Date: For Parliament Sitting on 11 November 2024

Name and Constituency of Member of Parliament

Mr Christopher de Souza, MP, Holland-Bukit Timah GRC

Question:

To ask the Prime Minister and Minister for Finance whether MAS will introduce regulations relating to the fees and charges that banks and financial institutions charge for the refinancing of property loans.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:

1.         Banks compete to offer attractive property loans to customers.  Customers can choose to refinance their outstanding loans with their existing bank or with a new bank. They may compare the terms, pricing and fees charged on these loans. MAS requires financial institutions to provide prospective borrowers with a fact sheet that clearly discloses fees and charges, including fees incurred should the borrower seek to refinance the loan within a lock-in period.

2.         MAS is not considering directly regulating fees and charges. The existing disclosure requirements enable competition in the market so borrowers have the necessary information to enable them to make informed decisions when choosing a property loan and when considering whether to refinance the loan.

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