It is expected that the Regulations will be operative in Q1, 2020. We expect to see the following changes since the publication of CP125:
- Extended 25-year loan maturity limit
- The removal of an inner limit for house loans (i.e. max. 7.5% limit will be permitted)
- The introduction of lending limit of 10% of total assets – with the flexibility of allocating 10% solely for house loans
- The amendment to the definition of house loans – allowing an optionable approach to renovation loans – personal unsecured or house loan secured, without a requirement for a first legal charge
- The amendment of the definition on commercial/business loans – it now mirrors the definition in 2015 SME Regulations (as amended)
- Amendment of definition of a secured loan and the decision for further guidance on “security” as opposed to hardcoding this in Regulations.
The next step is ministerial sign off. Once this process is completed, we will have a definitive time line for the commencement of the Regulations