Some residential property measures relaxed

SINGAPORE – The Government has relaxed some residential property measures relating to the sellers’ stamp duty (SSD) as well as the total debt servicing ratio framework (TDSR). The new rules take effect from March 11.

Upcoming executive condo launches include Hundred Palms Residences ECYio Chu Kang EC, Inz Residence EC, Choa Chu Kang EC, Anchorvale Lane EC,  while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC and Northwave EC.

However there is no change to the additional buyers’ stamp duty (ABSD) as well as loan-to-valuation (LTV) limits.

The SSD is currently payable by those who sell a residential property within 4 years of purchase, at rates of between 4 per cent and 16 per cent of the property’s value

– The changes will see the SSD holding period cut to three years, down from four.

– The SSD rates will also be lowered by four percentage points for each tier.

– The new SSD rates will range from 4 per cent (for properties sold in the third year) to 12 per cent (for those sold within the first year).

The rates apply to all homes bought on and after March 11.

The current TDSR framework aims to encourage prudent borrowing by households.

Under this frameowork, property loans extended by a bank cannot exceed a TDSR threshold of 60 per cent.

This means that your total loan obligations cannot exceed 60 per cent of your monthly gross income.

However, this 60 per cent threshold will no longer apply to mortgage equity withdrawal loans with loan-to-value ratios of 50 per cent and below. These refer to loans where borrowers in their retirement years will borrow against the value of their properties to obtain more cash. This move is expected to affect only a small group of owners.

MND, MAS and MOF said in a statement this morning that the current set of property measures remain necessary to promote a sustainable residential property market and financial prudence among households.

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