17,000 plus applications received for mortgage payment deferment as virus reaches Singapore

  • In response to the gradually increasing impact of the Corona virus outbreak more than 17,000 applications were registered by the consumers to defer their mortgage repayments.
  • The above figure is a result of data collected across seven major retails banks in Singapore with an estimated 3% of mortgage loan values across the country and 2% of outstanding home loans.
  • Based on the recent relief measures at least 3,000 applications have been received by the banks from the customers to convert their outstanding balances in personal unsecured loans to a term loan with lower interest rates.
  • While the numbers are not still high but still it is showing the impact of the deadly covid-19 virus onto the country’s economy and the households. The numbers are expected to increase as the people lose their jobs and experience pay cuts as an aftermath of the deadly virus outbreak.
  • A senior May Bank economist, Chua Hak Bin, said, that the numbers may increase double the count of current tally if the circuit breaker measures are extended for the next 2-3 months.
  • All the banks and financial institution were guided by the Monetary Authority of Singapore (MAS) to allow deferment on mortgage repayments till the end of the year to the applicants on principal amount or both – principal or interest amounts without showing the impact of Covid-19.
  • Head of Consumer Financial Services at OCBC, Sunny Quek, said that the bank has been receiving the requests for deferment regularly as the economic condition is worsening and it will keep on increasing as more and more people lose their jobs or experience pay cuts. These people will definitely welcome any relief that comes their way to ease their pressing cashflow.
  • OCBC received more than 3,000 requests and approved 90% of the application while UOB received 4,500 application and the major mortgage player DBS received 8,000 applications for deferment.
  • Maybank received about 2,000 applications for mortgage repayments while HSBC, Citibank and Standard Chartered said that they only received enquiries about the various relief measures but refused to share the numbers.
  • Singapore has reported 6,588 virus cases till 19th April 2020, the highest among Asian nations but the death rate is considerably low here. The increase in the number of cases reported recently is attributed to the work permit holders getting infected by the pandemic disease.

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