Guess which bank was the most aggressive in the market?
Based on Barclays' channel checks, the latest cooling measures affect up to 10% of new mortgage applications (~2% of existing book assuming average duration of 5 years), taking into account loan tenure and affordability.
Here's more from Barclays:
OCBC was the most aggressive in the mortgage market, growing its mortgage book by 9% in 1H12 h/h.
As corporate lending slows, we expect DBS and UOB to be more active in winning mortgage market share in 2H12E.
Given that the average system mortgage LTV is only 44%, we believe the risk of substantial losses from potential property price declines is minimal.
The biggest risk we see to mortgage asset quality is a potential rise in unemployment. Unemployment remains low at 2%.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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