THE volume of new home loans granted by banks here continued to fall in the third quarter, as volatile financial markets made both borrowers and lenders more cautious in the housing market.
Some $12.41 billion in new housing loans was granted in Q3, down 3.5 per cent from the $12.86 billion in Q2, according to the latest estimates by the Monetary Authority of Singapore. That follows a 4.2 per cent drop in housing loans granted in Q2 compared to Q1.
As in the previous quarter, new loans granted for owner-occupied property fell by more than loans for investment property.
The average loan-to-value (LTV) ratio for housing loans across the industry was unchanged in Q3, at 44.1 per cent, compared to Q2.
The industry-wide LTV average is calculated by weighting each financial institution's LTV ratio by the volume of outstanding loans it granted. It is based on an MAS survey of housing loans at financial institutions that account for over 90 per cent of the total outstanding housing loans extended by the industry, MAS said.
Source: Business Times – 1 November 2011
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