Monetary Authority of Singapore
Dear Sir,
I refer to Cash-backs may be undermining HDB's objective (Today, 20 December 2004).
2 Under MAS' Notices on Housing Loans, banks and other financial institutions are required to compute their housing loan quantums so that the borrower would have to make a cash downpayment of at least 10% for private property purchases and 2% (to be revised to 4% from 1 January 2005) for HDB flat purchases.
3 MAS does not allow cash back and other schemes that have the effect of assisting the borrower to meet the minimum cash downpayment.
Yours sincerely,
Christina Tan
Deputy Director (Communications)