Response to "Why Is Cash-Back Okay for Housing Loans"

Dear Sir,

 I refer to "Why is cash-back okay for housing loans?" (Business Times, 17 December 2004). 

2   Under MAS' Notices on Housing Loans, banks and other financial institutions are required to compute their housing loan quantums so that the borrower would have to make a cash downpayment of at least 10% for private property purchases and 2% (to be revised to 4% from 1 January 2005) for HDB flat purchases. 

3   MAS does not allow cash back and other schemes that have the effect of assisting the borrower to meet the minimum cash downpayment.

Yours sincerely,

Christina Tan
Deputy Director (Communications)

Last Modified on 26/11/2016