Introducing Regulations on Fees and Charges by Banks and Financial Institutions for Refinancing Property Loans

68 Mr Christopher de Souza asked the Prime Minister and Minister for Finance whether MAS will introduce regulations relating to the fees and charges that banks and financial institutions charge for the refinancing of property loans.

Mr Gan Kim Yong (for the Prime Minister): Banks compete to offer attractive property loans to customers. Customers can choose to refinance their outstanding loans with their existing bank or with a new bank. They may compare the terms, pricing and fees charged on these loans. The Monetary Authority of Singapore (MAS) requires financial institutions to provide prospective borrowers with a factsheet that clearly discloses fees and charges, including fees incurred should the borrower seek to refinance the loan within a lock-in period.

MAS is not considering directly regulating fees and charges. The existing disclosure requirements enable competition in the market so that borrowers have the necessary information to enable them to make informed decisions when choosing a property loan and when considering whether to refinance the loan.