Martin Lee @ Sg
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Tie-ups Between Banks and Developers not Allowed

When MAS recently announced the new debt servicing ratio rules, it was understood that they also communicated to financial institutions that they should not be offering property-related services to their clients.

The restrictions are actually quite wide, some of which are:

  • No special loan rates for designated launches
  • No advertising and promoting of property launches to the bank’s clients. This includes letters, emails, phone calls and SMS.
  • No special previews for banking customers.
The new measures will end one common marketing avenue used by developers.

No to Bank-Developer Tie-Up (Business Times)

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2 comments
Jasmin says 6 years ago

Is this feasible? Most property buyers would need “help” from banks. Without banks, lesser buyers which means developers may make lesser money.

Reply
    Martin Lee says 6 years ago

    Dear Jasmin,

    Banks will still be able to offer loans, the restriction is on special tie-ups.

    Reply
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