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