e) Revision of Mortgage Loan Terms
16To ensure financial prudence in purchase of public housing and discourage over-consumption, we will reduce the maximum tenure for HDB housing loans from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit will also be reduced from 35% to 30% of the borrower’s gross monthly income (see Annex C 
(PDF 139KB) for details). These measures are in line with those introduced by the Monetary Authority of Singapore (MAS) to encourage financial prudence among borrowers, which is especially important given that the current low interest rate environment is unlikely to be sustained.
(PDF 139KB) for details). These measures are in line with those introduced by the Monetary Authority of Singapore (MAS) to encourage financial prudence among borrowers, which is especially important given that the current low interest rate environment is unlikely to be sustained.
17In tandem, the MAS will reduce the maximum tenure of new housing loans and re-financing facilities1 granted by financial institutions for the purchase of HDB flats (including DBSS flats) from 35 years to 30 years. New loans with tenures exceeding 25 years and up to 30 years will be subject to tighter loan-to-value (LTV) limits 2 .
f) Requiring Singapore Permanent Resident Households to Wait Three Years
18Currently, Singapore Permanent Resident (SPR) households, i.e. SPR households with no Singapore citizen owner, may buy resale HDB flats as soon as they acquire SPR status.
19We have reviewed this policy and have decided that SPR households should wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat.
20This measure will apply to resale applications received on or after 27 Aug 2013, 5:30pm.
21For further enquiries on any of the above measures, the public can contact HDB:
Sales/Resale Customer Service Line: 1800-866-3066
Branch Service Line: 1800-225-5432 (for transfer of existing flat)
1Where a borrower applies for a re-financing facility in relation to the purchase of a HDB flat, the sum of the tenure of the re-financing facility and the number of years since the first housing loan granted to the borrower for the purchase of that HDB flat was first disbursed, cannot exceed 30 years.
2For a borrower who has no outstanding housing loan, the LTV limit will be 80%, if the loan tenure does not exceed 25 years and the loan period does not extend beyond the borrower’s retirement age of 65. If the loan tenure exceeds 25 years or if the loan period extends beyond the borrower’s retirement age of 65, the LTV limit for the loan will be 60%.
Source: HDB