Financial Counselling for Vulnerable Households

Ms Foo Mee Har asked the Minister for National Development whether HDB will institute a formal financial counselling process targeted at vulnerable households to help educate them against unwittingly encashing their equity in their HDB homes and risk becoming homeless.

Yes. We have HDB Housing Counsellors in the branches who provide financial counselling and proactively help flat owners in mortgage arrears or financial difficulty by proposing solutions to their circumstances. If the financial difficulty is temporary, HDB will work out short-term measures, such as reducing or deferring their instalments, or an instalment plan to resolve their arrears. HDB also works closely with other social agencies, such as the Family Service Centres or Social Service Offices, to help flat owners who need employment, financial or social assistance.

For flat owners who can no longer afford to keep their flats, HDB will explore more permanent solutions, such as helping them move to a smaller flat.

For flat owners who want to sell their flat in the open market, we require them to go through the HDB Resale Checklist. This will alert them to carefully plan for their next accommodation and work out their finances before proceeding with the resale transaction.

Flat owners should engage HDB early and exercise responsibility in resolving their difficulty. They should not resort to quick-fix solutions like encashing their flats. Such solutions create new problems which are often even harder to resolve.

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Meanwhile, HDB continues to conduct regular public talks and resale seminars to educate the public on financial responsibility and prudence in housing choices.