In today's Straits Times MAS warns that 1 in 10 borrowers are overstretched. These borrowers has debts that exceed 60% of their monthly income and majority of these debts are property...
An increase of home loan interest rates may just push these debts beyond 100% of monthly income, forcing this people to sell their property, causing more demand and bringing property price down and that was why Singapore's banking sector's credit was downgraded recently, cos there may be a repeat of 2003 where a condominium bought in 1997 at $980,000 cost $450,000 in 2003. Read my earlier post here. Well, peoples' memories going to be jolted again... maybe. We shall see..
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