In a move that has caught almost everyone by surprise, the Singaporean government has announced that from September 1 private lenders will have first claim on mortgage properties that are partially financed using money borrowed from the Central Provident Fund CPF, the country's public pension entity.
Additionally, as of Jan 1 next year they will also get first lien over mortgages used to buy Housing Development Board properties.
The new ruling is a complete reversal of the government's previous policy in which the CPF always had first charge, meaning that whenever a property was sold û voluntarily or otherwise û proceeds would first be used to repay any funds a borrower had used from...
