INCREASE WAIT-OUT PERIOD
Private home owners will have a 15-month wait-out period before they can purchase a non-subsidised HDB resale even. This will kick in once they have sold their property.
The new principle will also apply to people who sold their personal property prior to posting an application to buy a resale flat.
This kind of property owners were formerly allowed to buy a HDB resale flat over the open market, as long as they sell their private properties within 6 months of the purchase.
This wait-out time period will not apply to seniors aged 55 and above who are relocating from their private real estate to a four-room or smaller resale toned, the agencies said.
The wait-out period for personal home owners who are first-timers and wish to make an application for the Central Provident Fund (CPF) Casing Grant and Improved CPF Housing Give for their resale level purchase also continues to be unchanged at 30 months.
“It is a temporary measure which will be reviewed within future depending on general market conditions and housing demand, ” they added.
“The Government continues to be committed to keep community housing inclusive, inexpensive and accessible in order to Singaporeans. We will keep monitor the property marketplace and adjust the policies to ensure that they remain relevant.
“We urge households to exercise prudence before taking up any kind of new loans, and become sure of their debt-servicing ability before making long lasting financial commitments. ”
In December, the Government announced a set of measures to awesome the private residential and HDB resell markets.
This included raising Extra Buyer’s Stamp Duty (ABSD) rates, tightening up the total financial debt servicing ratio threshold and lowering the LTV restrict for loans.
ABSD rates for Singapore citizens plus permanent residents purchasing their first residential property remained unchanged at 0 percent and 5 % respectively. However , it had been increased for those buying a second or a 3rd and subsequent home property.
The Government also tightened the entire debt servicing ratio threshold through 60 per cent to 55 per cent, meaning new mortgages cannot cause borrowers’ total monthly loan repayments to exceed 55 per cent of their monthly income.
This had also earlier cut the LTV limit for HDB loans, from ninety per cent to eighty-five per cent.