Exploring Short-Term Repayment Freezes on Housing Loans and Insurance Premiums for Unemployed Singaporeans
Ministry of ManpowerSpeakers
Summary
This question concerns MP Mr Kwek Hian Chuan Henry’s inquiry about implementing short-term repayment freezes on housing loans and insurance premiums for unemployed Singaporeans. Minister for Manpower Dr Tan See Leng stated that HDB provides financial counselling and options like temporary instalment deferrals or loan tenure extensions for affected homeowners. For private housing loans and insurance, individuals can approach lenders for restructuring or insurers for premium holidays, premium loans, or conversion to paid-up policies. These options complement the SkillsFuture Jobseeker Support scheme, which offers temporary financial support to involuntarily unemployed individuals while they search for suitable new employment. Minister for Manpower Dr Tan See Leng added that jobseekers from households facing significant financial distress may also be eligible for ComCare's Short-to-Medium Term Assistance scheme.
Transcript
48 Mr Kwek Hian Chuan Henry asked the Minister for Manpower whether the Ministry can work with the MAS to explore implementing short-term repayment freezes on housing loans and insurance premiums for Singaporeans facing unemployment.
Dr Tan See Leng: Unemployed homeowners who face difficulties in servicing their housing loans from the Housing and Development Board (HDB) can approach HDB for financial counselling. HDB may offer various financial assistance measures depending on the household's circumstances, such as allowing them to temporarily reduce or defer their loan instalments or extending their loan tenure to reduce their monthly instalments.
Homeowners who are facing difficulties servicing their private housing loans can approach their lenders to explore options, such as loan restructuring solutions. Government agencies have put in place processes for financial institutions to refer cases to social service agencies for assistance where needed.
Individuals who face difficulties in servicing their insurance premiums can approach their insurers early to find out about available options. Depending on the terms of the policy, options include obtaining premium loans, converting to a paid-up policy and applying a time-bound premium holiday.
These measures will complement the SkillsFuture Jobseeker Support (JS) scheme, which is designed to give assurance to those facing involuntary unemployment by providing them with temporary financial support while they search for a job that fits their skills and experience.
The scheme is not a social assistance scheme and the payout quantum is not sized to meet the needs of households facing financial distress when a household member becomes involuntarily unemployed. For jobseekers from households with financial difficulties, they may be eligible for support from schemes, such as ComCare's Short-to-Medium Term Assistance scheme.