How would new cooling measures affect you?

A fresh wave of cooling measures hit the property market in September— less than a year after the previous round kicked in last December. We break down what they would mean for your property journey.

1. Tightened loan-to-value (LTV) limit

The reduction of the loan-to-value (LTV) limit for HDB housing loans from 85% to 80% would deter overborrowing for the property purchase.

2. 15-month waiting period

Private property owners would now be able to buy a HDB resale flat only 15 months after the sale of their private residence. Homeowners aged 55 and above who are buying a resale flat with four or fewer rooms, are exempt from the temporary measure.

3. Increased medium-term interest rate floor

An interest rate floor of 3% for the computation of the eligible HDB loan amount has been introduced, alongside the increase in the interest rate floor from 3.5% to 4% for bank loans.The tightening of the maximum loan quantum would be integral to assessing whether the borrower would be able to repay the loan.

Want to find out how these cooling measures would apply to your particular situation? Get in touch with us at Wonder Homes!