payments raised to 10% from 5% for buyers with one or more outstanding housing loans.
LTV lowered to 70% from 80% for second properties.
20 Feb 2010 Introduction of SSD for residential property and land sold within one year of purchase.
LTV lowered to 80% from 90% on all housing loans except HDB loans.
14 Sep 2009Interest absorption scheme (deferment of instalments until TOP) and interest-only housing loans (interest payment only until TOP) were scrapped for all private properties.