Individuals with housing loans may apply to repay 60% of their monthly instalments for up to nine months

8 Oct 2020

Singapore banks received over 17,000 home deferment applications

As part of a series of the COVID-19 relief measures, applicants need only prove that their income has been affected and that their loan payments are not more than 90 days due, whether or not they had availed of earlier payment reliefs

Starting 9 November, individuals with housing loans can apply to reduce their loan repayments to 60% of their monthly instalments for up to nine months, reported TODAY.

This is part of a series of COVID-19 relief measures that the Monetary Authority of Singapore (MAS) will extend beyond 31 December.

Unveiled in April by MAS, the relief measures – most of which are due to expire by year-end – are aimed at helping individuals and businesses affected by the COVID-19 pandemic.

“The extended support measures will give such individuals and businesses currently under loan repayment deferrals more time to resume repayments,” MAS said as quoted by TODAY.

“The support measures will also be available to borrowers previously not under any payment deferral, but who are now facing cashflow challenges.”

Recommended article: Home Financing Strategies For Managing Cash Flow Amidst COVID-19 Pandemic

To avail of the reduced monthly instalments, individuals with residential loans need only show that their income has been affected by at least 25% and that their property loan are not more than 90 days past due. This is regardless of whether they had previously taken up payment reliefs.

Those who meet the criteria can apply for the loan relief from 9 November 2020 to 30 June 2021.

The relief will be granted for a period of nine months starting from the date of the application’s approval, but cannot go beyond 31 December 2021.

Individuals who continue to have difficulties making repayments following the end of the programme can approach their banks to request for an extension of their loan tenures by up to three years. 

As of August, MAS revealed that there were around 36,000 applications for the postponement of property loan payments and around $29 billion worth of loans deferred.

Recommended article: 4 Financial Tips for Managing Your Property Amid the COVID-19 Crisis

Meanwhile, individuals with renovation and student loans can also have loan tenures extended by up to three years, to lower their monthly instalments and ease cashflow pressures.

Applicants need only prove that their income has been affected and that their loan payments are not more than 90 days due, whether or not they had availed of earlier payment reliefs. 

With economic activities opening up, MAS urged borrowers who are able to resume paying their loan instalments in full to start doing so from 1 January 2021, given that further postponement would only increase their overall debt.

Looking for a property in Singapore? Visit PropertyGuru’s Listings, Project Reviews and Guides.


You may also like these articles

Helping Those Affected By COVID-19

In the last quarter of a century, Southeast Asia – including Singapore – has seen its share of challenges and crises, with the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis bein

Continue Reading28 Apr 2020

COVID-19 (temporary measures) act extends to buyers who buy from developers

The COVID-19 (Temporary Measures) Act has been extended to cover lease of residential properties, option to purchase (OTP) agreements as well as sale and purchase agreements (S&PA).Legal relief

Continue Reading14 May 2020

Home Of All COVID-19 Relief Initiative Efforts for Agent Partners

In continuation of our efforts to stand united with you and give as much support as possible, we’ve launched a dedicated one-stop Resource Guide that’s home to all the COVID-19 Relief Initiativ

Continue Reading15 May 2020