As part of the initiatives to help Singaporeans tide over cashflow in this difficult period, MAS, Banks and the Tax Authority have came together to assist individuals defer their obligation payment in the near term.
Home Mortgage Deferment
For banks, most of the deferment will apply up until Dec 2020 so that will help tide over working capital needs during these 7 to 8 months period.
Most banks offered 2 packages in the form of i.) Deferral of Principal Payment only or ii.) Deferral of both the Principal And Interest Payment. Interest accrued on the principal will still continue to be applied so what the banks essentially are helping out here is with the credit liquidity. This is vastly different initiatives than what we saw during the Gfc, when banks themselves are short of liquidity.
Interest arrears will be re-amortised when your loan repayment starts...