Debated in Parliament on 9 Jan 2023.
Mr Zhulkarnain Abdul Rahim asked the Minister for National Development in cases where a young adult's name is included in their elderly parents' HDB loan application, whether HDB will consider setting policies or requirements whereby such loans will not count towards the loan of the adult children, especially when the circumstances of the initial housing loan are for compassionate and financial reasons.
The Housing and Development Board (HDB) provides up to two housing loans to eligible Singapore Citizen (SC) households, subject to credit assessment and the prevailing mortgage loan criteria. This is generally sufficient to meet the needs of most flat buyers, including cases where a young adult's name may have been included in their elderly parents' HDB loan application. Beyond these two loans from HDB, households who require another housing loan may seek financing from the financial institutions regulated by the Monetary Authority of Singapore.
As an HDB housing loan is intended to help flat buyers finance their home purchase and each of their incomes is considered in HDB's credit assessment to derive the eligible loan amount, all flat buyers are considered to have taken the housing loan once it is disbursed.
Nevertheless, for those who have already taken two HDB housing loans, HDB does exercise flexibility on a case-by-case basis, to provide another HDB housing loan for those who have exhausted their financing options and are in urgent need of housing. These flat buyers are advised to approach HDB for assistance.
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