Inclusion of Adult Children's Names in Elderly Parents' HDB Loan Applications for Compassionate Reasons
Ministry of National DevelopmentSpeakers
Summary
This question concerns whether young adults’ names included in their elderly parents’ HDB loan applications for compassionate reasons can be excluded from their personal loan limits. Minister for National Development Desmond Lee stated that HDB provides up to two housing loans per household, and all listed buyers are deemed to have utilized a loan. He explained that because each buyer's income contributes to the credit assessment for the loan amount, the disbursement counts against the eligibility of all parties involved. While those needing more financing can approach regulated financial institutions, HDB exercises flexibility on a case-by-case basis for those who have exhausted their two-loan limit. Specifically, HDB may grant an additional loan to individuals in urgent need of housing and invites those in such circumstances to approach the board for assistance.
Transcript
82 Mr Zhulkarnain Abdul Rahim asked the Minister for National Development in cases where a young adult's name is included in their elderly parents' HDB loan application, whether HDB will consider setting policies or requirements whereby such loans will not count towards the loan of the adult children, especially when the circumstances of the initial housing loan are for compassionate and financial reasons.
Mr Desmond Lee: The Housing and Development Board (HDB) provides up to two housing loans to eligible Singapore Citizen (SC) households, subject to credit assessment and the prevailing mortgage loan criteria. This is generally sufficient to meet the needs of most flat buyers, including cases where a young adult's name may have been included in their elderly parents' HDB loan application. Beyond these two loans from HDB, households who require another housing loan may seek financing from the financial institutions regulated by the Monetary Authority of Singapore.
As an HDB housing loan is intended to help flat buyers finance their home purchase and each of their incomes is considered in HDB's credit assessment to derive the eligible loan amount, all flat buyers are considered to have taken the housing loan once it is disbursed.
Nevertheless, for those who have already taken two HDB housing loans, HDB does exercise flexibility on a case-by-case basis, to provide another HDB housing loan for those who have exhausted their financing options and are in urgent need of housing. These flat buyers are advised to approach HDB for assistance.