January

Implementation of countercyclical capital buffer (CCyB) framework

Implemented the CCyB in MAS’ macroprudential policy framework with effect from 1 January 2016. The CCyB was set at zero percent.

September

Revisions to the TDSR framework

Disapplied the TDSR framework to borrowers refinancing their owner-occupied housing loan, regardless of when the residential property was bought. The refinancing of all investment property loans would be subject to the TDSR threshold, except if they can commit to a debt reduction plan to repay at least 3% of their outstanding property loan over a period of no more than three years, and they meet the lender’s credit assessment.

 

January

Lowered LTV limits and raised minimum cash down payment for housing

• LTV limits for new housing loans to borrowers who are individuals with one outstanding housing loan and applying for another housing loan were lowered to
  (i) 50 percent if the loan tenure does not exceed 30 years and the loan period does not extend beyond the borrower's age of 65 years and;
  (ii) 30 percent if the loan tenure exceeds 30 years or the loan period does not extends beyond the borrower's age of 65 years.

• LTV limits for new housing loans to borrowers who are individuals with two or more outstanding housing loans and applying for another housing loan were lowered to
  (i) 40 percent if the loan tenure does not exceed 30 years and the loan period does not extend beyond the borrower’s age of 65 years; and
  (ii) 20 percent if the loan tenure exceeds 30 years or the loan period extends beyond the borrower’s age of 65 years.
• The LTV limit for housing loans to non-individuals was lowered to 20 percent, regardless of whether the borrower has any outstanding housing loan.
• Raised the minimum cash down payment for individuals applying for a second or subsequent housing loan from 10 to 25 percent.

Introduction of Mortgage Servicing Ratio (MSR) for public housing loans granted by FIs

The MSR was capped at 30 percent of a borrower’s gross monthly income.

Raised ABSD rates 

ABSD rates were raised between five and seven percentage points across the board. Imposed ABSD on SPRs purchasing their first residential property and on Singapore citizens purchasing their second residential property. 

June

Introduction of Total Debt Servicing Ratio (TDSR) framework 

The TDSR framework comprised the standardisation of the methodology for assessing the debt servicing ability of borrowers applying for residential property loans. FIs are required to compute the percentage of total monthly debt obligations to gross monthly income, on a consistent basis and based on a headline threshold of 60 percent. 

August

Revised Mortgage Loan Terms for public housing

The maximum tenure of new housing loans and re-financing facilities granted by FIs for the purchase of HDB flats was reduced from 35 years to 30 years. New loans with tenures exceeding 25 years and up to 30 years will be subject to tighter LTV limits.

Lowered LTV limits for public housing

• LTV limits for new housing loans granted for the purchase of public housing to borrowers who are individuals with no outstanding housing loan were lowered to 60 percent if the loan tenure exceeds 25 years or the loan period extends beyond the borrower’s age of 65 years.
• LTV limits for new housing loans granted for the purchase of public housing to borrowers who are individuals with one outstanding housing loan and applying for another housing loan were lowered to
  
     (i)  50 percent if the loan tenure does not exceed 25 years and the loan period does not extend beyond the borrower’s age of 65 years; and
     (ii) 30 percent if the loan tenure exceeds 25 years or the loan period extends beyond the borrower’s age of 65 years.
• LTV limits for new housing loans granted for the purchase of public housing to borrowers who are individuals with two or more outstanding housing loans and applying for another housing loan were lowered to
  
     (i) 40 percent if the loan tenure does not exceed 25 years and the loan period does not extend beyond the borrower’s age of 65 years; and
     (ii) 20 percent if the loan tenure exceeds 25 years or the loan period extends beyond the borrower’s age of 65 years

December

Introduced MSR for Executive Condominiums (ECs)

The MSR for housing loans granted by financial institutions for EC units bought directly from property developers is capped at 30 percent of a borrower’s gross monthly income.

 

October

Introduced Maximum Loan Tenure for housing loans from financial institutions

The new loan tenure rules imposed a limit of 35 years on the tenure of housing loans granted by financial institutions for the purchase of any residential property.

Lowered Housing LTV limits

• LTV limits for new housing loans to borrowers who are individuals, if
  (i) the tenure exceeds 30 years; or
  (ii) the loan period extends beyond the retirement age of 65 years, were lowered to
  (iii) 40 percent for a borrower with one or more outstanding residential property loans; and
  (iv) 60 percent for a borrower with no outstanding residential property loan.
  
• The LTV limit for housing loans to non-individual was lowered from 50 to 40 percent.

 

January

Lowered Housing LTV limits

• For property buyers who are individuals with one or more outstanding housing loans: LTV limit for housing loans granted by FIs was lowered from 70 to 60 percent.
• For property buyers who are not individuals: LTV limit was lowered from 70 to 50 percent for housing loans granted by FIs.

Increased holding period for imposition of SSD

Holding period for imposition of SSD was increased from three to four years.

Increased SSD rate

SSD rates were raised to 16, 12, 8 and 4 percent for residential properties bought on or after January 14. 2011, and are sold in the in 1st, 2nd, 3rd and 4th year of purchase respectively.

December

Imposition of Additional Buyer's Stamp Duty (ABSD)

ABSD was imposed on the following categories of private residential property purchases:

• 10 percent for foreigners and non-individuals (corporate entities) buying any residential property;
• 3 percent for Singapore Permanent Residents (SPRs) owning one and buying a second and subsequent residential property; and
• 3 percent for Singapore Citizens (SC) owning two and buying a third and subsequent residential property.

February

Lowered Housing LTV limit

The LTV limit applicable to housing loans granted by financial institutions was lowered from 90 to 80 percent. 

SSD was re-introduced

SSD was imposed on all residential properties and residential lands that are bought on or after February 20, 2010 and sold within one year from the date of purchase. The SSD was levied at 1 percent for the first $180,000 of the consideration, 2 percent for the next $180,000, and 3 percent for the balance.

August

Lowered LTV limit and raised minimum cash down payment

For property buyers with one or more outstanding housing loans: LTV limit was lowered from 80 to 70 percent for housing loans granted by financial institutions and the minimum cash down payment for housing was raised from 5 to 10 percent.

Increased holding period for imposition of SSD

For residential properties bought on or after August 30, 2010, the holding period for the imposition of SSD on residential properties sold was increased from one to three years. The SSD levied on residential properties was revised as follows:

• Sold within the first year of purchase, i.e. the property is held for 1 year or less from its purchase date – the full SSD rate (1 percent for the first $180,000 of the consideration, 2 percent for the next $180,000, and 3 percent for the balance) will be imposed.
• Sold within the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
• Sold within the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.

September

Disallowed Interest-only housing loans (IOL) and Interest Absorption Scheme (IAS) loans

These are loans in which the developer absorbed interest payments on behalf of the borrower for a period of time.

 

July

Increased LTV limit and decreased minimum cash down payment for housing

The LTV limit applicable to housing loans granted by FIs was raised from 80 to 90 percent, and the minimum cash down payment was decreased from 10 to 5 percent.

 

July

Cap on banks’ property exposures

Property-related exposure of a bank capped at 35% of total eligible assets.

October

Removal of deemed income tax on gains from sale of property within 3 years of purchase

The Government removed deemed income tax on gains from the sale of property within 3 years.

Foreigners allowed to have SGD loans

The restrictions that foreigners who were not PRs and non-Singapore companies were not allowed to obtain housing loans in Singapore dollars were lifted.

 

November

Suspension of SSD

The SSD was suspended to improve the liquidity of transactions in the market.

 

May

Introduction of Housing Loan-to-Value (LTV) limit for Financial Institutions (FIs)

Housing loan quantum not to exceed 80 percent of purchase price or valuation, whichever is lower.

Foreigners disallowed to have SGD loans

Disallowed the granting of Singapore dollar loans to non-Singapore Permanent Resident (SPR) foreigners and non-Singapore companies for the purchase of residential properties.

Introduction of deemed income tax on gains from sale of property

Deemed income tax on gains from the sale of property within 3 years of purchase was introduced to discourage speculation in the residential property market.

Introduction of Seller’s Stamp Duty (SSD)

The SSD was imposed on residential properties sold within three years of purchase as follows:

• Sold within the first year of purchase, that is, the property is held for 1 year or less from its purchase date – the full SSD rate (1 percent for the first S$180,000 of the consideration, 2 percent for the next S$180,000, and 3 percent for the balance) will be imposed.
• Sold within the second year of purchase, that is, the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
• Sold within the third year of purchase, that is, the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.

Bring forward stamp duty payment date

Payment of stamp duty was brought forward to the time of agreement to purchase a property. Previously, a buyer who purchased an uncompleted property need not pay stamp duty until the title was transferred to him. This allowed property speculators who bought and sold properties quickly to pay no stamp duty.