Monetary Authority of Singapore Annual Report 2010/2011
Our Work
ENSURING SAFETY AND SOUNDNESS OF FINANCIAL INSTITUTIONS AND FINANCIAL SYSTEM   27
Prudential Supervision and Surveillance   27
Fostering a Sound and Reputable Financial Centre   27
Property Market Measures   28
Review of Deposit Insurance Scheme in Singapore   28
Insurance Resolution and Policy Owners' Protection   28
Review of Insurance Act   29
Enhancing Safeguards for Retail Customers   29
Enhancing Regulatory Regime for Fund Management Companies   30
Achieving Fair Dealing Outcomes   30
Enhancing Corporate Governance Standards   31
Conclusion of First Two Civil Penalty Cases   31
Box 3: The Representative Notification Framework   32
Enhancing Market Conduct   33
Audit Assurance   33

Property Market Measures

In August 2010, MAS announced the lowering of loan-to-value (LTV) limit as part of the property measures taken by the Government. The LTV for residential property loans was lowered from 80% to 70% for borrowers who have one or more outstanding housing loans. The minimum cash payment was also increased from 5% to 10% for this group of borrowers. The moves were intended to temper sentiments and encourage greater financial prudence among property purchasers.

In January 2011, MAS further announced the lowering of the LTV limit to 60% for borrowers who have one or more outstanding housing loans as part of the targeted measures taken by the Government to pre-empt a property bubble from forming. The LTV limit for borrowers who are not individuals was further lowered to 50%. The lowering of the LTV limit was to send a clear signal to financial institutions to maintain credit standards and encourage greater financial prudence among property purchasers already servicing one or more outstanding housing loans.