Debated in Parliament on 25 Feb 2013.
Ms Foo Mee Har asked the Minister for National Development (a) what are the number and percentage of HDB flat owners with arrears in their monthly loan instalments for each of the last three years; (b) what are the financial assistance schemes available to help these flat owners; and (c) what are the reasons behind the flat owners' financial difficulties.
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The proportion of households with HDB loans in mortgage arrears of three months or more has steadily decreased over the past three years – from 6.0% (22,900 cases) at the end of 2010, to 5.6% (20,400 cases) in 2011, and 5.2% (18,000 cases) in 2012.
These flat owners could have fallen into arrears because they over-stretched their finances, or suffered a reduction in income due to loss of job or illness.
HDB's Housing Counsellors in the Branches provide financial counselling and proactively help owners in mortgage arrears by tailoring solutions to their circumstances.
For flat owners in temporary financial difficulty, HDB will work out short-term measures, such as reducing or deferring their mortgage instalments for a period of time, or working out an instalment plan to repay their arrears. HDB may also advise flat owners with spare bedrooms to sublet the rooms for additional income, or refer them to Community Development Councils for employment, financial or social assistance.
For flat owners who can no longer afford to keep their flats, HDB will help them explore longer-term solutions. For example, they can include their children as joint owners to help service the loan. They can also consider selling the flat and moving to a smaller one. If necessary, HDB can offer them another loan to buy a smaller flat.
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