Among the proposed inclusions in the fact sheet are past trends in the benchmark rate of the loan.
The Monetary Authority of Singapore has proposed that financial institutions provide a fact sheet, in a standardized format, when marketing residential property loans to consumers. MAS invited feedback on its proposal, which was published in a consultation paper.
The fact sheet is intended to help consumers understand that higher interest rates could have severe implications if they overextend themselves. The fact sheet will provide, in an accessible form, information essential to a consumer’s decision to take up a residential property loan, including information on how their loan repayments may change under different interest rate scenarios.
FIs will be required to provide the fact sheet to consumers when they first enter into a discussion with the consumer on the key features of the loan for his public or private residential property purchase in Singapore.
Specifically, MAS proposes that the fact sheet contains the following information:
a) tenor of loan, loan amount, lock-in period (if applicable), and whether the FI has the right to vary the interest rate;
b) monthly and annual repayment amounts;
c) monthly installments at different interest rate levels and past trends in the benchmark rate of the loan;
d) fees payable; and
e) links to MoneySENSE-Association of Banks in Singapore (ABS) and CPF websites which guide consumers to online resources for information relevant to their home loan decisions.
The consultation paper can be accessed on the MAS website and the consultation will be open for 30 days. MAS will consider all feedback received in finalising the proposal.
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