Consider letting young Singaporeans borrow more to fund housing dreams

BORROWING to buy a dream home? Availability of debt financing is good, and interest rates may come down. However, a myriad of rules govern how much one can borrow. 

For a borrower with no outstanding housing loan, the loan-to-value (LTV) limit for a home loan from a financial institution is 75 per cent. A lower LTV limit of 55 per cent applies if the loan tenure exceeds 25 years for Housing and Development Board (HDB) flats and 30 years for private homes, or if the loan period extends beyond the borrower’s age of 65 years.

Currently, the maximum tenure for loans from financial institutions is capped at 30 years for HDB homes and 35 years for non-HDB homes.