[ad_1]
SINGAPORE: Singapore will tighten the maximum loan limit that homebuyers can take from the Housing and Development Board (HDB) from Tuesday (Aug 20) in a bid to cool the city-state’s public housing resale market.
The HDB and the Ministry of National Development (MND) made the announcement in a joint press conference late on Monday, providing details of the increased CPF housing grant, which will see eligible first-time homebuyers receive up to S$120,000.
To cool the resale market, the loan-to-value (LTV) limit for HDB loans will be lowered to 75% from 80%, reducing the maximum amount that homebuyers can borrow from HDB.
“This brings the LTV limit for HDB loans in line with loans extended by financial institutions at 75 per cent,” the Ministry of National Development and HDB said.
This is from In December 2021, the loan-to-value ratio for HDB loans was reduced from 90% to 85%.
This is Further reduction to 80% September 2022.
Authorities said first-time buyers, especially those on lower incomes, would be less affected by lower loan-to-value caps because they would receive large housing subsidies.
These include the Enhanced CPF Housing Grant, which helps first-time applicants buy new or resale properties. Speech at the National Day Rally On Sunday, the grant will Increase to help low-income families.
Strengthening Provident Fund Housing Subsidy
Currently, eligible first-time homebuying households can receive a maximum of S$80,000 in Enhanced CPF Housing Grants.
This will increase by S$40,000, to a maximum of S$120,000.
[ad_2]
Source link
