
Latest property measures may weed out marginal buyers
Check out this simple computation of monthly mortgage payment with the latest cooling measures.
MayBank's sensitivity analysis shows that for a SGD1 million loan, the monthly mortgage payment increases by nearly 13% to SGD3,451 on a base case interest rate of 1.5% p.a. when the loan tenure is reduced from 35 years to 30 years.
"We believe that marginal buyers will increasingly be forced out of the market if they deem the increase in monthly payments excessive, or if they do not have enough cash on hand for the higher downpayments should they insist on taking loans exceeding 30 years, or beyond the retirement age," it said in its latest report.