by Kenny Lee Historical policy and news archive · Source publication: 2022-09-30 · Implementation: 30 September 2022; announced late on 29 September. Prepared retrospectively on 3 October 2026; the archive date follows the cited source. Historical rules must be matched to the relevant transaction date.
The announcement
Housing financing assessments became more conservative amid rising interest rates. The residential bank-loan assessment floor rose to 4%, and HDB introduced a 3% assessment floor. HDB loan LTV fell from 85% to 80%. A temporary fifteen-month wait-out period applied to private property owners and former owners buying a non-subsidised resale flat, with an exception for eligible seniors aged 55 and above moving to a four-room or smaller resale flat.
What this means for property planning
An assessment floor is not the interest rate actually charged on the mortgage. It tests repayment capacity under a higher-rate scenario. A low promotional rate can therefore coexist with a lower maximum loan amount.
The wait-out rule adds a sequencing issue for private owners planning a move to HDB. Before selling, establish the applicable eligibility period, required interim accommodation and whether an exception actually applies. Rent for fifteen months, a second move and storage can materially alter the economics of downsizing. The timing should be assessed before committing to either transaction. This article follows the cited news report’s publication date of 30 September, while separately recording the announcement date.
Before acting
Establish your household profile, property ownership, financing and transaction dates. Obtain a written eligibility or financing assessment where needed. A historical announcement cannot establish your present eligibility, tax liability or borrowing limit.
Source: Original official release or dated news report. Reviewed 3 October 2026.