What you need to know about the relaxed homeowners' refinancing rules

It’s not aimed at raising demand for housing loans.

The central bank of Singapore loosened up mortgage refinancing rules last week not so much to boost demand for new housing loans but more to relieve homeowners of their debt burdens.

Bloomberg reported that households who are refinancing their ongoing mortgages will be free from a 60% cap on their total debt-servicing ratio. Monetary Authority of Singapore head Ravi Menon said the exemption only applies to owner-occupiers.

“This is to improve financial prudence without creating new demand for housing loans,” the central bank chief said.

Read the full report here.

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