Saturday, January 02, 2016

Singapore SHOULD NOT loosen those "Property Cooling Measures"

A very Happy New Year to everyone! This is my first political post for the New Year 2016.

Right before 2015 ended, REDAS  (Real Estate Developers Association), in anticipating a slow down in the property market for 2016, has openly urged Singapore government to ease off the "property cooling measures" so that property prices may not dip too far.

PAP government has responded that it is not going to ease the cooling measures any sooner but I guess they do not really understand that these so call "cooling measures" which they have put up are actually "anti-speculation" measures.

They do not seem to understand that these measures should be a PERMANENT feature for Singapore instead of a policy option for manipulating the property market.

REDAS represented the developers as a lobby group and obviously, they are lobbying the government when they are going to lose money. But they did not make any noise when speculation was riff and property market booming and overheating with them, the developers making tons of money!

We have to get the fundamentals right when it comes to housing and land policy for Singapore, especially so when Singapore is just a tiny little red dot with limited land resources.

The "Anti-speculation measures" (what they call or misrepresented as "cooling measures") are the right tools to prevent the following:

1) Turning Singapore into ATM for foreign and local speculators. When a country has limited land, it is obvious that there will be a lot of money to be made by speculating on the property market. Foreigners and local filthy rich people with huge amount of funds will buy up properties to stock and expect it to rise in near future so that they could reap off quick profits from such speculation. The side effect is that property prices and rentals will skyrocket and it would become out of reach of locals as such unhealthy inflationary pressure on the property prices are totally unrealistic and out of sync with the salary levels of local normal Singaporeans who just need a roof over their heads.

2) Lopsided funding to the property market will increase risk to the Financial system. This is especially so when the prices of properties were pushed up due to speculation. The Financial system will become extremely vulnerable if too much funds were channeled into the property market. If there is a crash, the problem of negative assets and insolvency may just collapse our whole Financial system.

3) A crowding out of financial resources, due to overheated property market, from productive commercial and industrial activities may be detrimental to the healthy development of the country's economy. When people think that there is quick money to be made by property speculation, they will divert their resources into property speculation instead of investing in productive economic activities.

4) Speculation in property market as in rapid transactions is unhealthy for the Economy as it does not really produce anything substantial except inflationary pressures for the economy. i.e. It is the same four walls of bricks that went up from 300K to 1 million, without any substantial productive additions to the economy.

5) Suppliers or Developers should be prevented from HOARDING properties so to manipulate property prices. Thus the additional stamp duties imposed on developers if they could not sell the properties within 5 years, is justifiable. This will prevent property prices to be "sticky upwards".

We have only a limited land size and the government's priority is to make sure that land is properly distributed so that every Singaporeans could afford a roof over their heads. The government's priority is NOT to make sure property developers or speculators make money. It is definitely NOT the government's responsibility towards foreign "speculators" disguised as "investors".

Property transactions and speculations may be a quick addition to GDP figures but it basically does not produce anything substantial to the economy except inflation via inducement of asset inflation to rise in rentals.

The two main measures of moderation on the overall debt-salary serving ratio and additional stamp duties are good in curbing speculations by keeping out speculators while making sure people do not over stretch themselves in buying a property they could ill afford to.

However, contrary to REDAS expectation, such measures are basically not enough.

Germany is exceptionally strong in industrial engineering basically because they curb property speculations. They impose more drastic rental and property price controls to prevent people from property speculations. It controls the percentage that the rental or property prices could increase annually.

This not only curb speculations but in fact, prevent too much financial resources being drawn into property speculations. Instead, people are more willing to invest in industrial production and engineering.  This is how Germany grows to be the strongest economy in Europe.

In contrast, Japan used to be a industrial giant but due to excessive speculations in its property market, it just collapsed and didn't manage get back into shape after more than a decade.

Singapore should not use property speculation as a means to boost economic GDP figures. It should learn from the Germans instead, to impose more stringent measures to curb property speculations. If the government's priority is to Singaporeans' affordability to a home for their families, then it is only logical to make sure that increase in property prices should not be more than the increase in the salaries of normal Singaporeans:

The valuation of property prices should be indexed to the salary index of Singaporeans. This is especially so for HDB flats.

Goh Meng Seng

67 comments:

Anonymous said...

"Property transactions and speculations may be a quick addition to GDP figures but it basically does not produce anything substantial to the economy except inflation via inducement of asset inflation to rise in rentals."
Goh Meng Seng

But if even casinos, and not one but 2 some more, can add to GDP figures, why not property speculation?

That's why whether in politics or economics, you are not as savvy as PAP, despite being an economics graduate from the prestigious NUS. No wonder you lost so badly in GE 2015.

Admin said...

If you have followed my blog, you would know that I am against the Casino as well. It brings more social ills which PAP government has tried so hard to cover up.

Goh Meng Seng

Anonymous said...

With reference to the current property cooling measures which we understand and respect the thinking behind your decision to implement such measures however we have to wonder as to how much consideration was afforded to the public at large, in particular all of the current and future home owners?

Whilst we concede that the measures have achieved their objective of stemming the increase in property prices and then some, as both property prices and sales have actually been decreasing for some time now which is imposing a burden on various businesses that rely, either directly or indirectly, on a vibrant property market.

Businesses suffering a loss of revenue as a consequence of the property cooling measures and the subsequent slowdown in the property market include banks and other financial institutions, property agencies, conveyancing lawyers, home renovation companies, renovation material manufactures and suppliers. As a result of decreased revenue such businesses have had to reduce their labour force creating unexpected unemployment and a group people with reduced buying power.

Factor in the uncertainty of how much further property prices are likely to fall and we now have an recipe for a significant slowdown in the overall economy.

We believe it is time for the responsible persons to take a long hard look at the current cooling measures with a view to making some amendments to provide some relief to the property market doldrums and the overall economic downturn. Priorities on balance views and opinions should favour the majorities and the country. While the cooling measures achieved its purpose it dominos its ill effects.

Admin said...

First of all, our economy SHOULD NOT be overly dependent on high or inflating property prices. That's the crux of the matter.

The businesses which are dependent on high inflation of property prices have made their millions in the past few years but this has caused us, the common people, great pain.

Any responsible political leader would have reviewed the kind of growth strategy we are having right now.

As much as it was a HAPPY gold mining by these companies which depend on property boom in the past few years, these companies will have to bite the bullet now and go through a process of pain before the property market will stabilize and managed at a relatively balanced growth rate. A small country like Singapore cannot afford to go into a rollercoaster ride with the huge boom and bust of the property sector which will affect the financial stability of the country.

Please read the following article published in Forbes and understand how this unhealthy property speculative boom will put our whole economy in great danger.

http://www.forbes.com/sites/jessecolombo/2014/01/13/why-singapores-economy-is-heading-for-an-iceland-style-meltdown/#2715e4857a0b7f64f47013cc

Anonymous said...

Entertain a clown whether they are PAP or Opposition and we become part of a circus. Larvea Menone and you can jolly well be the clown and we the spectators can decide whether or not we want to agree with the circus performance in the next election. Fair and peace to all.

Jiabin FU said...

Those who encouraged the cooling measures are simply in every ones knowledge that they had sold their property high and are waiting on the side for the price to drop. Companies are relocating out of Singapore. Singapore has no natural resources and every little rules to create jobs is important. There are other ways to cool the market. It need not everything has to solve with money. Government said some candidates during elections gave proposals to help the lower income and they asked where the money is coming from. Stamp duties is one of them. Seller sell low buyer buy high if needed to pay the 7 or 15% stamp duties. The government gain not the seller or buyer. Goh CTong said let the foreigners bring in the money to buy a piece of the sky.He is right that we do not do business with our own people. Real money and growth is outside the family not from one own pocket to another. Job losses effects families and lives. Suicide and crime have shot up and also depression. We do not need a government who thinks they know best and are never wrong. The new housing minster is only repeating what the old say. They cannot come up with anything new. If he did he think that he is proving those who made the rules of cooling measures not look so nice. So even rotate ministers also no use. Buying car also money rules. Outsider said we are rich. The government is rich not the people.

Anonymous said...

The cooling measures accomplished what they set out to do. The country is also escalating to whole new level with their over the top policies- the trade offs that are disastrous!

Jiabin said...

钱简单的经济学 - 值是流通,数量增加。创造就业流传更多的钱

Anonymous said...

Country's formula for property cooling measures( q2+q2-q2{4Xpppp-108t}= ? )

Re-financing/Re-pricing formulae (8X32+a@ 4% 9-7# <0^4'2)9778456XXGGp=to confuse and complicate.

Our formula ( limit all bank borrowings, ain't no money no 2nd 3rd or even 2016 properties)everybody understood. Hee hee hee.

Anonymous said...

Anonymous said...
Country's formula for property cooling measures( q2+q2-q2{4Xpppp-108t}= ? )

Re-financing/Re-pricing formulae (8X32+a@ 4% 9-7# <0^4'2)9778456XXGGp=to confuse and complicate.

Our formula ( limit all bank borrowings, ain't no money no 2nd 3rd or even 2016 properties)everybody understood. Hee hee hee.



Not forgetting TDSR means THE DEATH SENTENCE RULE. What bout those who prefer to play with the banks credit but wants to keep their cash in the fixed deposit for emergency. In doing so they fail the TDSR.
TDSR is for trying to convince and justify their million salary that they doing the their job well. What are the "same feathers" trying to prove? Pleaseeeeeeeee do not insult our intelligence. How many are caught in this dilemma?

Vince said...

I am one of many private owners who are currently unable to refinance their housing loans since the introduction of TDSR. I am now in my fifties and I have previously borrowed funds from a bank so as to keep my savings in reserve in case I lose my job during the current economic downturn.
In the current climate a person my age may find it takes some time to find a new job even if willing to accept a lower salary.
In the past I have been able to look around at different banks for mortgage refinancing and find preferential rates once the initial three years of low interest rates had expired.
Due to TDSR I am not able to do this time around and am now find myself paying 3.25% interest on my mortgage.
What has TDSR to do with cooling measures, it appears to unnecessarily penalise the majority of existing home buyers

Admin said...

The cooling measures do not penalize "majority" of property owners as those who have lived or owned the property for more than 4 years, do not face penalties.

It only penalizes those speculators or people who do not do proper financing planning and need to sell their properties within short period of time.

It also prevent property speculation and speculators who will mess up the efficient and effective allocation of our limited land resources. This is a long term perspective.

Those who have speculated on properties must realize that there is no "SURE WIN" in their deals. If they have to cut loss, they will have to cut loss. These measures do not prevent you from selling your properties, just that it prevents people from speculation.

It could be refined though. For example, it could say that instead of a penalty on all transaction prices within that period, it could come up with a formula to tax on excessive capital gains on the sale of the property based on the number of years it is owned as compared to inflation rate. i.e. if you are making a loss, it will not put on additional tax on your sales. But if you are trying to reap off excessive return on property sales via speculation, then it will only allow a "reasonable' gain on property prices based on either inflation rate or salary index. Anything else beyond that will be taxed heavily.

But whichever method or system we adopt, the purpose should aim at curbing property speculation in Singapore.

Goh Meng Seng

Anonymous said...

Our personal sense is that our PM cared deeply for the people. He only has a cameo role in policy making. We for us supported the cooling measures and like majority detest the speculators. Because of them the genuine home buyers are paying a steep price and for those who are unable to reprice the banks are laughing all the way with homeowners paying high interest rates after the first 3 years. What we condone are some colors showing power, wealth and their success by throwing out and creating a dynamic and stylistic measures to impress and exhibit they are in control. Game over we win. We are their bargaining chips.

Anonymous said...

My parents took a term loan on their property 5 years ago to send me to university overseas as I was unable to get a place here. In the past, they had no problem refinancing the property for better rates with different banks. The interest rate on the mortgage has increased from 1.28% to 3.75% today. Although they are able to afford the higher interest, the extra expense is eating into their savings and making it more difficult to save for retirement. They have tried selling the property but this has proved difficult due to the quantum price of more than $5 million, even after slashing the price by $2 million.

Anonymous said...

Feast and Famine. In the past property speculations were overly rampant. Today properties are facing a drought. All things in moderation should be healthy all around from different sides of the fences. Diversity would allow people to make good choices.

Politicians, please refrain from ridiculing yourselves with your extravagant self opinions ??

Admin said...

It is precisely that the system has allowed unchecked speculations to build up so much so that the system becomes unbalance and extreme speculations caused extreme prices and created increasing risk and danger to the whole financial system and economy.

The so call "cooling measures" were collectively a base weight to prevent excessive swing and speculations to build up. This will only be good for the country.

If you are complaining because you or family are facing cashflow problems, it just shows that you or family have made unnecessary purchase or speculation in the property market without much planning and worse, buying something which is not within your affordability. This is basically speculations in essence.

Goh Meng Seng

Anonymous said...

WTF who are you to tell anybody what to buy and what not to buy or whether got money or no money. YOU PAY ?? Your moni?? You echo just like some men in the PAP who just self praising on their policies !

Admin said...

I don't tell people whether they should buy or not to buy, but please don't complain after you got caught in the situation when you suddenly find that you could ill afford it. Then, you will make noise about "cooling measures" which are perfectly logical for the overall health of the economy.

So, don't complain if you got into trouble because you made a stupid speculative decision, since good advice just fallen on death ears.

Goh Meng Seng

Anonymous said...

Someone in your family sold his HDB we believe for the election, looks like he can afford the elections ?? He too made a wise choice. Besides the person here did not mentioned that there was more than one property. Last time you bought your HDB $24,000. Today we hope its only worth $ 1,000. Than you will also stop complaining about the cooling measures. Before you judged someone make sure your own hands are clean ??

triple headed said...

All those property developers who DID NOT purchase their land before the COOLING MEASURES act and are stuck should combine and consult a lawyer. This will also put pressure that one should NOT reconstruct the technicality of measures that are unfathomable, incomprehensible and unpalatable so as to make their own jobs secure that they are irreplaceable. For those who bought during or after the cooling measures, NO EXCUSE. Just sit back and eat out their fantasy, you knew what you went in !

Shimyl Ahmed said...



NICE

Anonymous said...

No disrespect to those above 85 years who intends to sell their property. Potential buyers should be waived the ABCD so as to be kind society where the possibility of selling is not a hazard in the event that one might want to take their money when they eventually go. Can the state look into the matter?

SENIOR RETIRED CITIZEN said...

Perplexing that no one brought up the sad but true topic, of old large estates

which is more than 36 years with more than 600 units which is just impossible to

journey an enbloc. These estates largely comprise of elderly and retirees and to

top-up to sinking funds are a killer big chunk to these group of people who have

no income, for the repairs on cracks, leaks, lifts so on and so on.$ comes in a

few thousands per quarter in topping up maintenance fees for a minimum 2 years.

Perhaps estates of more than 36 years and have more than 600 units should only need

50% consensus for enbloc. Due to the governments helping themselves by putting

their fingers in every pie, on peoples lives, wont it be a concern to take care

of residents in private estates as well without prompting, instead of only the

80% or so HDB for votes. Tried selling. Viewers were put off by the old and not

technologically advance buildings and surroundings.


WITH YOU, FOR YOU, FOR SINGAPORE??

Anonymous said...

Fret not! The open-ended devise about reverse mortgage who knows could happen. If it didn't it could interpret that the policy did not favour them. No monee to collect.

Anonymous said...

TDSR was introduced so that families would NOT BE OVERSTRETCHED. It proved that some people were trying to act smart but OUTSMART THEMSELVES with the measures.

Bought before cooling measures were introduced.
Mortgage used to be $5,500( $3,500 principle and $1,500 interest)

Due to TDSR not able to refinance after promotion rates expired .
Paying mortgage for the last 2 years ($6,800 monthly. $3,200 principle and $3,600 interest ) Only one owner occupied property.

The GOSPEL CONTRADITION that they are not even ashamed that families are overstretched, with their only the overly- smart are able to engineered such cruel twist.

2+9= 29 said...

"of residents in private estates as well without prompting, instead of only the

80% or so HDB for votes".

Not a Math's Wizard, so please excuse. Only SINGAPOREANS or at least one member can buy direct HDB? Where do the mass voters come from? Private housing consist of PRS and foreigners who cannot vote. Its a no-brainer that the agenda to priorities the majority ? You people better sell and buy HDB even it means waiting for 3 years. Make sure you buy small- small units to act poor-poor to receive handouts.Sori if the wisdom imparted not valuable.
Perky to go about hearing from some crowd [cheng hoo hor, hoe lau lang lui]

Anonymous said...

Response to two articles on Total Debt Servicing Ratio rules - The Business Times, 6 and 11 April 2015






Dear Editor

Mr Yeo Chee Kean and Mr Ong Choon Hwa have suggested that the refinancing of certain property loans could be exempted from the total debt servicing ratio (TDSR) rules (“Allow more flexibility in home loan refinancing”, 6 April 2015 and “Refinancing: Be fair to long-term investors”, 11 April 2015).

There is indeed an exemption for refinancing of properties bought before the introduction of the TDSR rules, i.e. the option to purchase was granted before 29 June 2013. The exemption covers refinancing of housing loans for owner-occupied residential properties. It also applies to loans relating to investment properties for a transition period until 30 June 2017, provided the borrower commits to a debt reduction plan. This is to encourage those who have taken on high leverage on their investment properties to right-size their loans as early as possible.

We thank Mr Yeo and Mr Ong for giving us the opportunity to reiterate the exemptions from TDSR.

Bey Mui Leng (Ms)
Director (Corporate Communications)
Monetary Authority of Singapore

Anonymous said...





COPIED ARTICLE:

HOME owners looking to refinance their properties are finding it increasingly difficult to do so against the backdrop of falling property prices, stringent definitions of what constitutes income and the tedious paperwork involved.

Conservative property valuations also mean that only smaller loan amounts can be refinanced. With rising interest rates, more home owners are opting to switch from floating to fixed rates, or re-price to lower rates before the Sibor (Singapore interbank offered rate) spikes to a painful level.

According to independent mortgage adviser FindaHomeLoan, of the 300 cases it advised in the last six months, about 25, or 8 per cent, of home owners could not refinance because they did not meet either the total debt servicing ratio (TDSR) or the bank's credit assessment criteria, or both.




COPIED ARTICLE:








Banks were coy about revealing numbers, but said the percentage of customers who are unable to refinance is very small.




She adds that refinancing may not work for everyone, as there could be additional fees payable, a new loan package may require commitment for a few years, or the loan tenure may be shortened, resulting in higher monthly repayment instalments.

But FindaHomeLoan founder Sean Lim says that refinancing has become a headache for many since the TDSR framework kicked in, even if the government has given a three-year grace period for mandatory compliance until June 30, 2017.

With the stringent TDSR guidelines, most borrowers are faced with a shortened tenure, which often results in higher monthly mortgage requirements. Those who had funded their property with the help of a guarantor in the past are also now required to remove the guarantor as a mortgagor. Such borrowers would then be subjected to TDSR assessment without the guarantor's income.

There are other issues: loans with tenures based on the younger applicant's age become subjected to income-weighted age computation, which results in a shorter tenure and higher monthly instalments. The inclusion of other purchases such as commercial properties also affects loan limits, especially the stricter 30 per cent mortgage servicing ratio which applies to owners of HDB flats and executive condominiums.

Meanwhile, not every bank has adopted in entirety the list of financial assets suggested by the Monetary Authority of Singapore (MAS).

Some banks do not recognise stocks deposited with the Central Depository, others do not accept stocks held with foreign exchanges, yet others do not accept cash held jointly with a third-party non-mortgagor.



Pay slips issued in the form of hand-written salary vouchers are sometimes frowned upon by banks and may result in rejection of or a 30-per-cent haircut on the income, FindaHomeLoan's Mr Lim says.

Some borrowers may also have retired with no income except for the rentals they collect every month - which have to undergo a 30 per cent haircut, bringing them past the 60 per cent limit, even if their outstanding loans have been paid down steadily over the years.

Tedious document submissions aside, all these stricter income criteria add up to make refinancing a pain for mortgagors, he says.

The tighter loan criteria come on top of another problem: falling valuations, which further affect borrowers' ability to refinance.

Banks do not lend beyond a certain loan-to-value of usually 80 per cent or lower, lest they should be unable to recover the amount in case of foreclosure.




Anonymous said...

ABSD will not be completely revamped. Once they get the taste of money that addiction will be hard to let go. Besides who wants no pay increase or reduction of bonuses. If it is ever taken away be a few percentage points in future could be because they were far more home owners than first time buyers. For votes and pretend that something is done so as the rigidity do not seem so brutal.

Anonymous said...

Some narcissists need to exercise control what they put out to the people. Not every house personal circumstances are the same.😞

Anonymous said...

DICTATORS are allergic to reform, and they are CUNNING SURVIVERS . They will do

whatever it takes to preserve their POWER and WEALTH, no matter how much blood ends

up on their hands. They are MASTER DECIEVERS and TALENTED MANIPULATERS who cannot

be TRUSTED to change. George Ayittey

Gibbldy said...

Cooling measures should stay.

It had been painfully created by small and low caste group in an attempt to self serve their own massive confidence boost.

We circumvent our own loopholes to make our lives breezy.

Who else can come out with such measures maybe other than Steve Jobs or Bill Gates.

Let it be permanent. They collect money through the disguise of their policies to
renovate and upgrading the country to the best infrastructures where the world can admire.

We are blessed money was not stolen illegally from the country created by hidden
paper trail.

In the case we pay a little higher to the property seller minus absd,they have spare money to spend at shops, eating places and companies to boost economy, than our country no money to make it look nice and people will not live in comfort.

Conclusion its better to pay absd , so everyone benefits ,not the families who sell high.




Anonymous said...

Practice what you preached and lead by example. Who owns the land and new HDB? Reduce the price of land and the new BTOs and the rest will automatically follow? Simple logic. Don't put excuses prices are not coming down all because of your own doing.

Anonymous said...

Aw; another unsolicited change in the rules?

{Bought before cooling measures were introduced.
Mortgage used to be $5,500( $3,500 principle and $1,500 interest)

Due to TDSR not able to refinance after promotion rates expired .
Paying mortgage for the last 2 years ($6,800 monthly. $3,200 principle and $3,600 interest ) Only one owner occupied property.}

If they don't priorities the banks earnings, they are exhibiting abnormal traits of behavior.

Banks need to pay corporate and business taxes to who? The more the banks earnings
the higher collections? Phew.

Anonymous said...

The superior men will not understand what is right, instead will abuse their power to do anything to appear big. They hide a multitude of sins and gain satisfaction to prolong others sufferings. They concealed their conniving stand on never being wrong.
We live in an imperfect world, yet some bear the high caliber that they are far too perfect at least only to sell that they are. Crafty Foxes.



Anonymous said...

Suay people blame yourselves la. Don't anger with all your hard luck story. No sympathy here. You can afford to pay the high interest after the promotion rates as the bank would have already factor in to afford the worst case before approved loan.
Banks are in business, they specialize not for default. Olden times if one can afford to put down 50% deposit, they don't even asked for paycheck and even give you 90 years tenure because they know that the property would be sold before end of tenure and they are safe with 50% deposit. Cars also same if you can put 50% deposit. Banks know that you have done your calculations because nobody wants risky business, not the banks not the people, Off cause there will always be some who wants to gamble. Sometimes people have to know that people nowadays are more educated and many hiding Skoolings out there. We are not suppose to be enslaves to them. Those good simple old days. Its best not to bother about their kayu policies because once you get hang of it, they painted it to other colours . Not worth to stress over it. Live and let live. It not a life.

Anonymous said...

Understood ,whispers about never trust iandIns.

Anonymous said...

“Since [narcissists] deep down feel themselves to be faultless, it is inevitable that when they are in conflict with the rules they created will invariably perceive the conflict as the people's fault.”

—M. Scott Peck


Anonymous said...

Time for those "outdated, vintage Truck PC" to go.
New designs, technology, generosity, correct information display, performance & functionality will be greatly welcome to improve lives.
People who can analyze deeply the insight & trends.
Strictly unwelcome is another Mount Vesuvius waiting to happen.
Feelin important? Look at the skin and we can see their color of the heart.

Anonymous said...


(With the stringent TDSR guidelines, most borrowers are faced with a shortened tenure, which often results in higher monthly mortgage requirements. Those who had funded their property with the help of a guarantor in the past are also now required to remove the guarantor as a mortgagor. Such borrowers would then be subjected to TDSR assessment without the guarantor's income.

There are other issues: loans with tenures based on the younger applicant's age become subjected to income-weighted age computation, which results in a shorter tenure and higher monthly instalments. The inclusion of other purchases such as commercial properties also affects loan limits, especially the stricter 30 per cent mortgage servicing ratio which applies to owners of HDB flats and executive condominiums.)

No change, but if your loan is under Sibor you can leave your loan as it is. Sibor still hovers between 1.2 to 1.8% interest. Its the fixed rates that the borrowers are being crucified after 3 years. 4th year onwards can hit 4% depending on the banks.

Farking said...


(With the stringent TDSR guidelines, most borrowers are faced with a shortened tenure, which often results in higher monthly mortgage requirements. Those who had funded their property with the help of a guarantor in the past are also now required to remove the guarantor as a mortgagor. Such borrowers would then be subjected to TDSR assessment without the guarantor's income)

If this is farking true, than the farking MAS need to come out on their farking website to tell the whole farking truth, rather than half the farking truth only about to pay down @ 3% to do away with the farking TDSR. It saves the people the farking time and farking money to go through the 2 farking months of farking round-abouts just for lower farking interest rates to be told the farking the farking loan tenure is cut to farking half. The farking problem now is that there is no Senior Lee to question these farking useless helping themselves yo "buffets". The nation do not have a problem with the farking cooling measures. What has this farking cooling measures relate to the farking repricing and farking refinancing and farking of paying high money of farking ABSD!

Anonymous said...




Arrogant.

Bureaucratic Truth said...

Bureaucracy destroys initiative. There is little that bureaucrats hate more than innovation, especially innovation that produces better results than the old routines. Improvements always make those at the top of the heap look inept. Who enjoys appearing inept?

Bureaucracy is a giant mechanism operated by pygmies.
HONORE DE BALZAC, attributed, The Harper Book of Quotations

Some third person decides your fate: this is the whole essence of bureaucracy.
KOLLONTAI ALEXANDRA, La Oposición Obrera

Bureaucracy is, for its detractors, one of the predicaments of modern life and must be examined as what it is, at best, a functional solution to administrative problems and, at worst, an immediate and living threat to the open society.
ALEXANDER STYHRE, The Innovative Bureaucracy

Bureaucracy gives birth to itself and then expects maternity benefits.
DALE DAUTEN,

The Greatest Quotations of All-Time

Bureaucratic Truth said...

Hated the maze of bureaucracy with a passion, but I've found the best way to deal with it is to smile and act stupid.
KIM HARRISON, Dead Witch Walking

Plato argued that good people do not need laws to tell them to act responsibly, while bad people will always find a way around law. By pretending that procedure will get rid of corruption, we have succeeded only in humiliating honest people and provided a cover of darkness and complexity for the bad people. There is a scandal here, but it's not the result of venal bureaucrats.
PHILIP K. HOWARD, Death of Common Sense

Bureaucracies are inherently antidemocratic. Bureaucrats derive their power from their position in the structure, not from their relation with the people they are supposed to serve. The people are not masters of the bureaucracy, but its clients.
ALAN KEYES, attributed, Public Administration:

The greatest power of bureaucracies is to make the smart act stupid and the good to act evil.
RAUL RAMOS Y SANCHEZ, Pancho Land



The Greatest Quotations of All-Time

Bureaucratic Truth said...

Every revolution evaporates and leaves behind only the slime of a new bureaucracy.” ~ Franz Kafka

“Bureaucracy is the epoxy that greases the wheels of progress.” ~ James Boren

“Bureaucracy — the giant power wielded by pygmies.”
~ Honoré de Balzac

“Bureaucracy, the rule of no one, has become the modern form of despotism.” ~ Mary McCarthy

"To get the attention of a large animal, be it an elephant or a bureaucracy, it helps to know what part of it feels pain. Be very sure, though, that you want its full attention." ~ Kelvin Throop aka R.A.J. Philips



“Bureaucracy is the art of making the possible impossible.” ~ Javier Pascal Salcedo

"Bureaucracy expands to meet the needs of the expanding bureaucracy.” ~ Oscar Wilde.

“If we could ever make red tape nutritional, we could feed the world.” ~ Robert Schaeberle

“You will never understand bureaucracies until you understand that for bureaucrats procedure is everything and outcomes are nothing.” ~ Thomas Sowell

The Greatest Quotations of All-Time

Anonymous said...


Please submit the signed prepayment form (attached). Only documents X X X X and X required from all borrowers if you are making at least a 3% partial prepayment to be exempted from Total Debt Servicing Ratio (TDSR) assessment.



Otherwise, submit the following documents for TDSR assessment for repricing.
(All Borrowers)

OWNER OCCUPIED PROPERTY!!

Anonymous said...

• Repricing will require a full review of your loan, including Total Debt Servicing Ratio,
loan-to-value ratio , loan tenure and a satisfactory credit assessment. Your repricing
application is subject to our approval.

Anonymous said...

If things are not complex, anybody can be hired at a significantly lower cost. They need to justify they are indeed needed and no one else can fill their position or existence. Its kinda psychological thingy for job security purposes since one is already used to that kinda lifestyle.
Why are parents pushing so hard for their children to do well in their studies? Here is only one good example. Without money one cannot refinance. Without money one can't tell the authorities to shove it ,by repaying off the entire loan. Without earning above 12k one cannot buy an exec condo. Can only buy according to your salary. In school one is stream according to results. Buying HBD, you are also stream according to your salary.
The minute you are born you will be put in which class you belong.
To conclude money is the root of evil which was rubber stamped by the country. If one have no money or intelligence its a difficult country to make a move or understand their complex rules and regulations.
These people live only in their own universe. They can never ever relate to the poor or illiterate. That is another reason the poor and illiterate were never considered in any of their programmes or feedback.

Anonymous said...

Dear Editor

Mr Yeo Chee Kean and Mr Ong Choon Hwa have suggested that the refinancing of certain property loans could be exempted from the total debt servicing ratio (TDSR) rules (“Allow more flexibility in home loan refinancing”, 6 April 2015 and “Refinancing: Be fair to long-term investors”, 11 April 2015).

There is indeed an exemption for refinancing of properties bought before the introduction of the TDSR rules, i.e. the option to purchase was granted before 29 June 2013. The exemption covers refinancing of housing loans for owner-occupied residential properties. It also applies to loans relating to investment properties for a transition period until 30 June 2017, provided the borrower commits to a debt reduction plan. This is to encourage those who have taken on high leverage on their investment properties to right-size their loans as early as possible.

We thank Mr Yeo and Mr Ong for giving us the opportunity to reiterate the exemptions from TDSR.

Bey Mui Leng (Ms)
Director (Corporate Communications)
Monetary Authority of Singapore



Please submit the signed prepayment form (attached). Only documents X X X X and X required from all borrowers if you are making at least a 3% partial prepayment to be exempted from Total Debt Servicing Ratio (TDSR) assessment.



Otherwise, submit the following documents for TDSR assessment for repricing.
(All Borrowers)

OWNER OCCUPIED PROPERTY!!



We think you may have a term TERM LOAN and a housing loan in the property. We brought the newspaper cutting from the forum page to the bank for repricing 2 years ago but the reply the bank gave us were different. They told us to do a prepayment of 3% on the total value of the loan. When we showed them the newspaper cutting by
Bey Mui Leng (Ms)thinking that the bank was playing awkward and making things difficult so as they can continue to collect the high interest rates.But alas we were told that was not the instructions they were given on if the borrower has a term loan on the property. We were told to open a current account with the bank to deposit the 3% prepayment for the refinancing. It came to a stage we did not know who to trust -the bank or the MAS.
We did as we were told and now we dread when the next refinancing if we have to do another 3% of another prepayment.







Anonymous said...

Sorry should be repricing not refinancing. It was one year ago not two.





Anonymous said...

At present, due to Income

Weighted Average Age (IWAA), even if your Total Debt Servicing Ratio (TDSR) passes,

your loan tenure will be reduced from A years to A- years.

.Term Loan when you are ready to pay 3% for a partial prepayment. Meanwhile the

charges for your repricing has been reduced to $B to $B-.


Owner Occupied.

Anonymous said...

you may contact us again in future for a review of your repricing Loan when you are ready for a partial prepayment and shorten loan tenure if you do not accept the present offer within 7 days.

Owner occupied . Sent roughly 25 pages of documents.



Anonymous said...

Interest rates were low to help the economy get out of recession. The gov has to raise rates now or there'll be no chance to help the economy during the next recession. Our rates are highly dependent on US rates and they are planning to raise it 2nd half of this year.

The cooling measures are also a cycle. There's a trickle down effect on prices to the rest of local goods and services. There's no one policy that can help everyone without another group being affected. Anyway some cooling measures should be eased.

Anonymous said...

3 Year Lock-in Variable Rate

Year 1: 1.8%

Year 2: 2.28%

Year 3: 2.88%

Thereafter: 3.68%

This is the best we could offer:

3 Year Lock-in Variable Rate

Anonymous said...

Alternatively, you can consider to go for Fixed rate package.

2 Year Lock-in Fixed Rate

Year 1: 2.28% (Fixed)

Year 2: 2.28% (Fixed)

Year 3: 2.65% (Board Rate – 2.45%)

Thereafter: 3.75% (Board Rate – 1.35%)

The application is currently in the midst of review.
After the partial prepayment is deducted the review team will process the repricing and contact you.

Thank you.

Anonymous said...


‘Repricing’……………has there been a greater misnomer. Very recently one of the local broadsheets used half the front page to explain the latest ‘tweaks’ to the home loaning repricing policy. Notwithstanding all the reporting very little, if anything, has changed. It is reasonable for one to conclude there is a considerable difference in the government’s definition of the term ‘repricing’ and that of the local banks.
Following the latest ‘tweaks’ we applied for repricing of our home loan only to be met with the previous condition of having to pay a lump sum of 3% of the outstanding loan, TDSR blar,blar and blar. It should be assumed that home owners apply for home loan repricing only to avail themselves of some additional available cash each month to help keep up with the continually increasing cost of living, as such the imposition of blar,blar and blar outstanding home loan defeats the objective. In conclusion the phrase ‘Catch 22’ comes to mind!!!


Anonymous said...

😖😀 In order to qualify for a Loan, you first need to prove to the bank that you don't need it.😖😀

All the Best!😖😀
😖😀

Anonymous said...

The Garment and Ministirs are not in touch with things that are today. Their policies are like back 40 years ago. Today we use flat screen not the bulky that takes up wasted space and resources. Humans are more worldly widely travelled and educated. https://t.co/uCsNjYhifN.

Anonymous said...

It was more of a question why should the people pay them ABSD?



HOW TO SURVIVE A HEART ATTACK WHEN ALONE?
Since many people are alone when they suffer a heart attack without help, the person whose heart is beating improperly and who begins to feel faint, has only about 10 seconds left before losing consciousness.
如何在独自一人时拯救心脏病发作?许多人都是在独处时遭受心脏发作,无人可施于援救,而不规律的心脏跳动和开始感到头晕的状况让患者只剩离开失去意识约10秒而已。

However, these victims can help themselves by coughing repeatedly and very vigorously. A deep breath should be taken before each cough, and the cough must be deep and prolonged, as when producing sputum from deep inside the chest.

A breath and a cough must be repeated about every two seconds without let-up until help arrives, or until the heart is felt to be beating normally again.

其实,这些受害者可以通过反复大力的咳嗽自救。每次咳嗽前必须深深呼吸,并且每一次的咳嗽一定要深和长,就仿如要从胸膛深处咳出痰的情况一样。

受害者必须约每两秒重复深呼吸和咳嗽,一刻都不可松懈,直到救援人员到达,或者直到感觉心脏跳动恢复正常。

Deep breaths get oxygen into the lungs and coughing movements squeeze the heart and keep the blood circulating. The squeezing pressure on the heart also helps it regain normal rhythm. In this way, heart attack victims can get to a hospital.

深呼吸可以让氧气进入肺部,咳嗽挤压心脏并让血液保持循环。挤压的压力也帮助心脏恢复正常的节奏。这样,心脏发作受害者才能有机会抵达医院



Only the Nazees would agree that we should pay them ABSD! Grreeeeeeed and lack of empathy are masters trick up their sleeves.

Anonymous said...

*It was more of a question why should the people pay them ABSD?*



In Lion City NO ONE IS ABOVE THE LAW according to them. But the ones ABOVE THE LAW can dictate you pay, there is no way out. If you don't want to pay ABSD just don't buy lor,as simple as that. Stop your cow peh cow bu. Its damn irritating.

Anonymous said...

Owner occupied with term loan on the property repricing- One month notice period is required for this 3% paydown. The one month notice will be from the date we receive the signed partial prepayment form.

The review team would also require the HDB printout (stating that you do not have any loans with HDB) from all borrowers.

Anonymous said...

May we add to the super-duper dramas of the antagonizing repricing!

The remaining tenure has to be reduced to XX years before we can proceed with the paydown of $XXK and repricing application based on regulatory guidelines.

As for the quantum of financing to meet 80%, it is approved.

Kindly ensure there are sufficient funds in the account that is tagged to the loan.

Anonymous said...

To our supremacists,

Please do not lift the property *cooling* measures. I am still waiting for the prices to fall further. When the prices has fallen by 60% I will be in the purchasing games. After I have bought for more than ten years would you have a sincere heart to remove the measures as I might need to sell at a higher price due to the dollar depreciation by then, the accumulation of the interests that I have paid for the ten years, the property taxes, the stamp duty and mony spent on maintenance.

Thank You. AMEN

Anonymous said...

It’s quite possible that the people tasked with formulating the ever changing, and never ending, property cooling measures actually already own multiple properties and do not suffer the anxiety and hopelessness of trying to apply for new housing loans or refinancing / repricing existing ones, the legislators are in effect immune to this situation and as such should re-visit the existing measures whilst at the same time giving a lot more consideration to the everyday Singaporean who do suffer the mentioned anxieties and sense of hopelessness.

Anonymous said...

“A leader’s role is to raise people’s aspirations for what they can become and to release their energies so they will try to get there.”
— David R. Gergen

“A leader is not an administrator who loves to run others, but someone who carries water for his people so that they can get on with their jobs.”
— Robert Townsend

Anonymous said...

we now understand that we can refinance our owner occupied housing loan / term loan as follows:

1. We prepay SGD XX,000.00

2. Our loan(s) tenure is reduced to XXXteen (XX) years

3. The interest rate should be fixed for the first three years at approx. 1.58%, 1.88% & 2.38 respectively.


As such please be advice that our application for refinancing is withdrawn and you can disregard same.

Anonymous said...

Cannot even keeeep their own house in order on money laundering yet getting paid just to tell people what to do.Assholds.