Debated in Parliament on 4 Mar 2021.
Ms Carrie Tan asked the Minister for National Development (a) how many appeals does HDB receive each year for reduction of the minimum occupation period due to changes in homeowners’ income situations and need to downsize before five years is up; (b) whether there is an upward trend in 2020 due to loss of jobs and income; and (c) whether there are any efforts by HDB to provide financial counselling to young couples when they apply for their first flat.
In both 2019 and 2020, HDB gave approval to about 260 households per year to sell their flat within their MOP, due to financial or medical reasons. Hence, no upward spike was observed in 2020 specifically. HDB will assist flat owners who face financial difficulties and need to right-size to a smaller flat during their MOP, and it does not actively track the number of unique appeals.
Flat buyers who wish to take up an HDB housing loan are required to apply for an HDB Loan Eligibility letter. This process will help them to plan their finances for the flat purchase. For buyers who require further guidance on their housing options, HDB conducts financial counselling to advise and work out their budgets based on the estimated HDB housing loan amount available to them. HDB also works with tertiary institutions and other agencies to reach out to prospective buyers and provide them with information to guide their housing and financing decisions.
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