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

--

Did you know that you can get stories like this on the Yahoo mail app?
Download it here.
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
    1.3477-0.0001-0.01%
    USDSGD=X
    1.4701-0.0002-0.01%
    EURSGD=X
    2.0612-0.0002-0.01%
    GBPSGD=X
    92.1345+0.0362+0.04%
    SGDJPY=X
    5.7533+0.0009+0.02%
    SGDHKD=X
    2.7144+0.0003+0.01%
    SGDMYR=X
    9,806.3418+1.0898+0.01%
    SGDIDR=X
    4.6015+0.0005+0.01%
    SGDCNY=X
    1.0301-0.0001-0.01%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,190.50+1.70+0.14%
    GCQ15.CMX
    16.71+0.04+0.25%
    SIN15.CMX
    69.70-0.13-0.19%
    ^XAU
    2.73-0.04-1.34%
    HGN15.CMX
    60.52+2.50+4.31%
    CLQ15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.47-0.04
    ^FVX
    2.10-0.03
    ^TNX
    2.85-0.04
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.795-0.015-1.85%
    N21.SI
    4.13+0.01+0.24%
    Z74.SI
    0.205-0.010-4.65%
    5GB.SI
    0.290.000.00%
    5WA.SI
    0.420.00+1.20%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.45+0.05+12.50%
    AWX.SI
    1.32+0.12+10.00%
    AYO.SI
    0.50+0.04+9.89%
    MN5.SI
    0.119+0.009+8.18%
    540.SI
    0.15+0.01+7.14%
    5MD.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    1.24-0.56-31.11%
    AYC.SI
    0.139-0.041-22.78%
    40R.SI
    0.114-0.019-14.29%
    5UA.SI
    0.34-0.06-13.92%
    AWI.SI
    0.295-0.035-10.61%
    Y06.SI