Singapore Tightens Properly Loans

Singaporeans will find it hard to apply for property loans now that the tightening of loan rules is in full effect. The Minister of National Development said that this tightening is a measure to guarantee a steady property market.

Singaporeans should expect this to be permanent in time. The Central Bank initiated two frameworks- TDSR (Total Debt Servicing Ratio) and LTV (Loan to Value) which strongly limits housing loans. This action will fortify credit practices and promote financial forethought amongst borrowers.


Aside from strengthening the property market, the government is eyeing to create a HDB community that will promote multi generation families to live closer. New houses are built in Tampines, Woodlands, Yishun and Sembawang that will encourage children to be near their parents or grandparents.

But how will you know you are ready to go on your separate way? Buying a house is difficult especially with the tightening security measure. You should be ready if ever you choose to avail of the housing loan. You should:

  • Look for a suitable community. You should canvass the community and see if it is what you like. This is crucial since you will spend most of your time there. You should determine if the community suits you well.
  • Make sure you can afford it. Of course, this is important. Do not enter into something that you cannot handle. Do not let pressure sink in. If you cannot afford it, stay in an apartment or rent a room. Do not push it because you will be the one who will suffer later.
  • If you consider private loans, compare interest rates. If you want to get bank loans, you should compare interest rates and payment schemes among banking institutions. It is important that you are oriented about the guidelines so you will know what to expect.

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