Desmond Lee: HDB loan limits in new property cooling measures are to encourage prudent borrowing and dampen higher-end market demand

Desmond Lee: HDB loan limits in new property cooling measures are to encourage prudent borrowing and dampen higher-end market demandThe Housing and Development Board is tightening its loan limits as part of a new property cooling measure, according to a joint media release from HDB and the Ministry of National Development on Monday, Aug 19.

He explained that while this change will affect a small percentage of buyers who currently borrow more than 75 per cent of their flat’s value, “Mr Lee noted that this would not impact most HDB housing loan takers, as nearly nine in ten home buyers borrow at LTV ratios of 75 per cent or less. The remaining 10 per cent are borrowing from HDB at ratios 75 per cent to 80 per cent of their flat’s value.

The market is also experiencing “some tightness” in the supply of resale flats, with fewer flats reaching their minimum occupation period this year. The Enhanced Central Provident Fund Housing Grant will now provide up to S$120,000 for families and S$60,000 for singles, up from S$80,000 and S$40,000, respectively.HDB resident says bad smell from 5 chickens his neighbour keeps made his daughter refuse to come home from her grandmother's placeThis is a significant increase from what we provided previously and will help first-time home buyers afford their first home.

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