Some recent comments made by MAS Managing Director, Ravi Menon, has stirred certain groups of people that have been watching the Singapore property space. Two examples he gave:

1. Housing loans – A couple with a combined household income of $6,000 was able to obtain a new housing loan of $400,000. Their monthly instalments on this new loan and their existing loan obligations came to more than 90% of their combined monthly income (debt-to-income ratio). The bank’s decision to approve the loan was based solely on the fact that the couple had savings deposit of $90,000. -The bank officers ought to be shot.
2. Car loans – Some applicants were able to borrow close to 100% of the value of the car, with little or no down payment, for what is essentially a depreciating asset.

(Credit: MAS Annual Report 2012 Press Conference)

The extent of these ‘sub-prime’/dodgy lending practices may not yet be ...