View Full Version : MAS broadens TDSR exemptions to cover refinancing of loans for owner-occupied propert
princess_morbucks
10-02-14, 15:59
The Business Times @BTBreakingnews (https://twitter.com/BTBreakingnews) 3m (https://twitter.com/BTBreakingnews/status/432799984132452353) #MAS (https://twitter.com/search?q=%23MAS&src=hash) broadens exemption from Total Debt Servicing Ratio threshold for refinancing owner-occupied residential properties #SingaporeProperty (https://twitter.com/search?q=%23SingaporeProperty&src=hash)
princess_morbucks
10-02-14, 16:02
http://www.todayonline.com/business/mas-broadens-tdsr-exemptions-cover-refinancing-loans-owner-occupied-properties
SINGAPORE — The Monetary Authority of Singapore (MAS) has widened the existing exemptions from the Total Debt Servicing Ratio (TDSR) to cover the refinancing of loans for owner-occupied properties that were bought before the measure was introduced last year.
In a statement, the MAS said it had received feedback from borrowers who have faced challenges refinancing such loans.
Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced will be exempted from the TDSR threshold as long as the buyer occupies the home that is being refinanced.
The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums that are owner-occupied and were purchased before the respective MSR implementation dates of Jan 12 2013 and Dec 10 2013.
A similar concession will apply to loan tenures. In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current limits will be allowed to maintain the current tenure when refinancing the loan.
princess_morbucks
10-02-14, 16:03
Hooray for those trying to refinance their loan on owner occupied properties that were bought before TDSR was implemented!!
This should be considered as good news for the property market.
when they say EC are exempted does that include fully privatized EC? ie, EC that is more than 10 years old?
http://www.todayonline.com/business/mas-broadens-tdsr-exemptions-cover-refinancing-loans-owner-occupied-properties
Business
MAS broadens TDSR exemptions to cover refinancing of loans for owner-occupied properties
Move comes after MAS receives feedback from borrowers who have had difficulties refinancing such loans
Published: 10 February, 4:54 PM
SINGAPORE — The Monetary Authority of Singapore (MAS) has widened the existing exemptions from the Total Debt Servicing Ratio (TDSR) to cover the refinancing of loans for owner-occupied properties that were bought before the measure was introduced last year.
In a statement, the MAS said it had received feedback from borrowers who have faced challenges refinancing such loans.
Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced will be exempted from the TDSR threshold as long as the buyer occupies the home that is being refinanced.
The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums that are owner-occupied and were purchased before the respective MSR implementation dates of Jan 12 2013 and Dec 10 2013.
A similar concession will apply to loan tenures. In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current limits will be allowed to maintain the current tenure when refinancing the loan.
phantom_opera
10-02-14, 16:31
this is a very small step .. no enough to stop the price crash of CDL and CAPL
i smell loophole :rolleyes:
princess_morbucks
10-02-14, 16:35
More here :
http://business.asiaone.com/property/news/mas-broadens-tdsr-loans-refinanced-owner-occupied-properties
SINGAPORE - The Monetary Authority of Singapore (MAS) will exempt home owners from the Total Debt Servicing Ratio (TDSR) if they are refinancing their loan for the property they live in, even if they own other properties and are servicing other home loans, it said on Monday.
http://www.asiaone.com/html/images/logos/st_logo.jpg (http://www.straitstimes.com)
Get the full story from The Straits Times (http://www.straitstimes.com).
Here is the press release from MAS:
The Monetary Authority of Singapore (MAS) has received feedback from borrowers who face challenges refinancing loans for owner-occupied properties which were bought before the introduction of the Total Debt Servicing Ratio (TDSR) rules. MAS has decided to broaden the existing exemption from the TDSR threshold of 60 per cent for such loans to ease the debt servicing burden of these borrowers.
Refinancing of owner-occupied property loans
Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced - i.e. the Option to Purchase (OTP) of the residential property was granted before 29 June 2013 - will be exempted from the TDSR threshold as long as he occupies the residential property that is being refinanced.1 This is a concession compared to the current rules, which also require that he does not own any other property, or have any other outstanding property loan.
The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums (ECs) that are owner-occupied and were purchased before their respective MSR implementation dates.2
A similar concession will apply with regard to loan tenures, for residential properties purchased before the respective implementation dates for the loan tenure limits.3 In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current regulatory limits4 will be allowed to maintain the remaining tenures of their loans at the point of refinancing.
Refinancing of investment property loans
The TDSR threshold of 60 per cent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates. However, MAS recognises that some borrowers may face challenges in right-sizing their debt obligations in the short term; the starting level of debt may be too high and there may be significant costs involved if they had to sell their properties to reduce their leverage.
Therefore, MAS will allow a transition period until 30 June 2017, during which a borrower may refinance his investment property loans above the 60 per cent threshold, provided he meets the following conditions:
(a) the OTP of the property was granted before 29 June 2013;
(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and
(c) the borrower fulfils the FI's credit assessment.
The changes are intended to help borrowers ease their immediate debt servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans as early as possible.
Borrowers should be aware that the current low interest rate environment will not persist indefinitely. When interest rates rise, borrowers will face higher mortgage repayments. Borrowers engaging in refinancing should therefore exercise prudence and review their debt commitments.
The revised rules will take immediate effect.
HURRAY!!:cheers5: for good brother Tharman!
CM -0.1 MAS broadens TDSR for loans refinanced for owner-occupied properties
princess_morbucks
10-02-14, 16:57
In summary :
owner occupied homes bought before the implementation of TDSR and MSR (applicable to HDB and EC; msr not applicable to pte) will be exempted from the TDSR and MSR if refinancing is done before 30 June 2017.
princess_morbucks
10-02-14, 16:58
Now...what is owner occupied home?
If husband stay in one home that is uner his name and wife stay in another home under her name, are both owner occupied ?
This is good news to many home owners who are looking to pay down their loans :)
princess_morbucks
10-02-14, 17:10
So for the next 3 years (till 30 Jun 2017) they can refinance it.
So quickly go refinance it now, then before 30 Jun 2017, go refinance again if interest rates are low?
Is Tharman throwing a life line because he is expecting interest rate to rise?
princess_morbucks
10-02-14, 18:06
Is Tharman throwing a life line because he is expecting interest rate to rise?
This is what I concluded too.
Scary!:scared-3:
bargain hunter
10-02-14, 18:21
me feels it is not so fun for bargain hunter liao. :tongue3::ashamed1::ashamed1:
princess_morbucks
10-02-14, 18:58
A clearer explanation :
http://www.channelnewsasia.com/news/business/singapore/mas-relaxes-home/991300.html?cid=TWTCNA&utm_source=dlvr.it&utm_medium=twitter
SINGAPORE: The Monetary Authority of Singapore (MAS) will relax its home financing rules for homebuyers who had committed to residential property purchases before the rules were announced last year.
This applies to buyers of private property who had signed an option to purchase the property before June 29, 2013.
If they are the occupiers of the property, they will be exempt from the Total Debt Servicing Ratio (TDSR) rules.
For those who bought the property for investment, they will have until June 30, 2017, to reduce their debt - such that their monthly debt repayments do not exceed 60 percent of their income.
HDB and Executive Condominium (EC) owners, who bought before the mortgage servicing rules for these categories were introduced, will enjoy similar exemptions.
MAS latest move was welcomed by the banking industry.
Ms Koh Ching Ching, group head of corporate communications at Oversea-Chinese Banking Corp (OCBC), said: "Some borrowers with good reasons to refinance will now face less difficulties in doing so. The older home loans were not assessed with the new TDSR rules and hence the exemption for properties bought before the introduction of the stipulated TDSR rules is therefore fair."
- CNA/de
The key is the owner must stay there.. This cannot save those over-leveraged people who bought multi-property. But it is good as it at least give those who bought the house for own stay a chance to refinance rather than be on the chopping board...
bargain hunter
10-02-14, 19:48
Refinancing of investment property loans
5 The TDSR threshold of 60 per cent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates. However, MAS recognises that some borrowers may face challenges in right-sizing their debt obligations in the short term; the starting level of debt may be too high and there may be significant costs involved if they had to sell their properties to reduce their leverage.
6 Therefore, MAS will allow a transition period until 30 June 2017, during which a borrower may refinance his investment property loans above the 60 per cent threshold, provided he meets the following conditions:
(a) the OTP of the property was granted before 29 June 2013;
(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and
(c) the borrower fulfils the FI’s credit assessment.
7 The changes are intended to help borrowers ease their immediate debt servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans as early as possible.
8 Borrowers should be aware that the current low interest rate environment will not persist indefinitely. When interest rates rise, borrowers will face higher mortgage repayments. Borrowers engaging in refinancing should therefore exercise prudence and review their debt commitments.
9 The revised rules will take immediate effect.
sort of saves multiple property owner leh.
The key is the owner must stay there.. This cannot save those over-leveraged people who bought multi-property. But it is good as it at least give those who bought the house for own stay a chance to refinance rather than be on the chopping board...
Its applied to own stay units which are bought before the TDSR being implemented.
Its to help people who have already committed before TDSR and are not investors. own stay. which is very reasonable. a blanket application of TDSR is too draconian much like how Malaysia apply their policies.
So still targeting investment but own stay owners are given a life line if they had over stretched when the planed their finance before the TDSR was introduced.
When they say EC, does it mean that EC from primary or also include secondary market?
princess_morbucks
10-02-14, 20:22
When they say EC, does it mean that EC from primary or also include secondary market?
I think they are referring to the new EC.
The loan for the new EC is subjected to MSR.
Those which are 5 years or older are not subjected to the MSR.
http://www.propertyguru.com.sg/question/181895/does-the-msr-of-30-applies-for-resale-ec-buyers-wh
edwinleeap
10-02-14, 20:51
Its applied to own stay units which are bought before the TDSR being implemented.
Its to help people who have already committed before TDSR and are not investors. own stay. which is very reasonable. a blanket application of TDSR is too draconian much like how Malaysia apply their policies.
So still targeting investment but own stay owners are given a life line if they had over stretched when the planed their finance before the TDSR was introduced.
Investors also handed some breathing space till 30 Jun 2017 where they can refinance according to original terms provided they satisfy certain conditions.
Allthepies
10-02-14, 21:00
So property gg to cheong again?! : )
So property gg to cheong again?! : )
Less fire sales, but doesn't seem to be impetus for growth.
So property gg to cheong again?! : )
cheong unlikely but it will give the market some positive boost of confidence.
However just wonder if someone own say 3 properties, A B and C.
Current living in A. Can he do a refinancing on property A, then move to property B after 6 months, do refinancing for property B, and 6 months later, move to property C do a refinancing?
Suppose someone has a fully paid own-stay property, can he re-mortgage without affected by TDSR?
If can, then he can take loan for existing property and use the money to buy a new investment property fully paid.
:confused:
Suppose someone has a fully paid own-stay property, can he re-mortgage without affected by TDSR?
If can, then he can take loan for existing property and use the money to buy a new investment property fully paid.
:confused:
dont ask, just do it. early bird catch the worms
princess_morbucks
10-02-14, 22:10
Suppose someone has a fully paid own-stay property, can he re-mortgage without affected by TDSR?
If can, then he can take loan for existing property and use the money to buy a new investment property fully paid.
:confused:
From what I know, home equity loan cannot be use to buy another residential property.
From what I know, home equity loan cannot be use to buy another residential property.
By right cannot, by left...
thomastansb
10-02-14, 23:05
What about those properties with 30 years loan. Can up to 35 years?
cheong unlikely but it will give the market some positive boost of confidence.
However just wonder if someone own say 3 properties, A B and C.
Current living in A. Can he do a refinancing on property A, then move to property B after 6 months, do refinancing for property B, and 6 months later, move to property C do a refinancing?
Good idea. But by 2017 those classified as non own occupied can not refinance unless meet tdsr.
cheong unlikely but it will give the market some positive boost of confidence.
However just wonder if someone own say 3 properties, A B and C.
Current living in A. Can he do a refinancing on property A, then move to property B after 6 months, do refinancing for property B, and 6 months later, move to property C do a refinancing?
If not tenanted, why not?
What about those properties with 30 years loan. Can up to 35 years?
No la.. Don't over leverage haha
MAS Broadens Exemption from TSDR Threshold for Refinancing of Owner-Occupied Residential Properties Purchased before the Implementation of TSDR Rules
Singapore, 10 February 2014… The Monetary Authority of Singapore (MAS) has received feedback from borrowers who face challenges refinancing loans for owner-occupied properties which were bought before the introduction of the Total Debt Servicing Ratio (TDSR) rules. MAS has decided to broaden the existing exemption from the TDSR threshold of 60 per cent for such loans to ease the debt servicing burden of these borrowers.
Refinancing of owner-occupied property loans
2 Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced – i.e. the Option to Purchase (OTP) of the residential property was granted before 29 June 2013 – will be exempted from the TDSR threshold as long as he occupies the residential property that is being refinanced.1 This is a concession compared to the current rules, which also require that he does not own any other property, or have any other outstanding property loan.
3 The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums (ECs) that are owner-occupied and were purchased before their respective MSR implementation dates.2
4 A similar concession will apply with regard to loan tenures, for residential properties purchased before the respective implementation dates for the loan tenure limits.3 In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current regulatory limits4 will be allowed to maintain the remaining tenures of their loans at the point of refinancing.
Refinancing of investment property loans
5 The TDSR threshold of 60 per cent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates. However, MAS recognises that some borrowers may face challenges in right-sizing their debt obligations in the short term; the starting level of debt may be too high and there may be significant costs involved if they had to sell their properties to reduce their leverage.
6 Therefore, MAS will allow a transition period until 30 June 2017, during which a borrower may refinance his investment property loans above the 60 per cent threshold, provided he meets the following conditions:
(a) the OTP of the property was granted before 29 June 2013;
(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and
(c) the borrower fulfils the FI’s credit assessment.
7 The changes are intended to help borrowers ease their immediate debt servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans as early as possible.
8 Borrowers should be aware that the current low interest rate environment will not persist indefinitely. When interest rates rise, borrowers will face higher mortgage repayments. Borrowers engaging in refinancing should therefore exercise prudence and review their debt commitments.
9 The revised rules will take immediate effect.
***
1 Financial institutions will be required to obtain documentary evidence to verify that the OTP was granted prior to 29 June 2013 and that the borrower occupies the property.
2 The OTP was granted before 12 January 2013 for HDB flats and 10 December 2013 for ECs purchased directly from a property developer.
3 Where the OTP was granted before 28 August 2013 for HDB flats and 6 October 2012 for other residential properties.
4 30 years for HDB flats and 35 years for other residential properties.
http://www.mas.gov.sg/News-and-Publications/Press-Releases/2014/MAS-Broadens-Exemption-from-TSDR-Threshold.aspx
Finally they throw a lifeline to those retired without decent income to repriced... ;-)
Ya.. Although I don't like those people to over-leverage and cause the property to raise over the top, but I feel it is not fair to stop them from refinance suddenly as it will only benefit the banks as normally after the lock-in period, the interest will spike even if SIBOR remain constant.
Ya.. Although I don't like those people to over-leverage and cause the property to raise over the top, but I feel it is not fair to stop them from refinance suddenly as it will only benefit the banks as normally after the lock-in period, the interest will spike even if SIBOR remain constant.
Actually banks are also suffering from all the cooling measures. With buying transaction falling, there will be very little new loans to go around. With this new measures, at least there will be new market for refinancing.
Anyway, PAP are business minded politicians, they will never bite that hands that feed them. After going through this exercise, developers and Singaporeans should start to learn to appreciate the government.
This is a better than nothing news especially to those ec owners.
Ringo idea to move to the respective property at the point of refinancing is interesting but that assumes the tenants agree to move out in time for effective refinancing application date or co share with the applicant's family.
MAS Broadens Exemption from TSDR Threshold for Refinancing of Owner-Occupied Residential Properties Purchased before the Implementation of TSDR Rules
Singapore, 10 February 2014… The Monetary Authority of Singapore (MAS) has received feedback from borrowers who face challenges refinancing loans for owner-occupied properties which were bought before the introduction of the Total Debt Servicing Ratio (TDSR) rules. MAS has decided to broaden the existing exemption from the TDSR threshold of 60 per cent for such loans to ease the debt servicing burden of these borrowers.
Refinancing of owner-occupied property loans
2 Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced – i.e. the Option to Purchase (OTP) of the residential property was granted before 29 June 2013 – will be exempted from the TDSR threshold as long as he occupies the residential property that is being refinanced.1 This is a concession compared to the current rules, which also require that he does not own any other property, or have any other outstanding property loan.
3 The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums (ECs) that are owner-occupied and were purchased before their respective MSR implementation dates.2
4 A similar concession will apply with regard to loan tenures, for residential properties purchased before the respective implementation dates for the loan tenure limits.3 In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current regulatory limits4 will be allowed to maintain the remaining tenures of their loans at the point of refinancing.
Refinancing of investment property loans
5 The TDSR threshold of 60 per cent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates. However, MAS recognises that some borrowers may face challenges in right-sizing their debt obligations in the short term; the starting level of debt may be too high and there may be significant costs involved if they had to sell their properties to reduce their leverage.
6 Therefore, MAS will allow a transition period until 30 June 2017, during which a borrower may refinance his investment property loans above the 60 per cent threshold, provided he meets the following conditions:
(a) the OTP of the property was granted before 29 June 2013;
(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and
(c) the borrower fulfils the FI’s credit assessment.
7 The changes are intended to help borrowers ease their immediate debt servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans as early as possible.
8 Borrowers should be aware that the current low interest rate environment will not persist indefinitely. When interest rates rise, borrowers will face higher mortgage repayments. Borrowers engaging in refinancing should therefore exercise prudence and review their debt commitments.
9 The revised rules will take immediate effect.
***
1 Financial institutions will be required to obtain documentary evidence to verify that the OTP was granted prior to 29 June 2013 and that the borrower occupies the property.
2 The OTP was granted before 12 January 2013 for HDB flats and 10 December 2013 for ECs purchased directly from a property developer.
3 Where the OTP was granted before 28 August 2013 for HDB flats and 6 October 2012 for other residential properties.
4 30 years for HDB flats and 35 years for other residential properties.
http://www.mas.gov.sg/News-and-Publications/Press-Releases/2014/MAS-Broadens-Exemption-from-TSDR-Threshold.aspx
Can make capital repayment to the right loan size after 2017, if needed, and then refinance. :)
Good idea. But by 2017 those classified as non own occupied can not refinance unless meet tdsr.
phantom_opera
11-02-14, 08:31
not bad lah, CDL up 2.2% this morning
Mr Kwek must push more
He wants to launch his southbeach soon. :)
not bad lah, CDL up 2.2% this morning
Mr Kwek must push more
thomastansb
11-02-14, 09:25
Need more money to enjoy life first. Haha.
No la.. Don't over leverage haha
Amber Woods
11-02-14, 09:53
This revision of policy is merely to allow existing owners to refinance their existing loans to capitalise on the current low interest rates. Instead of the banks making more profits, the savings of interest payment is now transferred to home owners which is a politically and socially correct decision by the government.
does this apply to buc properties...:rolleyes:
Anyway, this adjustment will save the life of the property markets and in this way, the goverment is conveying a clear message that they only want to stabalize the market, instead of crashing it. On the other hand, they will take actions to prevent a crash, when necessary.
MAS Broadens Exemption from TSDR Threshold for Refinancing of Owner-Occupied Residential Properties Purchased before the Implementation of TSDR Rules
Singapore, 10 February 2014… The Monetary Authority of Singapore (MAS) has received feedback from borrowers who face challenges refinancing loans for owner-occupied properties which were bought before the introduction of the Total Debt Servicing Ratio (TDSR) rules. MAS has decided to broaden the existing exemption from the TDSR threshold of 60 per cent for such loans to ease the debt servicing burden of these borrowers.
Refinancing of owner-occupied property loans
2 Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced – i.e. the Option to Purchase (OTP) of the residential property was granted before 29 June 2013 – will be exempted from the TDSR threshold as long as he occupies the residential property that is being refinanced.1 This is a concession compared to the current rules, which also require that he does not own any other property, or have any other outstanding property loan.
3 The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums (ECs) that are owner-occupied and were purchased before their respective MSR implementation dates.2
4 A similar concession will apply with regard to loan tenures, for residential properties purchased before the respective implementation dates for the loan tenure limits.3 In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current regulatory limits4 will be allowed to maintain the remaining tenures of their loans at the point of refinancing.
Refinancing of investment property loans
5 The TDSR threshold of 60 per cent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates. However, MAS recognises that some borrowers may face challenges in right-sizing their debt obligations in the short term; the starting level of debt may be too high and there may be significant costs involved if they had to sell their properties to reduce their leverage.
6 Therefore, MAS will allow a transition period until 30 June 2017, during which a borrower may refinance his investment property loans above the 60 per cent threshold, provided he meets the following conditions:
(a) the OTP of the property was granted before 29 June 2013;
(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and
(c) the borrower fulfils the FI’s credit assessment.
7 The changes are intended to help borrowers ease their immediate debt servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans as early as possible.
8 Borrowers should be aware that the current low interest rate environment will not persist indefinitely. When interest rates rise, borrowers will face higher mortgage repayments. Borrowers engaging in refinancing should therefore exercise prudence and review their debt commitments.
9 The revised rules will take immediate effect.
***
1 Financial institutions will be required to obtain documentary evidence to verify that the OTP was granted prior to 29 June 2013 and that the borrower occupies the property.
2 The OTP was granted before 12 January 2013 for HDB flats and 10 December 2013 for ECs purchased directly from a property developer.
3 Where the OTP was granted before 28 August 2013 for HDB flats and 6 October 2012 for other residential properties.
4 30 years for HDB flats and 35 years for other residential properties.http://www.mas.gov.sg/News-and-Publications/Press-Releases/2014/MAS-Broadens-Exemption-from-TSDR-Threshold.aspx
can someone help me with this pls? Does that means my 30 years can increase to 35 years and LTV still remain? thanks
Anyway, this adjustment will save the life of the property markets and in this way, the goverment is conveying a clear message that they only want to stabalize the market, instead of crashing it. On the other hand, they will take actions to prevent a crash, when necessary.
Does it really help? Most of the time the bank spread increased to 1.25% after 3 years and currently banks are offering bank spread of around 1% for 1st 3 years for completed property. So there is only a savings of 0.25%.
Amber Woods
11-02-14, 10:30
Anyway, this adjustment will save the life of the property markets and in this way, the goverment is conveying a clear message that they only want to stabalize the market, instead of crashing it. On the other hand, they will take actions to prevent a crash, when necessary.
The revision was probably to correct the blanket policy which did not allow existing home owners to enjoy lower interest payments (through refinancing) in view of the current low interest rates as per my earlier post suggests.
This revision of policy is merely to allow existing owners to refinance their existing loans to capitalise on the current low interest rates. Instead of the banks making more profits, the savings of interest payment is now transferred to home owners which is a politically and socially correct decision by the government.
Does it really help? Most of the time the bank spread increased to 1.25% after 3 years and currently banks are offering bank spread of around 1% for 1st 3 years for completed property. So there is only a savings of 0.25%.
Agree. I am not sure that I can get a better spread now compared to before.
My last refinancing offer from 2012:
Year 1 at 1M SIBOR +0.65%
Year 2 at 1M SIBOR + 0.65%
Year 3 at 1M SIBOR + 0.65%
Year 4 at 1M SIBOR + 0.65%
Year 5 onward at 1M SIBOR + 0.65%
(## 2 yrs lock )
## Penalty will be charged @1.5% of the loan amount prepaid within the 2 yrs.
OR
Year 1 at 1M SIBOR + 0.75%
Year 2 at 1M SIBOR + 0.75%
Year 3 at 1M SIBOR + 0.75%
Year 4 at 1M SIBOR + 0.75%
Year 5 onward at 1M SIBOR + 0.75%
( ## No lock in )
Agree. I am not sure that I can get a better spread now compared to before.
My last refinancing offer from 2012:
Year 1 at 1M SIBOR +0.65%
Year 2 at 1M SIBOR + 0.65%
Year 3 at 1M SIBOR + 0.65%
Year 4 at 1M SIBOR + 0.65%
Year 5 onward at 1M SIBOR + 0.65%
(## 2 yrs lock )
## Penalty will be charged @1.5% of the loan amount prepaid within the 2 yrs.
OR
Year 1 at 1M SIBOR + 0.75%
Year 2 at 1M SIBOR + 0.75%
Year 3 at 1M SIBOR + 0.75%
Year 4 at 1M SIBOR + 0.75%
Year 5 onward at 1M SIBOR + 0.75%
( ## No lock in )
That is the best rate in history. I missed that window of opportunity that time as my bank loans are still under lock in period. Currently, lowest is 0.95% throughout(correct me if i am wrong and i believe bank spread is going to increase over time) and some banks do not offer legal subsidy which will cost another 2.5k.
Does it really help? Most of the time the bank spread increased to 1.25% after 3 years and currently banks are offering bank spread of around 1% for 1st 3 years for completed property. So there is only a savings of 0.25%.
I do not think the policy is aiming to help people like you. There is no problem for you even if you do not refinance.
The revision was probably to correct the blanket policy which did not allow existing home owners to enjoy lower interest payments (through refinancing) in view of the current low interest rates as per my earlier post suggests.
understand there are people standing sideline to wait for firesale from those who cannot refinance. The policy will at lease influence the sentiment of the market.
Basket! If not for this loosening of CM, many people who can't refinance because of strict TDSR would have to FIRE SALE and the property market will crash very soon! :simmering:
Still, it won't help much, property market crash is still in sight unless further loosening of CMs come since there is now a huge drop in transaction volumes... When volume drop huge, price drop huge is a matter of time! :p
understand there are people standing sideline to wait for firesale from those who cannot refinance. The policy will at lease influence the sentiment of the market.
Amber Woods
11-02-14, 12:12
understand there are people standing sideline to wait for firesale from those who cannot refinance. The policy will at lease influence the sentiment of the market.
This policy revision is to make it more equitable to existing property owners who should not be affected by the change in policy in the first place. It does not help to prevent fire sale since the saving (if any) is very small. It just makes some segment of the people feel that the government is fair and reasonable by allowing them to refinance their property given the current low interest rate.
... i believe bank spread is going to increase over time...
it could be different now, since all existing owners can switch banks. as a result, bank loan rates will start to be competitive again. In the last 8 months, since banks know you cannot move, there is no need to change spreads. Now it's different. it's a free market again.
princess_morbucks
11-02-14, 12:54
That is the best rate in history. I missed that window of opportunity that time as my bank loans are still under lock in period. Currently, lowest is 0.95% throughout(correct me if i am wrong and i believe bank spread is going to increase over time) and some banks do not offer legal subsidy which will cost another 2.5k.
I thought that MAS said no more legal subsidy but since you mentioned the above I googled and found this :
http://www.tnp.sg/content/banks-stop-legal-and-other-fee-subsidies-housing-loans
The Monetary Association of Singapore (MAS) has clarified that banks can continue to offer subsidies of legal and valuation fees to customers. Its rules only prevent banks from packaging legal and valuation fees as part of the property's purchase price.
Banks had earlier said that they had received a reminder from MAS to stop offering the subsidies, which can amount up to $5,000.
Despite the MAS clarification, OCBC and DBS banks said that they have stopped the subsidies. UOB will not offer the subsidies from Oct 5.
bargain hunter
11-02-14, 13:07
me lor. i believe helping the home owners is justified but not overleveraged investors.
understand there are people standing sideline to wait for firesale from those who cannot refinance. The policy will at lease influence the sentiment of the market.
funny le, this thing by MAS.
http://www.mas.gov.sg/News-and-Publications/Press-Releases/2014/MAS-Broadens-Exemption-from-TSDR-Threshold.aspx
1 Financial institutions will be required to obtain documentary evidence to verify that the OTP was granted prior to 29 June 2013 and that the borrower occupies the property.
bank staff goes to your unit to check?
also
http://www.ica.gov.sg/page.aspx?pageid=141
one credit card paper statement send to address A.
second credit card paper statement send to address B.
third credit card paper statement send to address C.
now have internet banking, can just checked online the 3 credit card bills, no need paper statement to be send to the correct address.
as and when necessary, can even bring 12 months worth of credit card statements to change IC's residential address as and when necessary.
if memory serves me right, the expert in moving house should be MCMLXVII, change 8 houses in 2 years. does MCM change his NRIC address each time shift house?
on a side note, i find ICA a bit idiotic.
"Under the National Registration Act, an Identity Card (IC) holder is required to report his/her change of residential address within 28 days."
BUT the supporting documents all requre minimum last 3 months :doh:.
as usual, hopeful, your perspective .... ;)
Actually banks are also suffering from all the cooling measures. With buying transaction falling, there will be very little new loans to go around. With this new measures, at least there will be new market for refinancing.
Anyway, PAP are business minded politicians, they will never bite that hands that feed them. After going through this exercise, developers and Singaporeans should start to learn to appreciate the government.
http://www.skyscrapercity.com/showthread.php?t=1650487
They need to create money since the US is still printing 65 Billion a month.
The Federal Open Market Committee said yesterday it will cut monthly bond purchases by $10 billion to $65 billion, citing labor-market indicators that “were mixed but on balance showed further improvement” and economic growth that has “picked up in recent quarters.”
It was the first meeting without a dissent since June 2011, showing the tapering strategy has brought together policy makers concerned the Fed’s record $4.1 trillion balance sheet risks causing asset price bubbles with those who, like Vice Chairman Yellen, say more needs to be done to reduce unemployment.
http://www.bloomberg.com/news/2014-01-29/fed-cuts-qe-to-65-billion-pace-as-labor-market-improves-further.html
funny le, this thing by MAS.
http://www.mas.gov.sg/News-and-Publications/Press-Releases/2014/MAS-Broadens-Exemption-from-TSDR-Threshold.aspx
1 Financial institutions will be required to obtain documentary evidence to verify that the OTP was granted prior to 29 June 2013 and that the borrower occupies the property.
bank staff goes to your unit to check?
also
http://www.ica.gov.sg/page.aspx?pageid=141
one credit card paper statement send to address A.
second credit card paper statement send to address B.
third credit card paper statement send to address C.
now have internet banking, can just checked online the 3 credit card bills, no need paper statement to be send to the correct address.
as and when necessary, can even bring 12 months worth of credit card statements to change IC's residential address as and when necessary.
if memory serves me right, the expert in moving house should be MCMLXVII, change 8 houses in 2 years. does MCM change his NRIC address each time shift house?
on a side note, i find ICA a bit idiotic.
"Under the National Registration Act, an Identity Card (IC) holder is required to report his/her change of residential address within 28 days."
BUT the supporting documents all requre minimum last 3 months :doh:.
don't say so loud lah...
Got so many people need to refinance? The old packages look OK to me (those signed 2 to 3 years ago).
I reviewed another mortgage which was signed up in 2010. The current rate is 1.25% above 1 month SOR (for the duration of the tenure). The banks not currently offering 1M SOR as far as I am aware. 1M SOR is lower than 3M SIBOR at today's rate and even with a lower spread (0.8%) on 3M SIBOR that is currently offered by the banks, there isn't a significant difference with 1.25% above 1M SOR. Unless the banks drop their spreads to compete, I find not much advantage to re-finance the 1.25% + 1M SOR package. When interest rates rise, this may change but we have until 2017 to wait and see.
don't say so loud lah...
Everybody know, chose to open one eye close one eye.
Everybody know US is printing money, guess what they do?
Moral of the story those who chose to do something and those who chose to do nothing (complain, cry, .........)
Got so many people need to refinance? The old packages look OK to me (those signed 2 to 3 years ago).
I reviewed another mortgage which was signed up in 2010. The current rate is 1.25% above 1 month SOR (for the duration of the tenure). The banks not currently offering 1M SOR as far as I am aware. 1M SOR is lower than 3M SIBOR at today's rate and even with a lower spread (0.8%) on 3M SIBOR that is currently offered by the banks, there isn't a significant difference with 1.25% above 1M SOR. Unless the banks drop their spreads to compete, I find not much advantage to re-finance the 1.25% + 1M SOR package. When interest rates rise, this may change but we have until 2017 to wait and see.
Got so many people need to cash out(to convert (noncash assets) to cash). Huat Ah....
bargain hunter
11-02-14, 17:08
it is those whose loans have completed the 2 to 3 years ago. the rates jump after that and if they can't refinance, they are at the mercy of the banks' board rates.
Got so many people need to refinance? The old packages look OK to me (those signed 2 to 3 years ago).
I reviewed another mortgage which was signed up in 2010. The current rate is 1.25% above 1 month SOR (for the duration of the tenure). The banks not currently offering 1M SOR as far as I am aware. 1M SOR is lower than 3M SIBOR at today's rate and even with a lower spread (0.8%) on 3M SIBOR that is currently offered by the banks, there isn't a significant difference with 1.25% above 1M SOR. Unless the banks drop their spreads to compete, I find not much advantage to re-finance the 1.25% + 1M SOR package. When interest rates rise, this may change but we have until 2017 to wait and see.
Our bros/sis seem to be hinting that this will be used as a loophole to get equity loans beyond the TDSR limits. This seems to be financially a bit risky if used to bypass the safeguards against overleveraging.
Our bros/sis seem to be hinting that this will be used as a loophole to get equity loans beyond the TDSR limits. This seems to be financially a bit risky if used to bypass the safeguards against overleveraging.
When they print 65 billion a month, what will you do?
1. Print money.
2. Appreciate your money.
3. Increase interest rate.(so that 65 and above can get more return from their saving)
If you have notice, most of the CM are time after the Central Bank meeting.
Don't think you can bypass la.. If caught.. penalties not worth it.
Don't think you can bypass la.. If caught.. penalties not worth it.
What are the penalties btw?
Who say can cash out? Don't think so and too early to guess
proud owner
11-02-14, 21:36
on a side note, i find ICA a bit idiotic.
"Under the National Registration Act, an Identity Card (IC) holder is required to report his/her change of residential address within 28 days."
BUT the supporting documents all requre minimum last 3 months :doh:.
yes indeed.
in fact I had this problem once.
I went to neighbourhood police post to update my address on my IC.
they needed a letter, PUB or bank statement etc that bore my name and the address I wanted to update.
LPPL... cos within 28 days ... I did not receive any bills within that month ..
thomastansb
11-02-14, 22:37
Funny meh? I think you are the funny one. You should read carefully again.
Change of address within 28 days. Bills within the last 3 months (not 3 months of bills).
If I were you, I will change my address 1 month before I move in. OR, go ICA website and request for a change of address letter 1 to 2 weeks before I move in. Seriously, I don't see any problem at all. The problem is with your understanding of facts I guess.
funny le, this thing by MAS.
http://www.mas.gov.sg/News-and-Publications/Press-Releases/2014/MAS-Broadens-Exemption-from-TSDR-Threshold.aspx
1 Financial institutions will be required to obtain documentary evidence to verify that the OTP was granted prior to 29 June 2013 and that the borrower occupies the property.
bank staff goes to your unit to check?
also
http://www.ica.gov.sg/page.aspx?pageid=141
one credit card paper statement send to address A.
second credit card paper statement send to address B.
third credit card paper statement send to address C.
now have internet banking, can just checked online the 3 credit card bills, no need paper statement to be send to the correct address.
as and when necessary, can even bring 12 months worth of credit card statements to change IC's residential address as and when necessary.
if memory serves me right, the expert in moving house should be MCMLXVII, change 8 houses in 2 years. does MCM change his NRIC address each time shift house?
on a side note, i find ICA a bit idiotic.
"Under the National Registration Act, an Identity Card (IC) holder is required to report his/her change of residential address within 28 days."
BUT the supporting documents all requre minimum last 3 months :doh:.
thomastansb
11-02-14, 22:41
Change your billing address 2 weeks to 1 month earlier. It is just a matter of whether you want to do it or not. I mean, no one moves in immediately - new or resale. There will be some renovation works for at least 2 weeks to a month at bare minimum? Even if you move in immediately the moment you get your keys, you can request thru ICA and the letter will be posted within a week. No issue at all.
yes indeed.
in fact I had this problem once.
I went to neighbourhood police post to update my address on my IC.
they needed a letter, PUB or bank statement etc that bore my name and the address I wanted to update.
LPPL... cos within 28 days ... I did not receive any bills within that month ..
yes indeed.
in fact I had this problem once.
I went to neighbourhood police post to update my address on my IC.
they needed a letter, PUB or bank statement etc that bore my name and the address I wanted to update.
LPPL... cos within 28 days ... I did not receive any bills within that month ..
just call one of your banks and ask them to send a reprint of the latest bank or creditcard statement, to your new desired address. then use this statement to change your IC address.
Who say can cash out? Don't think so and too early to guess
You never do, you never know.
Don't think you can bypass la.. If caught.. penalties not worth it.
Do you know why you don't see police all the time?
Penalties is use to prevent people from committing crime, it doesn't mean nobody will commit crime if there are penalties, it mean less crime.
princess_morbucks
12-02-14, 07:18
http://www.businesstimes.com.sg/premium/top-stories/tdsr-tweak-lifeline-stretched-owners-analysts-20140212
Property cooling measures to stay, reversal unlikely until 2015
[SINGAPORE] This week's tweak in the total debt servicing ratio (TDSR) framework is targeted at a small group of stressed households that are struggling to get mortgage refinancing, analysts said in reports yesterday.
They were referring to the move on Monday by the Monetary Authority of Singapore (MAS) to exempt owner-occupiers from the TDSR cap of 60 per cent - specifically those looking to refinance the homes they bought before TDSR took effect last June 29.
The cap mandates that a borrower's monthly instalments for all debt-servicing - including mortgage payments - must not cross 60 per cent of his gross monthly income.
Analysts commented that the revision to the rule, designed to prevent people from over-extending themselves, may suggest that the group of "fringe households" - those with a debt-servicing ratio (DSR) of 40-60 per cent - may be larger than earlier anticipated.
However, they say that in light of the small numbers affected, the tweak hardly foreshadows a rollback of property cooling measures. Instead, they expect the measures to stay, with some predicting a reversal only next year.
The exemption also applies to investment property loans, though the borrowers must go through with refinancing by June 30, 2017, and commit to a debt-reduction plan at the point of refinancing.
Last year, the MAS said that 5-10 per cent of borrowers here risk being over-leveraged - defined as having a DSR of more than 60 per cent - and that this proportion could rise to between 10 and 15 per cent if mortgage rates edge up three percentage points.
HSBC analyst Pratik Ray said in a report: "Refinance holds will be problematic if the TDSR framework is applied - and an increase in interest rates or loan margins would increase their repayment burden, resulting in possible forced sales."
Citi analyst Adrian Chua said in a note that stretched borrowers have been held to ransom by lenders in the post-TDSR period.
Credit Suisse analysts Yvonne Voon and Anand Swaminathan, concurring, wrote in a report: "Post-TDSR, banks raised their spreads, taking the view that the borrower would have no choice but to stay with the current bank", given that refinancing could mean a breach of TDSR.
Credit Suisse estimates that 40 per cent of property-owners qualify for the TDSR exemption, which took effect immediately on Monday. However, under 20 per cent of them are actually hit, because, given the low interest rates in the last three years, most of them would have already refinanced their loans.
Mortgage rates typically have a lower spread to the Singapore interbank offered rate (Sibor) in the first two or three years, but jump from the fourth year, noted Citi economist Kit Wei Zheng in a report. This has prompted borrowers to undertake refinancing in the third year to enjoy "teaser" rates again.
He questioned whether there was a larger proportion of borrowers deep in debt than earlier envisioned. The MAS had said this year that one in five borrowers (20 per cent) has a DSR of 40-60 per cent.
Mr Kit believes the proportion to be higher; as much as 25-30 per cent of existing borrowers may already have a DSR of more than 40 per cent at the current low interest rates, he said.
"Even if household balance sheet data suggests more cash than debt on aggregate, the new exemption may hint at a skewed distribution of debt."
As a whole, analysts predict that regulators would create a cushion for a "soft-deleveraging". Since short-term interest rates are still low, any "meaningful policy reversal" would come only late next year, HSBC said.
Looking at the impact on banks, Credit Suisse analysts said that the TDSR tweak should boost refinancing volumes - which has historically made up a third of the new-loan market - but may also hit the banks' margins.
Still, DMG & Partners Securities said in a report that these exemptions are unlikely to stem the decline in new property transactions.
Recent bank-lending data has signalled weakness in the housing loan market. The net gain in value of all Sing-dollar denominated housing loans was 9.5 per cent in December last year, compared to a year ago, according to preliminary estimates by the MAS. This is poorer than the 15.9 per cent year-on-year growth at the end of 2012.
DMG & Partners remains "neutral" on the banking sector. Shares of DBS closed flat yesterday at $16.38; UOB was up 0.2 per cent at $19.87, and OCBC gained 0.3 per cent to end at $9.40.
Credit Suisse likes developers with more overseas and less residential exposure, such as CapitaLand and CapitaMalls Asia (CMA). Shares of CapitaLand rose 1.4 per cent to $2.88, and CMA gained 0.3 per cent to $1.745.
Hi all...I will report the above creative method to MAS and MND. Thanks for the effort and "advices".
Hi all...I will report the above creative method to MAS and MND. Thanks for the effort and "advices".
haha, yowetan, do you think as clever as our ministers, they cannot think of that if they want?
it all depends whether they want to close their eyes or open they eyes.
haha, yowetan, do you think as clever as our ministers, they cannot think of that if they want?
it all depends whether they want to close their eyes or open they eyes.
Hi..I be the mouthpiece to initiate this feedback; it is unfair to people like me and allowing the millionaries in this forum to get richer each day.
Hi all...I will report the above creative method to MAS and MND. Thanks for the effort and "advices".
Normally when I do something I look at the ROI, it will make your life better. If you can't win them join them.
We have this end of contract interview and everyone will complain of all the things they found bad. One day, there was this smart guy came back from the interview and I ask him what did he complain, guess what he say.
"You must be stupid to complain, what is the ROI, they improve the system and what do I get.":scared-4:
Funny meh? I think you are the funny one. You should read carefully again.
Change of address within 28 days. Bills within the last 3 months (not 3 months of bills).
If I were you, I will change my address 1 month before I move in. OR, go ICA website and request for a change of address letter 1 to 2 weeks before I move in. Seriously, I don't see any problem at all. The problem is with your understanding of facts I guess.
you are right. i stand corrected. :o
SINGAPORE: The head of the Monetary Authority of Singapore on Saturday (May 24) said the property cooling measures in place over the past few years were introduced in a “highly unusual situation”, and are unlikely to stay in place when more normal conditions return.
The moves, which MAS Managing Director Ravi Menon described as “macroprudential measures”, have largely succeeded in keeping prices stable and moderating risk-taking.
Speaking at the Asian Monetary Policy Forum on Saturday, Mr Menon said: “Asian economies have deployed macroprudential policies to deal with financial imbalances, to a greater extent than other economies. So far, the results have not been bad. They have largely tempered the credit cycle and the pace of asset price increases, while generally maintaining price and output stability.”
With the possibility of a property bubble building, and with the need to prevent the financial instability witnessed in the global financial crisis of 2008-9, the onus was on financial policy-makers to apply specific measures to this sector - “targeting the cracks” where specific vulnerabilities are concentrated, he said.
“Financial vulnerabilities are not evenly spread across the economy. They tend to be concentrated in specific sectors and segments, such as in real estate. So, even when monetary policy has configured overall liquidity and risk-taking settings appropriately, specific pockets of financial market vulnerabilities – such as a property bubble - could remain,” said Mr Menon, who also chairs the Financial Stability Board Steering Committee.
To address these vulnerabilities, some absolute prudential limits had to be sent for buyers, sellers and banks, he said, citing the recent limits imposted on property loans: A 35-year loan tenure cap; total debt-service ratio of 60 per cent; tiered loan-to-value ratios for first and subsequent properties; and 35 per cent cap on banks’ property-related exposures.
Another item in Singapore’s “macroprudential toolkit”: Stamp duties for both buyers (ranging from 3 to 18 per cent) and sellers (4 to 16 per cent).
'A HIGHLY UNUSUAL SITUATION'
Ultimately, Mr Menon stressed that the measures are interim moves fuelled by unique circumstances, and are unlikely to stay in place once the global and local economy stabilise.
“We should also bear in mind that the current situation is highly unusual. We must not fall into the trap of believing that the innovative policy measures being taken now in response to these unusual conditions represent the basis for a new paradigm in the future,” he said.
“I suspect that when the dust has settled and more normal conditions return, monetary policy regimes will not look drastically different from pre-Crisis days.”
They should have cooling measures for commercial properties (including industrial, office, retail, etc)!
Up to now, these have been creating havoc in terms of jacking of rentals and high inflation (costs passed down to consumers)! :(
SINGAPORE: The head of the Monetary Authority of Singapore on Saturday (May 24) said the property cooling measures in place over the past few years were introduced in a “highly unusual situation”, and are unlikely to stay in place when more normal conditions return.
The moves, which MAS Managing Director Ravi Menon described as “macroprudential measures”, have largely succeeded in keeping prices stable and moderating risk-taking.
Speaking at the Asian Monetary Policy Forum on Saturday, Mr Menon said: “Asian economies have deployed macroprudential policies to deal with financial imbalances, to a greater extent than other economies. So far, the results have not been bad. They have largely tempered the credit cycle and the pace of asset price increases, while generally maintaining price and output stability.”
With the possibility of a property bubble building, and with the need to prevent the financial instability witnessed in the global financial crisis of 2008-9, the onus was on financial policy-makers to apply specific measures to this sector - “targeting the cracks” where specific vulnerabilities are concentrated, he said.
“Financial vulnerabilities are not evenly spread across the economy. They tend to be concentrated in specific sectors and segments, such as in real estate. So, even when monetary policy has configured overall liquidity and risk-taking settings appropriately, specific pockets of financial market vulnerabilities – such as a property bubble - could remain,” said Mr Menon, who also chairs the Financial Stability Board Steering Committee.
To address these vulnerabilities, some absolute prudential limits had to be sent for buyers, sellers and banks, he said, citing the recent limits imposted on property loans: A 35-year loan tenure cap; total debt-service ratio of 60 per cent; tiered loan-to-value ratios for first and subsequent properties; and 35 per cent cap on banks’ property-related exposures.
Another item in Singapore’s “macroprudential toolkit”: Stamp duties for both buyers (ranging from 3 to 18 per cent) and sellers (4 to 16 per cent).
'A HIGHLY UNUSUAL SITUATION'
Ultimately, Mr Menon stressed that the measures are interim moves fuelled by unique circumstances, and are unlikely to stay in place once the global and local economy stabilise.
“We should also bear in mind that the current situation is highly unusual. We must not fall into the trap of believing that the innovative policy measures being taken now in response to these unusual conditions represent the basis for a new paradigm in the future,” he said.
“I suspect that when the dust has settled and more normal conditions return, monetary policy regimes will not look drastically different from pre-Crisis days.”
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