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MAS lastest CM measure


Wind30
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I emailed MAS asking them about their lastest CM measure to restrict loan Tenure.

 

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I refer to your 5 Oct announcement

 

MAS Restricts Loan Tenure for Residential Properties.

 

Can I ask if there is two borrowers of different age, the loan tenure is based on the younger or the older person?

 

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What do you think MAS answer is?

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Er....if memory still in gd order, tink was mentioned in some posts that it will be based on the younger person's age.

 

Safe ride

Cheers

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Just curious what their people think. I think it should be based on older else it will be totally ineffective.

 

I mean if you include two people income in the loan application, one higher earner at 45 years old and another wife at 30, I don't see why the loan should be pegged to the younger...

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younger.

 

no need be loanee, I think as guarantor also can

 

Izzit? Then err... What is the point of the latest cm? Wasting taxpayers money to think up of such ineffective measures? Basically u still can take as long as you want, just need to put your sons name...

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Izzit? Then err... What is the point of the latest cm? Wasting taxpayers money to think up of such ineffective measures? Basically u still can take as long as you want, just need to put your sons name...

 

What's the min age? 18 or 21?

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Izzit? Then err... What is the point of the latest cm? Wasting taxpayers money to think up of such ineffective measures? Basically u still can take as long as you want, just need to put your sons name...

 

put your son name also must see he got ability anot and his other loans... mai gong leh....

 

you want find fault with govt, don't take us as scapegoat leh...

 

go F them in their face lar.. you think the tax you pay is cow cart wheel ar

 

 

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put your son name also must see he got ability anot and his other loans... mai gong leh....

 

you want find fault with govt, don't take us as scapegoat leh...

 

go F them in their face lar.. you think the tax you pay is cow cart wheel ar

 

You very eng hor... [laugh] Tonite i will be on your side. I stand by you. [wave]

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Izzit? Then err... What is the point of the latest cm? Wasting taxpayers money to think up of such ineffective measures? Basically u still can take as long as you want, just need to put your sons name...

 

 

u first time taking property loan izit? this has been the practice for the longest time.

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(edited)

put your son name also must see he got ability anot and his other loans... mai gong leh....

 

you want find fault with govt, don't take us as scapegoat leh...

 

go F them in their face lar.. you think the tax you pay is cow cart wheel ar

 

Duh... I already email mas. I am just wondering if other people feel the same way. More people email, mas may clarify their stand and do this cm right.

 

Ultimately it is about what MAS wants to do right?

 

MAS is concerned about Banks giving Loans tenure what are way too long and extend into the borrowers retirement years. So MAS wants to set a cap on the loan tenure. Why should the cap be set against the younger borrower? I mean if BOTH borrower's income are used to justify the loan amount, shouldn't the cap be set against the older person because once the older guy retire, his income is taken out of the equation.

 

Simple case, husband 45 years old wife 35 years of age. They used both their incomes to get a housing loan. Assuming that the husband has the higher income which is very likely, the bulk of income used to secure the loan will be coming from the husband. If MAS wants to make sure that the loan is prudent, the age of the loan should be set against the borrower with the highest income.

 

This I feel is the most logical solution.

 

If you pegged it at the younger borrower, the wife could a housewife and still allow the husband to borrow into age 75 (husband's age).

 

We can argue whether the recent CM "intention" which is to restrict people from borrowing past retirement age is good or bad but that is not the point. MAS already feels that it is BAD and they want to clamp down on such borrowing. But the way they have implemented it is ineffective.

 

PS:What is cow cart wheel??

Edited by Wind30
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Duh... I already email mas. I am just wondering if other people feel the same way. More people email, mas may clarify their stand and do this cm right.

 

What is cow cart wheel??

 

If you feel so strongly about it, write to media, be it print media or social media.... There is online citizen, TRE, TRS and dunno wat alternative also.... [laugh]

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TS, so what is MAS answer? From your angry posts, it appears that it should be the younger co applicant? Good for you then..if you are taking loans..one more 'loophole' for us to exploit..keke

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(edited)

TS, so what is MAS answer? From your angry posts, it appears that it should be the younger co applicant? Good for you then..if you are taking loans..one more 'loophole' for us to exploit..keke

 

my posts is angry meh? I was trying to be logical leh...

 

I wrote a reply asking for permission to post MAS reply online. There was a disclaimer clause in the email about it being confidential....

 

But the basic idea was MAS does not specify whose age to take and it is up to the bank to decide. They expect the bank to assess themselves....

 

To me it was like... duh... I thought the whole point of the CM was that the Banks are not responsible enough to assess for themselves else they will not be coming out with 50 year loans and this CM will not be introduced. To me it was totally illogical. The banks competing for business will just choose the youngest age, I mean Bank A will think "I don't give the loan, bank B will since it is legal."

Edited by Wind30
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my posts is angry meh? I was trying to be logical leh...

 

I wrote a reply asking for permission to post MAS reply online. There was a disclaimer clause in the email about it being confidential....

 

But the basic idea was MAS does not specify whose age to take and it is up to the bank to decide. They expect the bank to assess themselves....

 

To me it was like... duh... I thought the whole point of the CM was that the Banks are not responsible enough to assess for themselves else they will not be coming out with 50 year loans and this CM will not be introduced. To me it was totally illogical. The banks competing for business will just choose the youngest age, I mean Bank A will think "I don't give the loan, bank B will since it is legal."

 

Haha, bank assess themselves = loophole. Hope MAS to come out with a stand and stop the loophole.

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Haha, bank assess themselves = loophole. Hope MAS to come out with a stand and stop the loophole.

 

you can help by emailing MAS asking about this. I think if enough people explain it to them, they will probably do something.

 

Frankly, I thought the latest CM by MAS is actually quite a good measure. With such historical low interest rates, Banks are smart in trying to sell super long loans to encourage people to borrow more. Basically, your monthly repayment is very little if you take like 40-50 year loans so you can borrow more.

 

But such loans only make sense when interest rates are low. When rates are like 5%, NOBODY in the right mind will take a 50 year old loans after doing the sums since you will be paying a lot in interests. If singaporeans get sucked into such 50 year old loans thinking interest rates will stay low, there will be a lot of pain down the road when interest rates go back up.

 

MAS cannot increase interest rates easily but by limiting the loan tenure, they can soften the adverse impact of super low interest rates.

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