MAS to place cap on motor vehicle loans from Tuesday 26Feb2013

Owning a car is going to be really tough for Singaporeans now! Check out this breaking news!!

Thank God I haven't sold my car like I initially intended to! Else I dont think I can afford another one very soon! Phew! Hopefully for Singaporean, the Taxi Fares are gonna drop, with more Taxi supplied on the roads, and hope the MRT dont break down so often with more frequency in the arrival timings! Else its gonna be really inconvenient to get around in future, and people would be in a way forced to hang out only in their own zones as they would find it a hassle to travel around!

" The Monetary Authority of Singapore (MAS) will place a cap on motor vehicle loans from Tuesday Feb 26.

For a motor vehicle with open market value that does not exceed $20,000, the maximum loan-to-value is 60 per cent of the purchase price, including relevant taxes and the price of the Certificate of Entitlement.

For vehicles with an open market value of more than $20,000, the maximum loan will be capped at 50 per cent.

In addition, the tenure of a motor vehicle loan will be capped at 5 years.

In a statement on Monday, the MAS said: "The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles."

The financing restrictions will not apply to loans for the purchase of commercial vehicles or motorcycles. "

Quoted from http://www.straitstimes.com/breaking-news/singapore/story/mas-place-cap-motor-vehicle-loans-tuesday-feb-26-20130225