# Joint MAS-MND-HDB Press release: Measures to promote sustainable conditions in the property market by ensuring prudent borrowing and moderating demand - **Source:** Ministry of National Development - **Published:** 2022-09-29T15:30:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/joint-mas-mnd-hdb-press-release-measures-to-promote-sustainable-conditions-in-the-property-market-by-ensuring-prudent-borrowing-and-moderating-demand - **Topics:** HDB & Public Housing, Government & Policy, Transactions & Deals ## Featured rationale The tighter financing and wait-out period could moderate resale demand and price momentum while encouraging buyers to reduce borrowing amid higher interest rates. ## AI summary From 30 September 2022, HDB’s loan LTV fell from 85% to 80%, while private-property owners faced a 15-month wait before buying non-subsidised resale flats. ## Original article 1. Market interest rates have risen significantly. They are likely to increase further in future, which will affect borrowing costs for home purchases. To ensure prudent borrowing and avoid future difficulties in servicing home loans, the Government will tighten the maximum loan quantum limits for housing loans. a. First, we will assume higher interest rates when assessing borrowers’ repayment ability via the following two measures: i. For property loans granted by private financial institutions, MAS will raise by 0.5%-point the medium-term interest rate floor used to compute the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR). This will apply to loans for the purchase of properties where the Option to Purchase (OTP) is granted on or after 30 September 2022, or where there is no OTP, the date of the Sale and Purchase Agreement is on or after 30 September 2022. The actual interest rates charged for mortgages will continue to be determined by the private financial institutions. ii. For housing loans granted by HDB, HDB will introduce an interest rate floor of 3% for computing the eligible loan amount. The interest rate floor will apply to fresh applications for an HDB Loan Eligibility (HLE) letter received on or after 30 September 2022, 00:00 hours. There will be no impact to existing HLE applications received by HDB before this time. This will not affect the actual HDB concessionary interest rate, which will remain unchanged at 2.6% p.a.. b. Second, we will lower the Loan-to-Value (LTV) limit for HDB housing loans from 85% to 80%. The lower LTV limit will apply to new flat applications for sales exercises launched and complete resale applications which are received by HDB on or after 30 September 2022. 2. To moderate demand in the HDB resale market, we will impose a wait-out period of 15 months for private residential property owners (PPOs) and ex-PPOs[1] to buy a non-subsidised HDB resale flat. The wait-out period will not apply to seniors aged 55 and above who are moving from their private property to a 4-room or smaller resale flat. This new measure will take effect from 30 September 2022. It is a temporary measure which will be reviewed in future depending on overall market conditions and housing demand. 3. More details are set out below. Measures to Ensure Prudent Borrowing Amid Rising Interest Rates Higher Medium-Term Interest Rate Floor to Compute TDSR and MSR 4. MAS will raise by 0.5%-point the medium-term interest rate floor used by private financial institutions to compute a borrower’s TDSR and MSR. This revision reflects higher interest rates expected over the medium term, compared to the period of exceptionally low rates from 2013 to 2021. The new medium-term interest rates are: Type of loan Type of loan Medium-term interest rate Medium-term interest rate Residential property purchase loans and mortgage equity withdrawal loans Residential property purchase loans and mortgage equity withdrawal loans The higher of a 4% per annum (p.a.) floor (up from 3.5% p.a.) or the thereafter interest rate*. The higher of a 4% per annum (p.a.) floor (up from 3.5% p.a.) or the thereafter interest rate*. Non-residential property purchase loans and mortgage equity withdrawal loans Non-residential property purchase loans and mortgage equity withdrawal loans The higher of a 5% p.a. floor (up from 4.5% p.a.)or the thereafter interest rate. The higher of a 5% p.a. floor (up from 4.5% p.a.)or the thereafter interest rate. *The thereafter interest rate is the highest possible interest rate applicable during the tenure of a property loan, excluding introductory or promotional rates. 5. Mortgage interest rates pegged to the 3-Month Compounded Singapore Overnight Rate Average (SORA) have been rising in the past months. They are expected to rise further in 2023 along with US interest rates, before settling at a higher level compared to the lows during the period 2013 to 2021. 6. The revised medium-term rate floors ensure that households borrow prudently for their property purchases in a higher interest rate environment. This is necessary as property loans are long-term commitments and are often the households’ largest liability. Some borrowers may need to right-size their intended property loans but will be better able to service these loans when interest rates rise. 7. The revised medium-term interest rate floors will apply to loans for the purchase of properties where the Option to Purchase (OTP) is granted on or after 30 September 2022, or where there is no OTP, the date of the Sale and Purchase Agreement is on or after 30 September 2022. It will also apply to new mortgage equity withdrawal loan applications made on or after 30 September 2022. Borrowers refinancing owner-occupied property loans will not be affected by this change, while those refinancing other types of property loans will be subject to the prevailing medium-term interest rate that applied when they first took up their loans. Interest Rate Floor to Compute Eligible Loan Amount from HDB 8. In tandem with the increase in the medium-term interest rate floor in the TDSR and MSR framework, HDB will introduce an interest rate floor of 3% p.a. to compute a borrower’s eligible housing loan amount[2]. This means that the interest rate used to compute the eligible loan amount for HDB’s concessionary housing loan will be the higher of 3% p.a. or 0.1%-point above the prevailing CPF Ordinary Account (OA) interest rate. HDB’s use of the interest rate floor to compute the housing loan amount encourages flat buyers to borrow prudently as purchasing a flat is a long-term financial commitment. 9. There is no change to the actual interest rate charged for housing loans provided by HDB. The HDB concessionary interest rate is reviewed quarterly, and will continue to be pegged at 0.1%-point above the prevailing CPF OA interest rate. It will remain at 2.6% p.a. from 1 October to 31 December 2022. 10. The interest rate floor to compute the eligible loan amount will take effect as follows: Transaction Type Transaction Type Effective Date Effective Date Purchase of flats from HDB in Build-To-Order and Sale of Balance Flats exercises Purchase of flats from HDB in Build-To-Order and Sale of Balance Flats exercises Application for an HLE letter received; and Sales launch date on or after 30 Sep 2022, 00:00hr Application for an HLE letter received; and Sales launch date on or after 30 Sep 2022, 00:00hr Purchase of resale flats on the open market and open booking flats from HDB Purchase of resale flats on the open market and open booking flats from HDB HLE letter application received on or after 30 Sep 2022, 00:00hr HLE letter application received on or after 30 Sep 2022, 00:00hr Taking over of ownership of existing flat Taking over of ownership of existing flat HLE letter application received on or after 30 Sep 2022, 00:00hr HLE letter application received on or after 30 Sep 2022, 00:00hr 11. The LTV limit for HDB housing loans will be lowered by 5%-points from 85% to 80%. The revised LTV limit will apply to new flat applications for sales exercises launched and complete resale applications[3] which are received by HDB on or after 30 September 2022. The revised LTV limit does not apply to loans granted by private financial institutions, for which the LTV limit remains at 75%. 12. This is not expected to affect first-timer and lower-income flat buyers significantly, as they may receive significant housing grants of up to $80,000 when buying a subsidised flat directly from HDB, or up to $160,000 when buying a resale flat. They can also tap on their CPF savings to pay for the flat purchase, thereby reducing the loan amount they may need to take. Measures to Moderate Demand and Ensure that HDB Resale Flats Remain Affordable 13. Since the Government implemented a broad package of measures in December 2021, the HDB Resale Price Index has increased by more than 5% as at end-2Q 2022, reflecting a broad-based increase in public housing demand. Given the clear upward momentum in HDB resale prices, MND and HDB will introduce a wait-out period of 15 months for private residential property owners (PPOs) and ex-PPOs to buy a non-subsidised HDB resale flat as a temporary measure to moderate demand and ensure that resale flats remain affordable for flat buyers, especially for first-timers. 14. PPOs and ex-PPOs are currently allowed to buy a non-subsidised HDB resale flat on the open market, with the requirement that they dispose of their private properties within six months of the HDB flat purchase. They will now be required to serve a wait-out period of 15 months after the disposal of their private properties before they are eligible to buy a non-subsidised resale flat. This is a temporary measure to moderate demand for resale flats, which we will review depending on overall demand and market changes. The wait-out period for PPOs who are first-timers and wish to apply for the CPF Housing Grant and Enhanced CPF Housing Grant for their resale flat purchase, remains unchanged at 30 months. 15. We recognise that some seniors may wish to move from their private residential property to an HDB flat, to strengthen their retirement adequacy. To support them, the 15-month wait-out period will not apply to seniors aged 55 and above (and their spouses) who are moving from their private property to a 4-room or smaller resale flat. Senior PPOs/ex-PPOs can continue to buy a 2-room Flexi flat on short lease (if they are aged 55 and above) and Community Care Apartment (if they are aged 65 and above) from HDB. In addition, PPOs/ex-PPOs, regardless of age, with extenuating circumstances, e.g. financial difficulties, may approach HDB for assistance, and we will assess their situation on a case-by-case basis. 16. The Government remains committed to keep public housing inclusive, affordable and accessible to Singaporeans. We will continue to monitor the property market and adjust our policies to ensure that they remain relevant. 17. We urge households to exercise prudence before taking up any new loans, and be sure of their debt-servicing ability before making long-term financial commitments. Issued by: Housing & Development Board, Ministry of National Development and Monetary Authority of Singapore [3] A complete application is one where HDB has received both sellers’ and buyers’ portions of the resale application. [2] The interest rate floor of 3% p.a. applies to: flat buyers who are taking an HDB housing loan at the concessionary interest rate; and whereby commercial interest rate is charged, e.g. flat buyers who are taking a second HDB housing loan and buying an HDB flat before disposing of their existing one. The interest rate will be converted to the concessionary rate after the flat buyer has disposed of the existing flat and used the CPF refund and 50% of the cash proceeds received to reduce the second HDB housing loan amount. [1] Ex-PPOs refer to those who had disposed of a private property prior to submitting an application to buy a resale flat. ## Chinese translation > Translation model: grok_cli ### 金融管理局—国家发展部—建屋发展局联合新闻稿：通过确保审慎借贷及缓和需求，促进房地产市场可持续状况的措施 1. 市场利率已显著上升，未来很可能进一步上调，这将影响购房借贷成本。为确保审慎借贷并避免日后出现偿还房贷困难，政府将收紧住房贷款的最高贷款额限制。 a. 首先，在评估借款人还款能力时，我们将假设更高利率，具体通过以下两项措施： i. 对于私人金融机构发放的房地产贷款，金融管理局（MAS）将把用于计算总偿债率（TDSR）和按揭偿债率（MSR）的中期利率下限上调0.5个百分点。 此项规定适用于在2022年9月30日或之后获授购房期权（OTP）的房产贷款；如无购房期权，则适用于买卖协议日期为2022年9月30日或之后的贷款。 按揭的实际利率仍由私人金融机构决定。 ii. 对于建屋发展局（HDB）发放的住房贷款，建屋发展局将引入3%的利率下限，用于计算可贷金额。 该利率下限适用于在2022年9月30日00:00时或之后收到的新组屋贷款资格（HLE）信函申请。 在此时间之前建屋发展局已收到的现有HLE申请不受影响。 此举不会影响实际的建屋发展局优惠利率，该利率仍维持在每年2.6%不变。 b. 其次，我们将把建屋发展局住房贷款的贷款与估值比率（LTV）上限从85%下调至80%。较低的LTV上限适用于在2022年9月30日或之后推出的销售活动的新组屋申请，以及建屋发展局在该日或之后收到的完整转售申请。 2. 为缓和组屋转售市场需求，我们将对私人住宅业主（PPO）及前私人住宅业主（ex-PPO）[1]购买非补贴组屋转售单位实施15个月的等待期。年满55岁及以上、从私人住宅迁至四房式或更小转售组屋的乐龄人士，不适用该等待期。此项新措施自2022年9月30日起生效。这是一项临时措施，未来将视整体市场状况与住房需求进行检讨。 3. 更多详情载列如下。 在利率上升环境下确保审慎借贷的措施 提高用于计算TDSR与MSR的中期利率下限 4. 金融管理局将把私人金融机构用于计算借款人TDSR与MSR的中期利率下限上调0.5个百分点。此项调整反映了与2013年至2021年异常低利率时期相比，中期利率预期上升。新的中期利率如下： 贷款类型 贷款类型 中期利率 中期利率 住宅房产购买贷款及房屋净值套现贷款 住宅房产购买贷款及房屋净值套现贷款 每年4%的下限（由每年3.5%上调）或其后利率*两者中的较高者。 每年4%的下限（由每年3.5%上调）或其后利率*两者中的较高者。 非住宅房产购买贷款及房屋净值套现贷款 非住宅房产购买贷款及房屋净值套现贷款 每年5%的下限（由每年4.5%上调）或其后利率两者中的较高者。 每年5%的下限（由每年4.5%上调）或其后利率两者中的较高者。 *其后利率指房产贷款存续期内可能适用的最高利率，不含入门或促销利率。 5. 与3个月复利新加坡隔夜平均利率（SORA）挂钩的按揭利率过去数月持续上升。预计其将随美国利率在2023年进一步上升，并最终稳定在高于2013年至2021年低位的水平。 6. 经修订的中期利率下限可确保家庭在较高利率环境下审慎借入购房贷款。这是必要的，因为房产贷款属于长期承诺，往往也是家庭最大的负债。部分借款人可能需要调整拟借入的贷款规模，但在利率上升时将更有能力偿还这些贷款。 7. 经修订的中期利率下限适用于在2022年9月30日或之后获授购房期权（OTP）的房产购买贷款；如无购房期权，则适用于买卖协议日期为2022年9月30日或之后的贷款。其亦适用于在2022年9月30日或之后提出的新房屋净值套现贷款申请。再融资自住房产贷款的借款人不受此项变动影响；再融资其他类型房产贷款者，则适用其首次取得贷款时的现行中期利率。 用于计算建屋发展局可贷金额的利率下限 8. 配合TDSR与MSR框架中中期利率下限的上调，建屋发展局将引入每年3%的利率下限，用于计算借款人可贷住房贷款金额[2]。这意味着，计算建屋发展局优惠住房贷款可贷金额所采用的利率，将为每年3%或比现行公积金普通账户（OA）利率高出0.1个百分点两者中的较高者。建屋发展局采用利率下限计算住房贷款金额，旨在鼓励购屋者审慎借贷，因为购买组屋是一项长期财务承诺。 9. 建屋发展局所提供住房贷款的实际利率不变。建屋发展局优惠利率每季检讨，并将继续挂钩于比现行公积金普通账户利率高出0.1个百分点。自2022年10月1日至12月31日，该利率仍为每年2.6%。 10. 用于计算可贷金额的利率下限生效安排如下： 交易类型 交易类型 生效日期 生效日期 在预购组屋（Build-To-Order）及剩余组屋发售（Sale of Balance Flats）活动中向建屋发展局购买组屋 在预购组屋（Build-To-Order）及剩余组屋发售（Sale of Balance Flats）活动中向建屋发展局购买组屋 收到HLE信函申请；以及 销售推出日期 为2022年9月30日00:00时或之后 收到HLE信函申请；以及 销售推出日期 为2022年9月30日00:00时或之后 在公开市场购买转售组屋及向建屋发展局公开认购组屋 在公开市场购买转售组屋及向建屋发展局公开认购组屋 HLE信函申请于2022年9月30日00:00时或之后收到 HLE信函申请于2022年9月30日00:00时或之后收到 接手现有组屋业权 接手现有组屋业权 HLE信函申请于2022年9月30日00:00时或之后收到 HLE信函申请于2022年9月30日00:00时或之后收到 11. 建屋发展局住房贷款的LTV上限将下调5个百分点，由85%降至80%。经修订的LTV上限适用于在2022年9月30日或之后推出的销售活动的新组屋申请，以及建屋发展局在该日或之后收到的完整转售申请[3]。经修订的LTV上限不适用于私人金融机构发放的贷款，其LTV上限仍为75%。 12. 预计此举不会对首次购屋者及较低收入购屋者造成显著影响，因为他们在直接向建屋发展局购买补贴组屋时可获最高达80,000新元的住房津贴，或在购买转售组屋时可获最高达160,000新元的住房津贴。他们亦可动用公积金储蓄支付购房款项，从而减少可能需要借入的贷款金额。 缓和需求并确保组屋转售单位继续可负担的措施 13. 自政府于2021年12月实施一揽子广泛措施以来，截至2022年第二季末，组屋转售价格指数已上涨逾5%，反映公共住房需求全面上升。鉴于组屋转售价格明显上扬动能，国家发展部与建屋发展局将作为临时措施，对私人住宅业主（PPO）及前私人住宅业主（ex-PPO）购买非补贴组屋转售单位实施15个月等待期，以缓和需求，并确保转售组屋对购屋者——尤其是首次购屋者——继续可负担。 14. 目前，私人住宅业主及前私人住宅业主获准在公开市场购买非补贴组屋转售单位，惟须在购买组屋后六个月内脱售其私人房产。今后，他们须在脱售私人房产后履行15个月等待期，才有资格购买非补贴转售组屋。这是一项用于缓和转售组屋需求的临时措施，我们将视整体需求与市场变化进行检讨。首次购屋的私人住宅业主若欲为其转售组屋购买申请公积金购屋津贴及额外公积金购屋津贴，其等待期仍维持不变，为30个月。 15. 我们理解部分乐龄人士可能希望从私人住宅迁至组屋，以加强退休保障。为支持他们，年满55岁及以上的乐龄人士（及其配偶）从私人房产迁至四房式或更小转售组屋时，不适用15个月等待期。乐龄私人住宅业主/前私人住宅业主可继续向建屋发展局购买短契两年式灵活组屋（若年满55岁及以上）及社区护理公寓（若年满65岁及以上）。此外，无论年龄，私人住宅业主/前私人住宅业主如有特殊情况，例如财务困难，可向建屋发展局寻求协助，我们将按个案评估其情况。 16. 政府仍致力于让公共住房对新加坡人保持包容、可负担且可获得。我们将继续密切关注房地产市场，并调整政策以确保其持续切合实际。 17. 我们敦促家庭在承造任何新贷款前审慎行事，并在作出长期财务承诺前，确保自身具备偿债能力。 发布机构：建屋发展局、国家发展部及新加坡金融管理局 [3] 完整申请指建屋发展局已同时收到卖方与买方的转售申请部分。 [2] 每年3%的利率下限适用于： 以优惠利率承造建屋发展局住房贷款的购屋者；以及 按商业利率计息的情况，例如承造第二笔建屋发展局住房贷款、并在脱售现有组屋前购买建屋发展局组屋的购屋者。购屋者脱售现有组屋，并将所获公积金退款及现金收益的50%用于减少第二笔建屋发展局住房贷款金额后，利率将转换为优惠利率。 [1] 前私人住宅业主（Ex-PPO）指在提交转售组屋购买申请前已脱售私人房产者。