Flat owners struggling to repay their HDB loan can request a deferment in payment.
The Housing and Development Board (HDB) offers different types of assistance to flat owners who are struggling to repay their HDB loan due to financial problems, like the loss of a job, revealed Minister of State for National Development Koh Poh Koon in Parliament on Wednesday (6 April), reported The Straits Times.
These include a temporary reduction in their monthly instalments or a deferment in payment. The HDB may also provide financial counselling or refer them to social support agencies so that they can receive financial aid, or make it easier to find employment.
Dr Koh was replying to Joan Pereira, MP for Tanjong Pagar GRC, who asked about how the agency provides support to people who are laid off, especially those in their late 40s and 50s.
“For those who face longer-term hardship, HDB will advise them on measures such as including their working adult children as joint owners to help with the mortgage payments,” he said.
Another option is for the owner to move into a smaller unit to reduce their monthly loan payments.
“For low-income households who are unable to afford another flat, have no family support and no other housing options, the HDB may offer them a public rental flat.”
Dr Koh added that the agency cannot provide personal loans to flat owners who have taken out mortgages from banks, but it can help them restructure their finances.
Separately, Senior Minister of State for National Development, Desmond Lee, highlighted that the three town councils with the highest number of flats eligible for the Home Improvement Programme are Nee Soon, Jurong-Clementi and Aljunied-Hougang.
To qualify for this scheme, the flats must be built up to 1986 and not undergone the Main Upgrading Programme.
The HDB plans to complete the selection of eligible flats by FY2018, added Lee.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
