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POSB HDB Housing Loan package pegged to CPF Rates

Written by Patricia Hung on .

POSB is offering HDB flat buyers housing loan interest rate that is pegged to CPF Ordinary Account Rate. It is currently the only bank offering home loan package with interest rate cap for as long as 10 years.

How does it work?

Under the POSB package, borrowers will pay housing loan interest rate at 1.38% above the 3 month SIBOR for the first 10 years and thereafter at 1.48% above 3 month SIBOR. For the first 10 years, POSB has set a cap on the interest rate at CPF Ordinary Account Rate of 2.5%, which means borrowers will not be paying more than 2.5% in interest even if SIBOR goes up.

Is it Getting Tougher to Secure a Housing Loan?

Written by Patricia Hung on .

The latest measures by MAS could be seen as ways to control consumer spending on big ticket items, like properties and cars. The Jan 2013 property cooling measures reduces the loan limits substantially for second and more properties purchases. And last week measure is to cap the car loan limit at up to 60%, down from 100% previously, whilst the loan tenor is halved to 5 years. MAS has limited purchase of properties and cars to those who have the ability to pay for the upfront payment and at the same time reduce the risks of over borrowing.

Business Times Property 2013: Housing Loan Tips by on 28 Feb 2013

Written by Patricia Hung on .

BUYING a property in Singapore could well be considered the most “expensive” of purchases in the lifetime of most Singaporeans, especially with today’s high property prices. Whether the property is for one’s own use or for investment, it is a financial commitment that one has to maintain as long as the housing loan is not fully repaid or the property is not sold.

The latest property cooling measures introduced by the Monetary Authority of Singapore (MAS) in January are timely in reducing the increasing investment and speculative demand in the property market spurred by the extremely low interest rate environment.