Removal of Legal Subsidy, Valuation Subsidy and Free Fire Insurance
Banks have recently removed freebies that are normally offered to Housing Loan customers (for both HDB and private residential properties). These benefits include legal subsidies, valuation subsidies and free fire insurance for first year. Under the MAS guidelines, these benefits are considered cash rebates and should be deducted from the purchase price before arriving at the loan amount. This is similar to discounts or rebates for stamp duty, furniture and renovation offered by developers, which are to be deducted from the purchase price first before arriving on the loan amount.