Uncertainty over impact of loan regulations

By Romesh Navaratnarajah: It is still unclear whether the new home loan regulations from the Monetary Authority of Singapore (MAS) will affect mortgage lending in the country, which grew 10 percent year-to-date, said Piyush Gupta, Chief Executive of DBS.

Nevertheless, total mortgage lending at DBS, Singapore's largest home loans bank, grew by more than eight percent year-on-year. Year-to-date, home loans rose by seven percent to S$44.1 billion, reported The Business Times.

Moreover, the bank's total loan book rose nine percent year-to-date, driven by property and corporate loans, while housing loans contributed 25 percent of total loan growth, Gupta said.

He also noted that the last two macro-prudential measures had slowed mortgage growth for two to three months, but it increased after that.

Meanwhile, the latest measures which slashed the loan-to-value (LTV) ratio significantly, could result in more borrowers pulling out due to higher monthly instalments. For borrowers with no outstanding mortgages, the LTV is now 60 percent; while for borrowers with outstanding loans, the LTV was brought down from 60 to 40 percent.

Preliminary figures from MAS show that loans granted by local banks came in at S$472.3 billion at the end of September, slower than the 2.3 percent growth in August. The biggest consumer loan category, housing and bridging loans, increased 1.2 percent month-on-month and 14.5 percent year-on-year.  Related Stories: Aussie mortgage growth slides to new low

Hurricane Sandy prompts mortgage relief

UK lending scheme pushes up mortgage approvals

More from PropertyGuru:
Aussie mortgage growth slides to new low
Hurricane Sandy prompts mortgage relief
UK lending scheme pushes up mortgage approvals
Fixed-rate mortgages more appealing

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3795-0.0021-0.16%
    USDSGD=X
    1.5377-0.0009-0.06%
    EURSGD=X
    2.0210+0.0003+0.02%
    GBPSGD=X
    80.3820-0.0609-0.08%
    SGDJPY=X
    5.6320+0.0084+0.15%
    SGDHKD=X
    2.9783+0.0011+0.04%
    SGDMYR=X
    9,882.9248+15.7412+0.16%
    SGDIDR=X
    4.7654+0.0022+0.05%
    SGDCNY=X
    0.9927+0.0003+0.03%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,213.40-9.30-0.76%
    GCQ16.CMX
    16.06-0.28-1.73%
    SIN16.CMX
    79.41-2.71-3.31%
    ^XAU
    2.100.00+0.05%
    HGN16.CMX
    49.49+0.01+0.02%
    CLN16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.39+0.04
    ^FVX
    1.85+0.03
    ^TNX
    2.65+0.02
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.28-0.03-8.20%
    N21.SI
    0.76+0.02+3.40%
    G13.SI
    0.143+0.005+3.62%
    5DM.SI
    0.79+0.05+6.76%
    5HJ.SI
    3.90-0.03-0.76%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.29+0.04+16.00%
    5VI.SI
    0.275+0.030+12.24%
    BAZ.SI
    0.375+0.040+11.94%
    F03.SI
    0.505+0.050+10.99%
    BJE.SI
    1.30+0.12+10.64%
    BDV.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.19-0.06-24.00%
    580.SI
    0.14-0.02-11.39%
    5WJ.SI
    0.28-0.03-8.20%
    N21.SI
    0.10-0.01-7.41%
    AWO.SI
    0.335-0.025-6.94%
    BFU.SI