Housing Authority of Singapore, Ministry of National Development of Singapore and MAS jointly issued a message announcing another wave of property market cooling measures!

An increase of 0.5% in the lower limit of the medium-term interest rate for mortgage loans, with the prime lending rate remaining unchanged at 2.6%.

The medium-term interest rate used to calculate the total debt service ratio will be increased from 3.5% to 4%; the medium-term interest rate for non-residential properties will be increased from 4.5% to 5%.

This measure applies to mortgages with a letter of option obtained on or after September 30 and, in the absence of a letter of option, mortgages with a purchase and sale agreement date on or after today.

Loan-to-valuation ratio reduced to 80%.

Effective immediately, for the first time, a minimum interest rate of 3% is used to calculate the loan amount for homebuyers. Previous applicants are not affected.

The current prime lending rate remains at 2.6%.

Private home owners who sell their private homes must wait 15 months before they can purchase resale HDB flats.

From now on, the LTV ceiling will be lowered to 80% for new and complete applications for resale HDB flats received by the URA.

Loans granted by private financial institutions remain unchanged at 75%.

This change will have little impact on first-time and low-income homebuyers. They can receive up to $80,000 for the purchase of a HDB flat and up to $160,000 for the purchase of a resale flat. They can also make provident fund deposits to reduce their loan amount.

Private homeowners can only purchase a non-subsidized condominium 15 months after the sale of their home.

From now on, private homeowners and former private homeowners have to wait 15 months after selling their private buildings before they can purchase non-subsidized resale HDB flats.

To enhance retirement protection, owners aged 55 and above who move from private housing to smaller resale HDB flats are not subject to this restriction.