minute test Property cooling measures: Govt announces tighter loan rules, private home owners can't buy HDB resale flats for 15 months
SINGAPORE — In a bid to moderate demand for public housing, the authorities have announced that private property owners will now have to serve a temporary wait-out period of 15 months after selling their homes before they are allowed to buy a non-subsidised resale flat.
New property cooling measures were announced late on Sept 29, 2022 in response to a “clear upward momentum" in resale prices for Housing and Development Board flats, the authorities said.
- Private property owners will now have to wait for 15 months after selling their property before they can buy a non-subsidised HDB resale flat
- The Government said this is a temporary measure to moderate demand and ensure that resale flats remain affordable for buyers
- The maximum loan amount limits for housing loans will also be tightened
- This will help buyers borrow money prudently and avoid future difficulties in repaying home loans
- The loan-to-value limit for HDB loans will also be lowered from 85 per cent to 80 per cent
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SINGAPORE — In a bid to moderate demand for public housing, the authorities have announced that private property owners will now have to serve a temporary wait-out period of 15 months after selling their homes before they are allowed to buy a non-subsidised resale flat.
In addition, new rules have also been announced to tighten maximum loan amount limits, in order to promote prudent borrowing by property buyers as interest rates rise.
The loan-to-value limit for loans taken with the Housing and Development Board (HDB) will also be lowered from 85 per cent to 80 per cent. This means that the maximum loan amount HDB will lend to flat buyers will be 80 per cent of the property purchase price.
These new measures were announced by the Monetary Authority of Singapore, Ministry of National Development (MND) and HDB in a joint statement late on Thursday (Sept 29) night, about 20 minutes before they took effect at midnight.
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