As part of the safety measures for COVID-19, the applicants are required to submit proof that they will testify that their revenues and income were affected and loan payments are long overdue (90 days), availed or unable to avail the earlier payment offer.
Starting 9th of November, those Singaporeans with a housing loan can grab the chance of reducing to as much as 60% of their loan repayments up to longest term which is nine months, said TODAY.
This is just one of the many relief measures COVID -19 has taken by the Monetary Authority of Singapore (MAS) that will stretch until December 31 or even beyond.
MAS disclosed it in April, the said relief measures, the majority are bound to expire by December, are designed to help all locals and businesses hit by the pandemic.
“The stretched support system gives a chance for the Singaporeans and businesses that are presently under amortization deferrals an extended time to continue repayments,” Mas said as reported by TODAY.
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” The support system policy can also be enjoyed by borrowers who did not have any payment deferrals but same, experiencing cash flow challenges.”
To enjoy lowered monthly amortizations, individuals who have residential loans are required to present proof of an affected income of at least 25% and housing loans are not 90 days overdue. This is whether or not they have enjoyed previous payments reliefs.
Those who meet the required criteria can avail the loan relief starting November 9th to 39th of June 2021.
The relief remains valid for nine months, beginning with the approval of the application until December 31, 2021, but will not go beyond that.
Individuals who still find it difficult to make repayments even after December 31st can check with their bank to ask for another extension of loan tenures for a maximum of three years.
Last August, MAS divulged the 36,000 applications for housing loan payment extension and loans deferred that reached $29 billion.
Meanwhile for those having renovation and an educational loan can still avail loan tenures extension up to a maximum of three years to reduce monthly amortizations and at least reduce cash flow stress.
Applicants are required to prove that their income has been devastated by the COVID-19 and loan payments are less than or only 90 days past due, whether availed or not of the earlier payments policy.
As economic activities start to roll. MAS encouraged lenders who have the financial capacity to pay their loan dues in full to start as early as January 1, 2021, because the longer the extension would mean an increase in total debt.
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