BREAKING. MAS ASKING BANKS TO EXTEND DEBT RELIEF INTO 2021

[ninefile]

Defer not defer also need to pay. Just a matter of when only.

Encourage gambler mentality

Just like the hyflux

Good time they earn bad time expect govt to step in to help them

Next recession all homeowners will be asking for this deferrment again ,and again,and again....

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[kevphua]

Based on what I see and know in real life, I know of some families who didn't have any issues repaying loans but purposely defer repaying because:

- cheap money why not
- use the money interim to buy stocks

 

[rodimus_prime]

Can always let next generation take over the mortgage mah ? Spread out over 60 year loan

So long as property values don’t tank > 5% and banks minimize write offs; anything goes. Policy makers lack iron to do what is right. Rather kick can down the road and pray it remains peaceful during their watch. What happens after they retire no longer their problem. That is the mindset.

 

[EvilPaladin]

What happens at end of debt monotorium? Since there's a fixed number of years the loan can be extended (max loan period correlates with age) , then the monthly mortgage payments must be adjusted? That means higher monthly unless rates are lower than they are now, so how do you reconcile with TDSR?

interesting question. would love to know the answer to this

 

[treeskull]

Deferring is a new way of printing money

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[nats7798]

I’m starting to think that working in modern times is a con story

Government just give welfare and we spend spend spend to make economy move

Those who still working maybe get abit more

Those don’t want to work get 2k a month to spend

 

[walterwu]

Defer not defer also need to pay. Just a matter of when only.

There is a point that banks may have considered:

If a property can appreciate over time, the issue is smaller if borrower can service the interest, it would be able to recover principal on forced sale. So no issue.

If property drop, then became an issue.

Say for example, if bought a property at $700,000 and value now is $900,000 on resale market, no issue. Principal loaned out somewhat protected.

For HDB, where it should go towards zero value, that is going to be a bigger problem. Thanks Lawrence.

 

[RedEyesFan]

There is a point that banks may have considered:

If a property can appreciate over time, the issue is smaller if borrower can service the interest, it would be able to recover principal on forced sale. So no issue.

If property drop, then became an issue.

Say for example, if bought a property at $700,000 and value now is $900,000 on resale market, no issue. Principal loaned out somewhat protected.

For HDB, where it should go towards zero value, that is going to be a bigger problem. Thanks Lawrence.

Mah Bow Tan is the one that caused HDB price to hyper inflate.

 

[worcer]

By delaying payments, it creates a vacuum in financial services which will cripple some services... Soon a bigger ripple effect will appear...

U will have to pay for it later at a bigger problem ...

 

[walterwu]

Mah Bow Tan is the one that caused HDB price to hyper inflate.

Noted. Lawrence will ensure it goes down to zero.

 

[LPPLKPKB]

Deferring is a new way of printing money

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China big banks have been doing that for years for provincial/county governments, effectively perpetual IOUs.

 

[soaresb]

There is a point that banks may have considered:

If a property can appreciate over time, the issue is smaller if borrower can service the interest, it would be able to recover principal on forced sale. So no issue.

If property drop, then became an issue.

Say for example, if bought a property at $700,000 and value now is $900,000 on resale market, no issue. Principal loaned out somewhat protected.

For HDB, where it should go towards zero value, that is going to be a bigger problem. Thanks Lawrence.

Slowly going to zero is fine, no issue there. Property is the biggest lever the government has to control rising costs and singapore's overall competitiveness, so no surprise if the intention is to slowly deflate via property. They will tolerate a few quarters of spikes here and there but general trend should be flat or slightly downwards for the foreseeable future.

 

[Roundtreex]

defer only dun need show defaulted in balance sheet only. looks nicer.

lol did i predict wrongly? They will just extend lol.
Track record!!

 

[jericho75]

Ya lor if cant pay now what are chance they can pay soon?

is like some father kept thinking that his son is good in politics. hope is just hope.

 

[jericho75]

lol did i predict wrongly? They will just extend lol.
Track record!!

means the problem too serious. can only kick further.

 

[CSNation]

Satki huats

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[walterwu]

Slowly going to zero is fine, no issue there. Property is the biggest lever the government has to control rising costs and singapore's overall competitiveness, so no surprise if the intention is to slowly deflate via property. They will tolerate a few quarters of spikes here and there but general trend should be flat or slightly downwards for the foreseeable future.

You mean it is OK for 99 years hdb leasehold property to go to zero while same 99 years private leasehold can en-boc?

 

[F3Rm1nat0r]

Mah Bow Tan is the one that caused HDB price to hyper inflate.

yeah, all sinkies are still cursing him
Caused our children to be stuck with high property prices

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[matchy]