Monetary Authority of Singapore to Cap Tenure on New Residential Loans

Tharman Shanmugaratnam

The Monetary Authority of Singapore (MAS) is taking measures to alleviate a perceived future price bubble in Singapore residential properties. The monetary authority is restricting the tenure of all new residential property loans to 35 years. Loans that exceed the 30-year tenure will face more stringent loan-to value (LTV) ratios.

In the press release, Mr. Tharman Shanmugaratnam, Chairman of MAS, said, “Monetary conditions worldwide are far from normal. QE3 and low interest rates have made credit easy, but this will eventually change. We are taking this step now to require more prudent lending, and will continue to watch the property market carefully. We will do what it takes to cool the market, and avoid a bubble that will eventually hurt borrowers and destabilise our financial system.”



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