This relief measure forms part of the relief package that MAS, in collaboration with the financial industry, has put forth to help individuals affected by the COVID-19 pandemic.
The initiative offered by RHB Singapore is intended to help borrowers facing difficulties meeting repayments under their existing mortgage loans, by allowing them to defer repayment of the principal or both principal and interest up to 31 December 2020.
If you are facing cash flow constraints and have difficulties repaying your mortgage during this period, you can consider applying for a mortgage repayment deferment to lower your monthly debt payments up to 31 December 2020. Regular mortgage instalments will resume after the deferment period.
You can choose to defer up to 31 December 2020, either:
|A.||the principal portion of the monthly instalment, while continuing to pay the monthly interest; or|
|B.||the full monthly instalment. Interest will continue to accrue on the principal amount deferred, but no interest-on-interest will be charged during this deferment period.|
You can also choose to extend the tenure of your mortgage by the corresponding period, to lower the monthly instalment amount following resumption of regular payments.
However, you should keep in mind that deferring payments and extending your tenure would result in you will be paying more interest in total. Therefore, it is advisable to only defer repayments if necessary.
Before applying for the deferment, we encourage you to discuss with your relationship manager or our Client Services representatives on your available options.
In the case of a deferment, do take the time to look through the factsheet that would be provided to you. The factsheet would reflect the Monthly repayment amount before the deferment period, Monthly repayment amount during the deferment period, Monthly repayment amount after the deferment period and Total interest accrued during the deferment period.
For a mortgage with $200,000 outstanding and a remaining tenure of 20 years, assuming a 2% interest rate, the extra interest cost over the remaining tenure will be about:
This is a special relief that banks and finance companies have collectively agreed to, and introduced, to help individuals who are facing cash flow difficulties with their mortgage repayments during the COVID-19 pandemic period.
Interest would accrue as the banks and finance companies continue to bear the risks of lending. However, if you choose to defer the full monthly instalment, interest-on-interest will be waived during the deferment period.
No. Repayment deferments are not automatic as individuals will incur higher total interest costs and not all individuals need it. If you need a mortgage repayment deferment, you would have to submit an application to us.
You are eligible if you have a residential mortgage, whether it is a housing loan or a mortgage equity withdrawal loan, and your monthly instalments are not more than 90 days past due.
Repayments under your Debt Reduction Plan that is taken in connection with your residential mortgage can be similarly deferred.
If you are facing difficulties repaying your overseas property loans, you can speak to our loan officers or Client Services representatives.
You can choose to opt for a deferment Principal with or without extension of loan tenure by the corresponding deferment period. The deferment period is up to 31 December 2020 for:
The deferment will not cause the loan to be reflected as a restructured loan in the individual’s credit bureau report. This will be an Opt-in basis, for individuals with loan repayments that are current (i.e. no outstanding repayment) as at 1 February 2020.
You can also choose to defer Principal and Interest payments with or without extension of loan tenure by the corresponding deferment period. The deferment period is up to 31 December 2020.
For both options, interest will accrue only on the deferred principal amount i.e. interest-on-interest is waived.
1 As part of the disbursement of Government relief under the COVID-19 (Temporary Measures) (Amendment) Bill, IRAS will issue a notice of cash grant to two groups of property owners:
|(i).||those with SME tenants|
|(ii).||SME property owners who run a trade or business on their own property|
Individuals with investment property loans that are out of the lock-in period can apply to refinance or reprice their loans, without being subject to the total debt servicing ratio (TDSR) and mortgage servicing ratio (MSR), up to 31 December 2020.
Consequently, individuals who do not meet TDSR and MSR will not need to commit to a debt repayment plan to repay 3% of their outstanding loan amount over 3 years.
Individuals can rely on this exemption to refinance or reprice their loans to lower their monthly payments. Any subsequent application to defer mortgage repayments will be assessed on a case-by-case basis.
If the loan is still within the lock-in period, contractual penalties may apply.
Please contact us at 1800 323 0100 to discuss suitable repayment plans or debt restructuring.
The total interest cost of the mortgage will be higher if you take up the repayment deferment. To assist you in making a decision, you will be given an illustration of the instalments during and after the deferment period, and the estimated increase in total interest cost.
No. You do not need to meet TDSR/MSR to be eligible for the repayment deferment.
The application period is from 6 April 2020 to 31 December 2020. You can apply at any time within the application period if you meet the eligibility criteria by calling us at 1800 323 0100 to find out more on the application process.
The actual approval process will differ from financial institution to financial institution, depending on various factors including the volume of applications received. Nevertheless, financial institutions should generally approve your application expeditiously as long as you meet the eligibility criteria.
No, the deferment will not result in the loan being classified as a restructured loan for the purposes of credit bureau reporting.
You should make your application directly to us through our Customer Contact Centre at 1800 323 0100.
We will never ask for your credit/debit card details, password, or OTP, nor request for a fund transfer to be made to another account. You should verify any unsolicited calls, messages, or emails directly with us through our Customer Contact Centre at 1800 323 0100.
MAS and the financial industry are monitoring the situation closely, and will assess if any additional measures are needed then.