http://www.jproperty.info/images/Easier%20to%20buy%20property.JPG
Click the above for those who have not seen the ST today.
Question is, does raising the loan limit from 80% to 90% of the
valuation going to help at all? In fact even the MPs say that this
move is not to boost the economy. Look deeper....
When it was 80% of valuation limit, many already find it hard to
buy a house using bank loans due to the way the banks calculate
debt ratio. Meaning, the monthly instalment shall not be more than
a certain percentage of your monthly income. At 90% wouldn't that
raise the instalment amount and thus make it even harder for the
man on the street to buy a property?
Not to mention the always present checks with Credit Bureau that
already makes it very hard to get loans from bank when you just
default on one of your many credit cards.
For those who are rushing to buy a property now? My advice to you
is wait out this 1 to 2 years. Let those who stretch their finances
too thinly to buy a property now, fail to contribute to the monthly
instalments and end up in mortgagee sales. In the mean time, use
these 2 years to save up more... then take up a loan of 60% of the
mortgage value to buy these defaulter's properties... 
Its a bit sick I know...
