THE Government has imposed fresh curbs to cool the property market with the introduction of a new debt servicing framework. From June 29, a buyer’s monthly housing repayments cannot exceed 60 per cent of his income. The Monetary Authority of Singapore will also refine rules related to the application of the existing loan-to-value (LTV) limits on housing loans.

On first glance, this seem a rather useless measure. It is useless because exceeding so much of your monthly income to service leverage assets is rather risky that only the minority will do it. Or is it really useless. The government would probably have better data then we do. Now what if the data they are seeing is that a significant proportion of locals are really doing this? Now that would be a startling revelation. Or this could just be a proactive rule just in case  Singaporeans get really stupid financially to ......