Penrose Condo at Sims Drive District 14 by Hong Leong & CDL

Penrose

THE PINNACLE OF LUXURY LIVING

Housing Loan Info

Residential Home Loan Regulations (MAS)

The Monetary Authority Of Singapore (MAS) has stipulated guidelines on how much loan one qualifies and this is usually stated in terms of Loan-to-Value (LTV). This is the amount one can borrow to finance the property and is expressed as LTV ratio. For e.g. a LTV ratio of 75% means one can borrow up to 75% of the property value or price, whichever is lower. The remaining 20% can be paid via a combination of cash or CPF and remaining 5% must be paid in cash only.

The number of years needed to pay off the housing loan (loan tenure) will also affect the LTV ratio. If the loan teniure extends beyond age 65, the LTV ratio will be reduced, thus the amount one can loan from the bank is also reduced.

The number of existing housing loans one has will also affect the LTV ratio. A second home loan will see the LTV ratio reduced from 75% to 45% and the third home loan will have the LTV ratio reduced further to 25%.

Call us for an in-depth financial discussion and planning.

Visit MAS – Rules For New Housing Loans for more information.

 1st Home Loan2nd Home Loan3rd Home Loan
Loan Tenure Up to 30 years31 to 35 yearsUp to 30 years31 to 35 yearsUp to 30 years31 to 35 years
AgeAge used to calculate loan tenure, will be based on income-weighted
Up to 65Up to 70-75Up to 75Up to 65Up to 70-75Up to 75Up to 65Up to 70-75Up to 75
Maximum LTV Limit75%55%55%45%25%25%25%25%25%
Minimum Cash Downpayment5%10%10%25%25%25%25%25%25%
Guarantors / Co-BorrowersAll co-borrowers must be mortgagors. Guarantors must be co-borrowers if the latter did not pass the TDSR criteria.
Mortgage Servicing RatioN.A.
Total Debt Servicing Ratio0.6
Stress Test Interest Rate0.035
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