MAS Managing Director Ravi Menon described that last week’s loosening of mortgage refinancing rules by the central bank is targeted at easing the debt burdens of homeowners, and not create demand for new home loans.
“This doesn’t represent an easing whatsoever,” he said. If you search for a prop up to the marketplace, as it doesn’t apply to new loans this is not going to help. Without creating new demand for home loans this is to enhance fiscal prudence. We won’t facilitate anytime soon.”
On the other hand, the exemption only applies to owner-occupiers.
House sales and prices in Singapore have slowed since housing curbs were introduced by the authorities with some of the strictest measures including higher stamp duties on the TDSR framework and residential acquisitions, in 2009.
The authorities have said they are not ready to facilitate the curbs, despite slowing economic growth and rising unemployment. Dwelling values in the city state have dropped by 9.4 percent from its peak in 2013.