Housing Loan Fact Sheet
The Monetary Authority of Singapore, Singapore's central bank, has issued a consultation paper on housing loan fact sheet. This housing loan fact sheet is aimed at helping housing loan consumers understand the severe implications when bank loan interest rates go up. Such a housing loan fact sheet will come in standard form and be simple to read and understand for housing loan consumers.
Some information on the housing loan fact sheet is produced below.
Residential Property Loans Fact Sheet
MAS Consults on Residential Property Loans Fact Sheet
Singapore, 22 June 2011
The Monetary Authority of Singapore (MAS) has proposed that financial institutions (FIs) provide a Fact Sheet, in a standardised format, when marketing residential property loans to consumers. MAS invited feedback on its proposal, which was published in a consultation paper today.
2 A residential property loan is a long-term financial commitment. The current low global interest rate environment will not continue indefinitely. The Fact Sheet is intended to help consumers understand that higher interest rates could have severe implications if they overextend themselves. The Fact Sheet will provide, in an accessible form, information essential to a consumer’s decision to take up a residential property loan, including information on how their loan repayments may change under different interest rate scenarios.
3 FIs will be required to provide the Fact Sheet to consumers when they first enter into a discussion with the consumer on the key features of the loan for his public or private residential property purchase in Singapore.
4 Specifically, MAS proposes that the Fact Sheet contain the following information:
a) tenor of loan, loan amount, lock-in period (if applicable), and whether the FI has the right to vary the interest rate;
b) monthly and annual repayment amounts;
c) monthly installments at different interest rate levels and past trends in the benchmark rate of the loan;
d) fees payable; and
e) links to MoneySENSE-Association of Banks in Singapore (ABS) and CPF websites which guide consumers to online resources for information relevant to their home loan decisions.
5 Before committing to a loan, consumers should understand the terms and conditions of their loans, and assess their ability to meet their repayment obligations. The information provided in the Fact Sheet should be part of what consumers take into account.
6 The consultation paper can be accessed on the MAS website and the consultation will be open for 30 days. MAS will consider all feedback received in finalising the proposal.
Singapore Housing Loan Rates subject to change.
Housing Loan Rate
