Scenes of chaos reminiscent of a Hello Kitty giveaway ensued last night as a tsunami of prospective home buyers flooded showflats.
They followed the government’s announcement yesterday (Jul 5) that adjustments would be made to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits on residential property purchases.
According to The Business Times, these measures by the government are aimed at cooling the property market and keeping price escalations in line with economic fundamentals.
Here is how you could be affected.
#1: A 5 percentage point increase in ABSD if you are buying your second property
Depending on the property of your choice, that could mean you have to cough up at least an additional $50,000. However, the ABSD rates for Singaporeans and PRs buying their first residential property remain at 0 per cent and 5 per cent respectively.
#2:Foreigners buying any property would face a 20 per cent ABSD
This figure is up from the current 15 per cent.
#3: A transitional provision is in place
Potential buyers granted the Option to Purchase (OTP) by sellers on or before July 5 can enjoy this.
#4: LTV limits will be tightened by five percentage points
These limits apply to all housing loans granted by financial institutions, and to loans for residential property purchases where the option to purchase is granted on or after July 6.
#5: LTV limits for mortgage equity withdrawal loans (MWLs) will be tightened to 75 per cent
This applies to a borrower with no outstanding housing loan for the purchase of another residential property. If a borrower has an outstanding housing loan, this will be at 45 per cent for another residential purchase.