a Sound and Reputable Financial Centre
As part of the
calibrated steps taken by the Government to temper
sentiments and pre-empt a property bubble from forming,
MAS banned financial institutions from offering interest-absorption
and interest-only housing loans in September 2009.
This move was intended to encourage prospective home-buyers
to consider carefully their ability to afford the
properties over the long term and not rush into any
purchase. In February 2010, MAS lowered the loan-to-value
limit for housing loans from 90% to 80%, to encourage
greater financial prudence among property purchasers
and ensure a stable and sustainable property market.