Debated in Parliament on 1 Oct 2018.
Mr Kwek Hian Chuan Henry asked the Minister for National Development whether HDB flat applicants are given detailed advice on their eligibility for an HDB loan, including the appropriate quantum, to ensure that applicants will not over-commit and be unable to secure a loan after being successfully allocated the flat.
New flat buyers who wish to take up a Housing and Development Board (HDB) housing loan are required to apply for an HDB Loan Eligibility (HLE) letter before they book a flat. The HLE letter provides them with useful information for financial planning, such as the loan amount, interest rate, repayment period and monthly instalment payable.
During the flat booking appointment, HDB conducts financial counselling to help home buyers understand the costs involved in their flat purchase, the different financing options, for instance, how they can finance the flat by using their Central Provident Fund (CPF) savings, housing loan and/or cash, and the implications of these options.
HDB will continue to remind home seekers to exercise financial prudence and buy a flat within their budget.
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