View Full Version : MAS Introduces Debt Servicing Framework for Property Loans
Propertykaiser
28-06-13, 20:51
https://www.propertykaiser.com.sg/article/mas-introduces-debt-servicing-framework-for-property-loans#.Uc2Gv_mutdU
princess_morbucks
28-06-13, 20:53
https://www.propertykaiser.com.sg/article/mas-introduces-debt-servicing-framework-for-property-loans#.Uc2Gv_mutdU
We are already discussing it in the thread "new cooling measure".
Please post there.
Thanks.
Does the new rule applies to the new buyers only or to all (old and new buyers)?
Can anyone explain to me what does it mean by :-
"apply a haircut of at least 30% to all variable income (e.g. bonuses) and rental income"
Thanks.
princess_morbucks
28-06-13, 21:37
Does the new rule applies to the new buyers only or to all (old and new buyers)?
Can anyone explain to me what does it mean by :-
"apply a haircut of at least 30% to all variable income (e.g. bonuses) and rental income"
Thanks.
Sis, these have been discussed in the thread "New cooling measures".
Please go there for answers and discussion.
Sis, these have been discussed in the thread "New cooling measures".
Please go there for answers and discussion.
Have been very busy these few days, so didn't follow the threads here for quite a while.
Propertykaiser
28-06-13, 23:13
Does the new rule applies to the new buyers only or to all (old and new buyers)?
Can anyone explain to me what does it mean by :-
"apply a haircut of at least 30% to all variable income (e.g. bonuses) and rental income"
Thanks.
For those taking new mortgage loan wef 29 Jun 2013.
Say if your variable income is $2000 per month. Bank will now consider only 70% of the $2000 i.e. $1400 as your variable income. This will be used to calculate the Total Debt Service Ratio.
For those taking new mortgage loan wef 29 Jun 2013.
Say if your variable income is $2000 per month. Bank will now consider only 70% of the $2000 i.e. $1400 as your variable income. This will be used to calculate the Total Debt Service Ratio.
Thank you so much. For those average income earners who wait and wait, now jialat liow unless they have extra cash.:simmering:
Propertykaiser
29-06-13, 11:08
Thank you so much. For those average income earners who wait and wait, now jialat liow unless they have extra cash.:simmering:
You are welcomed. The MAS rule is simply being financial prudent. In most cases, general guideline is 30-40% service ratio. So, the 60% is quite generous.
This may be tighten if government feels the market is still too hot.
I think the measure is good for banks and investors. It just serves as alarm bell for everyone.
You are welcomed. The MAS rule is simply being financial prudent. In most cases, general guideline is 30-40% service ratio. So, the 60% is quite generous.
This may be tighten if government feels the market is still too hot.
Thank you so much. For those average income earners who wait and wait, now jialat liow unless they have extra cash.:simmering:
Actually this 60% rule have been used by most banks anyway. and bonus n commission hair cut are nothing new. only thing is the mortgage name and owner name now must be same, using average age of owners for the loan calculation and the recommended 3.5% TDSR interest calculation thts all.
60% already exists. Most are 50-60%. If 30%, who can afford to borrow?
60% already exists. Most are 50-60%. If 30%, who can afford to borrow?
why not? if prices drop 30%.
This will become the market for the rich only. They have enough money to play with. Average people with 2 ppty will try to hold on to their ppty. If they sell away 1 of their ppty and buy another one, they will be hit by the cm7 as well as the current one.
New rules is based on basic income but gahment gives out rebates (eg GST Vouchers) is based on the basic + variable income, not fair leh.
This will become the market for the rich only. They have enough money to play with. Average people with 2 ppty will try to hold on to their ppty. If they sell away 1 of their ppty and buy another one, they will be hit by the cm7 as well as the current one.
New rules is based on basic income but gahment gives out rebates (eg GST Vouchers) is based on the basic + variable income, not fair leh.
Not Fair ? work harder. Since when the world is fair. ? When those over leveraged loose money and those with holding power can see it through a slow down. then like that people will say not fair.
So? be prudent. and work harder.
Very funny. Why no 60% Debt-service-ratio for REITs and corporations and discount their rental income by 30% since we know they can also be very over-leveraged hah? :rolleyes:
If world don't need to be fair as you mentioned, then Singapore doesn't need to keep singing and demanding citizens to pledge that they will build and maintain a "democratic country" pledged to build a "democratic society" based on justice and equality as in the Singapore National Pledge:
We, the citizens of Singapore,
pledge ourselves as one united people,
regardless of race, language or religion,
to build a democratic society
based on justice and equality
so as to achieve happiness, prosperity and
progress for our nation.
So what you said are just bull-shit. If what you said is Singapore Govt's point of view that world is unfair and Singapore govt doesn't need to be fair, Singapore pledge should be changed to:
We the citizens of Singapore,
pledged ourselves as each for our own people
to build a does not need to be fair society
based on unfair justice and equality... :tongue3:
It is not govt's job to ensure people don't over-leverage and whether they lose money according to their own venture. If you think so, you can just pledge all your money to the govt for them to manage. Other people are not so stupid and need to be like you, cannot manage own money and keep crying for govt to manage for you. :tsk-tsk:
Not Fair ? work harder. Since when the world is fair. ? When those over leveraged loose money and those with holding power can see it through a slow down. then like that people will say not fair.
So? be prudent. and work harder.
Originally Posted by irisng
This will become the market for the rich only. They have enough money to play with. Average people with 2 ppty will try to hold on to their ppty. If they sell away 1 of their ppty and buy another one, they will be hit by the cm7 as well as the current one.
New rules is based on basic income but gahment gives out rebates (eg GST Vouchers) is based on the basic + variable income, not fair leh.
Not Fair ? work harder. Since when the world is fair. ? When those over leveraged loose money and those with holding power can see it through a slow down. then like that people will say not fair.
So? be prudent. and work harder.
I have worked very hard already:D . My variable income is so much more than my basic salary that I'm not eligible for the GST vouchers, in fact not eligible for all the rebates that gahment had given out so far and yet I still need to pay for my "high" income tax. So why work so hard now, loan based on basic salary, rebates entitlement based on basic+variable.:scared-3: Earn enough to eat, can already.:D
No la sis iris. Variable still counted ma. Except 30% haircut.
Bro teddybear... u r right la. Else why we still need to pledge "to build"...
We would have said "have built".
To have to pledge to do something, means it has not been achieved yet or that it is difficult to achieve or maintain even if achieved.
No la sis iris. Variable still counted ma. Except 30% haircut.
Bro teddybear... u r right la. Else why we still need to pledge "to build"...
We would have said "have built".
To have to pledge to do something, means it has not been achieved yet or that it is difficult to achieve or maintain even if achieved.
Oic, I've always been thinking it is based on basic salary only, forgotten about the "haircut". Oh yes, my husband just went for his "haircut" yesterday.:D
Oic, I've always been thinking it is based on basic salary only, forgotten about the "haircut". Oh yes, my husband just went for his "haircut" yesterday.:D
Lol. How much did he spend on the haircut?
This will become the market for the rich only. They have enough money to play with. Average people with 2 ppty will try to hold on to their ppty. If they sell away 1 of their ppty and buy another one, they will be hit by the cm7 as well as the current one.
New rules is based on basic income but gahment gives out rebates (eg GST Vouchers) is based on the basic + variable income, not fair leh.
Actually I noticed for the past few CM including the last one.. Gov is playing very cautiously just to cool & not to crash the pty mkt..
It make the buyers harder to buy.. at the the same time make the sellers think twice whether to sell cos replacement cost will be higher or maybe impossible if the sellers make a wrong decision..
That's why we are seeing price still climbing.. but at a much slower pace
Actually I noticed for the past few CM including the last one.. Gov is playing very cautiously just to cool & not to crash the pty mkt..
It make the buyers harder to buy.. at the the same time make the sellers think twice whether to sell cos replacement cost will be higher or maybe impossible if the sellers make a wrong decision..
That's why we are seeing price still climbing.. but at a much slower pace
And big quantum CCR will be even more jia lat..... Very limited upward increase. CCR demand will be transfered to OCR.
And big quantum CCR will be even more jia lat..... Very limited upward increase. CCR demand will be transfered to OCR.
Due to the ABSD.. it eliminate away the foreign buying interest which use to concentrated in the CCR.. Yes & it transferred some of the demand to RCR & down to OCR..
Lol. How much did he spend on the haircut?
$5 only at Geylang, good deal er!
$5 only at Geylang, good deal er!
But its the tip that can cost $50
Actually I noticed for the past few CM including the last one.. Gov is playing very cautiously just to cool & not to crash the pty mkt..
It make the buyers harder to buy.. at the the same time make the sellers think twice whether to sell cos replacement cost will be higher or maybe impossible if the sellers make a wrong decision..
That's why we are seeing price still climbing.. but at a much slower pace
The govt make more money right. more stamp duty, tax etc.
lawyer , bankers, agents, developers, builder, everybody makes money.
why then do they want to slow down the sales???
by implementing so many CM:cool:
rymccondo77
01-07-13, 14:01
The govt make more money right. more stamp duty, tax etc.
lawyer , bankers, agents, developers, builder, everybody makes money.
why then do they want to slow down the sales???
by implementing so many CM:cool:
Govt also doesn't want people to over leverage.
And I personally think if there were no CMs, the prices will be much higher and non-investors (i.e. buy for own stay) / Singaporeans will not be able to buy.
This will become the market for the rich only. They have enough money to play with.
not necc. even the rich r affected. eg the rich wanna buy a ppty priced at 1.5mil. they hv max the 60% from the previous purchases. So even though they have 1 mil now and nid to borrow oni another 500k, they are unable to do so now.
But its the tip that can cost $50
No tip, flat $5, somemore is an aircond saloon.:) Went there twice already. It is a decent saloon.
not necc. even the rich r affected. eg the rich wanna buy a ppty priced at 1.5mil. they hv max the 60% from the previous purchases. So even though they have 1 mil now and nid to borrow oni another 500k, they are unable to do so now.
Rich people need not borrow so much money lah.:D They borrow money from the bank because they want to use their ready cash for other investments loh, that's my :2cents: .
Govt also doesn't want people to over leverage.
And I personally think if there were no CMs, the prices will be much higher and non-investors (i.e. buy for own stay) / Singaporeans will not be able to buy.
Not only that..
Without all the CMs.. pty price could have reach an unsustainable level which is much higher & much faster.. and is too dangerous..
Gov need to moderate the rate of price increase. Just in case if there is a price correction.. the impact is not too hard.. and the next support line/lines is not too far below
Because of ABSD on foreigners etc, foreigners also all shift to buy OCR properties for flipping (because less capital less risk), causing OCR properties to go sky high, thereby dimming the hope of HDB upgraders or make them pay sky-high price for OCR private properties! I think all those ABSD on foreigners' policy have not been well thought out! :doh:
Due to the ABSD.. it eliminate away the foreign buying interest which use to concentrated in the CCR.. Yes & it transferred some of the demand to RCR & down to OCR..
Because of ABSD on foreigners etc, foreigners also all shift to buy OCR properties for flipping (because less capital less risk), causing OCR properties to go sky high, thereby dimming the hope of HDB upgraders or make them pay sky-high price for OCR private properties! I think all those ABSD on foreigners' policy have not been well thought out! :doh:
Many OCR 99-LH new launches already crossed into RCR FH resale mkt of 1.4-1.8k psf..
Some doesn't bother whether is OCR.. As long as beside MRT.. they will just throw in the cheque & wait for durian to drop :D
phantom_opera
02-07-13, 09:00
we are at OCR golden age, malls everywhere thanks to REIT, middle tier jobs goto places like CBP or IBP
how long this can last is anybody guess, low interest rate continue to provide fuel to fire
Because of ABSD on foreigners etc, foreigners also all shift to buy OCR properties for flipping (because less capital less risk), causing OCR properties to go sky high, thereby dimming the hope of HDB upgraders or make them pay sky-high price for OCR private properties! I think all those ABSD on foreigners' policy have not been well thought out! :doh:
looks like there is use for ECs again after all.
rymccondo77
02-07-13, 11:06
looks like there is use for ECs again after all.
Yup - think ECs will be around for some time yet.
Rich people need not borrow so much money lah.:D They borrow money from the bank because they want to use their ready cash for other investments loh, that's my :2cents: .
if a rich person has 1.5 mil, he wun use it to pay full for 1 ppty, he will use it to buy several ppty la! :tsk-tsk:
Without all the CMs.. pty price could have reach an unsustainable level which is much higher & much faster.. and is too dangerous..
depends actually. some of the CMs like ssd & absd has the impact of causing prices to escalate higher than it shd be.
Remember: whatever extra a buyer pay today, he will collect tis amt back from the subsequent buyer :banghead:
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