Abstract:
In this paper we will provide you the informations regarding home loans in Singapore. The mortgage lending will be increased. The banks will also increase the property loans.
Some big banks of Singapore, like United Overseas Bank and DBS Bank, are likely to raise the mortgage lending after the government announced that the home buyers will be permitted to borrow for
buying real estate.
The government has increased the mortgage ceiling from 80% of property value to 90%. It provides a pension savings scheme to buy homes to the citizens aged between 30 to 60 years. Earlier, the use of this scheme was concentrated only into the properties with leaseholds for a long period.
Home loans were risen up to 9.7% in 2006 which was less than half compared to the figure of 1996 when the property values were pretty high.
According to government's report, the property loan given by the banks will increase. Therefore, the banks will be able to increase their earnings by nearly 5%.
In 1996, the government introduced the 80% lending limit to prevent crisis in the property market. The 20% deposit criteria was set to protect the banks from property price volatility.
In 2006, the Citibank of Singapore started to give home loans to those owner also who have more than one resident. The Citibank also provided many other home loan facilities to survive in the competitive market.