Rising property debt at risk?

24 July 2013

(photo from Flickr.com)

Today, I read an article in PropertyGuru regarding latest market news.

Monetary Authority of Singapore (MAS) worries about the risk of rising household debts to its financial system. In a surging market price trend nowadays, a lot of Singaporean households over-borrowed in their mortgages due to banks lower rates and longer repayment terms. It was stated that 5 to 10% of Singaporean mortgagors may have borrowed more than what they can afford. They worries that those who over-borrowed, especially those household with low-income or savings may struggle to repay their mortgage if interest rates rise.

Therefore, Singaporeans needs to be very careful in taking up mortgage loans. There are a lot of things to consider. Banks also may need to practice responsible lending as well.

Owning/Buying a property is a very good investment, of course if you have the mean$. But its not the money, on how much you will earn that always matters, you need to be wise in making decision especially in taking up mortgage loan. Happy Investing!

Shalom!