Debated in Parliament on 8 Apr 2025.
Mr Gan Thiam Poh asked the Minister for National Development (a) whether the Government has any data on HDB flat owners selling their flats to pay personal debts and thereafter proceeding to obtain a loan from HDB to buy another HDB flat or filing an application for a HDB rental flat; and (b) if so, how many of such cases are there in the last five years.
Housing and Development Board (HDB) flats are meant for long-term owner-occupation and selling one's HDB home is a significant decision. Flat owners are urged to plan responsibly and not rush into selling their flat without a firm plan for their next housing arrangement.
Today, prospective flat sellers need to register an Intent to Sell with HDB and wait out seven days before they may grant an Option to Purchase to prospective flat buyers. The Intent to Sell has various features to encourage them to plan for their next housing before they commit to selling their flat. These include: (a) requiring them to state their next housing arrangement after the sale of their flat; (b) advising them on important policies and procedures to take note of before committing to sell their flat; and (c) supporting them in planning for their next flat purchase by reminding them to apply for an HDB Flat Eligibility letter and use HDB's financial calculators to estimate the net proceeds from the sale of their flat and their budget available for the next flat purchase.
HDB does not have data on flat owners selling their flats to pay off personal debts. For applicants who apply for a second HDB housing loan to buy another flat or apply for public rental flats, HDB takes into account the proceeds that they have received from the sale of their previous property in determining the eligible loan amount or their need for a rental flat.
Flat owners are urged to consider carefully before committing to sell their flat. Those who face difficulties in keeping up with their mortgage instalment payments may approach their HDB Branch for a holistic assessment of their situation and work out the required assistance. Those in other types of debt can ask for assistance from Credit Counselling Singapore.
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