Dear Sir,

I refer to "Cash-backs may be undermining HDB's objective" (Today, 20 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)