New Cooling Measures

[狮子王]

Haha...heng ar...I got 2 fully paid property and 1 under mortgage.

No impact on me.

You good lor, win liao lor. I am not over leveraged, but very borderline ! But I still worry lor not for the current CM, but for something else which I hope they missed.

Woahahahhahahahahhahah

[amk]

So according to your formula, the previous example is :

600+0 / 10 = 60 ? How can 60 years old borrow for 60 years? Pls enlighten

Alamak this number is the derived "income weighted age", I.e. such joint applicants are treated as age 60.

[狮子王]

Alamak this number is the derived "income weighted age", I.e. such joint applicants are treated as age 60.

Sigh yo.....you should go MAS lah... Now I understand liao LOL

[狮子王]

You guys wanna know what is the next thing I scared of. That is, the policy I hope they missed out? Hehhehehhhehhhhh see you guys smart or not.

[狮子王]

You guys wanna know what is the next thing I scared of. That is, the policy I hope they missed out? Hehhehehhhehhhhh see you guys smart or not.

Hint: this one har, the angmo government or USA very good at one lor...hehehehhehehehhehehehehhe not QE hor!

[狮子王]

Hint: this one har, the angmo government or USA very good at one lor...hehehehhehehehhehehehehhe not QE hor!

Hehehehehehe

[狮子王]

Hehehehehehe

Those know dun say here hor.heheheheheheheh not interest rates hor....

[狮子王]

Those know dun say here hor.heheheheheheheh not interest rates hor....

Hint : This one has the same initials as our previous Prime Minister hor....heheheheheh

[star]

This new cooling measure will make it harder for people to buy back after selling. Less people will be selling.

[狮子王]

This new cooling measure will make it harder for people to buy back after selling. Less people will be selling.

Hey ! U r right ! Why didn't I see that. Good thinking

[proud owner]

Hint : This one has the same initials as our previous Prime Minister hor....heheheheheh

I know in US income from home ownership , be in capital gain, rental income etc ..are not taxed as much as profit and dividends from stocks ...

resulting in a lot of investments in real property ... and partly contributed to subprime


is this something you are thinking of ?

[ecimbew]

LAI LIAO LOR

I was still telling my dad earlier that J gateway fully sold and there most probably be a measure soon.


BUT....... SO SOON!???

Because some R said Khaw will lim Kopi with Sham while reading condosingapore.

[princess_morbucks]

Lion king, I can't sleep without knowing the answer to your riddle.
Is it General Consumption Tax?- whatever that is.

or maybe Goods Consumption Tax?

[Autumnwinds]

Genuine question, do people really take up to 60% installment??

I'd consider that over stretching. And I remember that even 50% of total gross income is considered risky, and banks are not as lenient before in granting loans.

[ecimbew]

Hint : This one has the same initials as our previous Prime Minister hor....heheheheheh

But it's pro business sg govt

[狮子王]

http://en.wikipedia.org/wiki/Capital..._United_States

[economist]

To know the real impact of this measure, one must know the existing bank policies and usual practices when they give out housing loans.
If banks have already been adhering to similarly strict policies or practices, say they use medium rate of 3% (slightly less than this time round's 3.5%) to calculate TDSR, then the impact would be minimal.
If banks have been too lax before, then there will be some impact.

We need forumers who just took loans in recent years and who have been able to understand how banks assess his TDSR and his eligibility, to contribute here, in order to gauge the impact. This is how a forum can really help.

[princess_morbucks]

http://en.wikipedia.org/wiki/Capital..._United_States

That's capital gain tax !

[ecimbew]

You gave yourself credit. Thanks

FINALLY.

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 FI 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; and
in the case of joint borrowers, that FIs use the income-weighted average age of borrowers7 when applying the rules on loan tenure.

Would you believe I actually spent like close to an hour some months back talking to some MAS officer on the phone, explaining to them the average age problem.

The stupid officer still keep trying to defend it and they say the banks will use the "proper" age and they will monitor it.

I was like, duh.... all these measures are in place because the banks cannot be trusted to be prudent. Given clinching a business, they will try to sell the loan by using the youngest age of the borrowers.

I told them specifically that they have to use the income weighted average age so it is CLEAR CUT. why make it so ambiguous???

[狮子王]

That's capital gain tax !

It is targeted at specific income brackets if u read wiki carefully. Very scary hor!

[狮子王]

To know the real impact of this measure, one must know the existing bank policies and usual practices when they give out housing loans.
If banks have already been adhering to similarly strict policies or practices, say they use medium rate of 3% (slightly less than this time round's 3.5%) to calculate TDSR, then the impact would be minimal.
If banks have been too lax before, then there will be some impact.

We need forumers who just took loans in recent years and who have been able to understand how banks assess his TDSR and his eligibility, to contribute here, in order to gauge the impact. This is how a forum can really help.

I second that. Good call

[狮子王]

Because some R said Khaw will lim Kopi with Sham while reading condosingapore.

Lol....u must be joking.. Funny.

[economist]

Currently Active Users: 2355 (157 members and 2198 guests)
Most users ever online was 13,691, 12th January 2013 at 01:01 AM.


Judging from the above number, this CM is not as strong.

[princess_morbucks]

Currently Active Users: 2355 (157 members and 2198 guests)
Most users ever online was 13,691, 12th January 2013 at 01:01 AM.


Judging from the above number, this CM is not as strong.

People still on vacation?
Or system not detecting properly?

[ecimbew]

Impact is limited to Jurong East only?

[狮子王]

But it's pro business sg govt

That I agree. That is why I think the chances of it happening is low, but if happens it can impact me the most due to inheritance

[economist]

My personal feel is that it doesn't differ much from the current practice. Why? this is because MAS has been talking with banks since a few months ago, and MAS, as a regulator, wouldn't want to kill banks' business, MAS couldn't even afford the new loans to show year-on-year declines.

I'm not sure about the current practice as banks never question me when I took loans, however, my guess is that they didn't have a standardized framework to assess TDSR for all loans using 3.5%, what banks did were perhaps only looking at individual mortgage loans, applying a rate like 2.5% or 3%, they probably applied some haircuts to rental too, and banks are no-idiot, while they have been loose in the above, they probably applied a stricter and lower ratio for this individual mortgage service ratio, probably in the region of 40% to 50%. What MAS did was really to standardize it, and probably when MAS helped setup this new TDSR framework, they already took a survey of existing loan applicants, and found that some 95% of applicants satisfy the new TDSR framework, and only then they can launch the new framework.

I second that. Good call

Quote:
Originally Posted by economist
To know the real impact of this measure, one must know the existing bank policies and usual practices when they give out housing loans.
If banks have already been adhering to similarly strict policies or practices, say they use medium rate of 3% (slightly less than this time round's 3.5%) to calculate TDSR, then the impact would be minimal.
If banks have been too lax before, then there will be some impact.

We need forumers who just took loans in recent years and who have been able to understand how banks assess his TDSR and his eligibility, to contribute here, in order to gauge the impact. This is how a forum can really help.

[DKSG]

This CM will cool the market a bit but the real demand will still be there.

Hmmm ... Not sure if policy makers did see our posts here? Remember some weeks back we were talking abt what is happening the showflats with youngsters buying condos like a Prada bag (parents pay)?

Think maybe policy makers saw such posts??!!

Maybe from now on should refrain from posting real time happenings in the showflats!!

Anyway... 60% is a joke la ... I can't reveal what is the joke ... U all have to figure it out here...

No wonder my Mentor writes in codes... Now I understand ... To avoid detection by some policy makers...

DKSG

[狮子王]

My personal feel is that it doesn't differ much from the current practice. Why? this is because MAS has been talking with banks since a few months ago, and MAS, as a regulator, wouldn't want to kill banks' business, MAS couldn't even afford the new loans to show year-on-year declines.

I'm not sure about the current practice as banks never question me when I took loans, however, my guess is that they didn't have a standardized framework to assess TDSR for all loans using 3.5%, what banks did were perhaps only looking at individual mortgage loans, applying a rate like 2.5% or 3%, they probably applied some haircuts to rental too, and banks are no-idiot, while they have been loose in the above, they probably applied a stricter and lower ratio for this individual mortgage service ratio, probably in the region of 40% to 50%. What MAS did was really to standardize it, and probably when MAS helped setup this new TDSR framework, they already took a survey of existing loan applicants, and found that some 95% of applicants satisfy the new TDSR framework, and only then they can launch the new framework.



Quote:
Originally Posted by economist
To know the real impact of this measure, one must know the existing bank policies and usual practices when they give out housing loans.
If banks have already been adhering to similarly strict policies or practices, say they use medium rate of 3% (slightly less than this time round's 3.5%) to calculate TDSR, then the impact would be minimal.
If banks have been too lax before, then there will be some impact.

We need forumers who just took loans in recent years and who have been able to understand how banks assess his TDSR and his eligibility, to contribute here, in order to gauge the impact. This is how a forum can really help.

I have to say u r a very good thinker. It is very logical to think of it like you do

[狮子王]

This CM will cool the market a bit but the real demand will still be there.

Hmmm ... Not sure if policy makers did see our posts here? Remember some weeks back we were talking abt what is happening the showflats with youngsters buying condos like a Prada bag (parents pay)?

Think maybe policy makers saw such posts??!!

Maybe from now on should refrain from posting real time happenings in the showflats!!

Anyway............

DKSG

Good brother buay koon like me ARH ? ( cannot sleep after the latest news)