Rules for finance companies when granting residential property loans to individuals and non-individuals.
Rules for New Housing Loans
Rules for financial institutions (FIs) on new housing loans, including maximum limits on loan tenure, loan-to-value ratio, mortgage servicing ratio and total debt servicing ratio.
Property loans can be large, long-term liabilities for most individuals and households. Maximum limits on loan tenures and amounts help to ensure that borrowers don’t overstretch themselves when purchasing property.
The objectives of the housing loan rules are to:
- Encourage financial prudence among borrowers.
- Prevent borrowers from circumventing LTV limits and TDSR thresholds.
- Ensure long-term household economic health.
- Strengthen credit underwriting standards at FIs.
- Ensure long-term stability in the property market.
Housing Loan Rules
Below is a summary of the rules on maximum limits for new housing loans.
In addition, FIs must also: