Monetary Authority of Singapore Annual Report 2011/2012
Our Work

Property Market Measures

In January 2011, MAS lowered the loan-to-value (LTV) limits for property purchases as part of the Government’s measures to maintain a stable and sustainable property market. The LTV limit was lowered from 70% to 60% for individual purchasers with one or more outstanding housing loans. The LTV limit for non-individual property purchasers was also lowered to 50%. These targeted measures were in addition to the measures previously introduced in 2010. They were also intended to help moderate market sentiments and encourage greater financial prudence among property purchasers.

In June 2011, MAS proposed that financial institutions provide a residential property loans fact sheet when marketing housing loans to consumers. The fact sheet aims to provide information essential to a consumer’s decision to take up a residential loan, including how loan repayments may change under different interest rate scenarios. After incorporating feedback received, the fact sheet was finalised in November 2011 and implemented in March 2012. In July 2011, MAS also formally imposed regulatory LTV limits on mortgage equity withdrawal loans (MWLs). These are loans that home owners can obtain, based on their equity in a property that they own. The move served to align the rules for MWLs with those imposed on residential property loans.

In December 2011, with market sentiments still strong, MAS was involved in the Government’s effort to introduce an additional buyer’s stamp duty (ABSD). The ABSD aimed to moderate investment demand for private residential property and promote a sustainable property market. The ABSD is imposed over and above the existing buyer’s stamp duty, and the rates are determined by the number of properties owned and whether the purchaser is a foreigner, permanent resident or Singapore citizen.