This is very serious when the Housing Minister say things like this:
1. Longer housing loan is not an issue
2. People can take 20-or 25-yr loan if they are not happy with 30yrs
2. Longer housing loan helps people to pay less
3. After 10 years, 15 years, they sell off, and that's it. They make and keep the profit.
Vote wisely
http://www.todayonline.com/Singapore/EDC110501-0000297/Length-of-loan-is-not-the-issue--Mah-Bow-Tan
Length of loan is not the issue: Mah Bow Tan
by Ansley Ng
04:46 AM May 01, 2011
It is not the length of the loan but the percentage of monthly income repayable to the housing loan that matters, said Minister for National Development Mah Bow Tan in response to an Opposition point that paying for a HDB flat on a 30-year loan makes it unaffordable.
The length of the loan varies and is up to the home buyer, Mr Mah said. They are free to take up 30-year loans, or even 25- or 20-year loans, he added.
To ensure that the length of the tenure, the interest rates and loan repayment are within the means of young people to buy their flats, his guidance to the HDB "is usually 30 to 35 per cent (of monthly income)".
For a 30-year loan, the instalment payment is about 25 per cent of monthly income, depending on the type of house, Mr Mah said.
"But if people are not happy with the 30-year loan for whatever reason, they can always take a smaller loan," said Mr Mah, speaking to reporters during a walkabout at the Tampines Round Market yesterday.
Calling it "election rhetoric", Mr Mah said the Opposition always warned people about getting "stuck for 30 years".
But a longer loan actually helps people to pay less, he added.
"Most people who do that, for cash flow reasons (and) never really go the whole 30 years. After 10 years, 15 years, they sell off, and that's it. They make a profit ... keep the profit, and then they use that to upgrade."
1. Longer housing loan is not an issue
2. People can take 20-or 25-yr loan if they are not happy with 30yrs
2. Longer housing loan helps people to pay less
3. After 10 years, 15 years, they sell off, and that's it. They make and keep the profit.
Vote wisely
http://www.todayonline.com/Singapore/EDC110501-0000297/Length-of-loan-is-not-the-issue--Mah-Bow-Tan
Length of loan is not the issue: Mah Bow Tan
by Ansley Ng
04:46 AM May 01, 2011
It is not the length of the loan but the percentage of monthly income repayable to the housing loan that matters, said Minister for National Development Mah Bow Tan in response to an Opposition point that paying for a HDB flat on a 30-year loan makes it unaffordable.
The length of the loan varies and is up to the home buyer, Mr Mah said. They are free to take up 30-year loans, or even 25- or 20-year loans, he added.
To ensure that the length of the tenure, the interest rates and loan repayment are within the means of young people to buy their flats, his guidance to the HDB "is usually 30 to 35 per cent (of monthly income)".
For a 30-year loan, the instalment payment is about 25 per cent of monthly income, depending on the type of house, Mr Mah said.
"But if people are not happy with the 30-year loan for whatever reason, they can always take a smaller loan," said Mr Mah, speaking to reporters during a walkabout at the Tampines Round Market yesterday.
Calling it "election rhetoric", Mr Mah said the Opposition always warned people about getting "stuck for 30 years".
But a longer loan actually helps people to pay less, he added.
"Most people who do that, for cash flow reasons (and) never really go the whole 30 years. After 10 years, 15 years, they sell off, and that's it. They make a profit ... keep the profit, and then they use that to upgrade."
