Mortgage Assistance Plan for Retrenched Flat Owners
Ministry of National DevelopmentSpeakers
Summary
This question concerns mortgage assistance for retrenched flat owners in their 40s and 50s, particularly when both spouses lose their jobs simultaneously. Ms Joan Pereira inquired about available HDB support measures and whether financial assistance extends to owners with bank loans. Minister of State Koh Poh Koon stated that HDB provides financial counselling, refers owners to social support agencies, and offers temporary mortgage instalment reductions or deferments. Long-term solutions include adding working adult children as joint owners, right-sizing to flats within owners' means, or providing public rental housing for those without family support. Finally, he clarified that while HDB assists with restructuring its own loans and social referrals, it cannot provide personal loans to cover bank mortgage defaults.
Transcript
2 Ms Joan Pereira asked the Minister for National Development what assistance plans does HDB have in place with regard to mortgage payments by those in their late 40s or 50s who have been retrenched, particularly where the husband and wife both lose their jobs at the same time.
The Minister of State for National Development (Dr Koh Poh Koon) (for the Minister for National Development): Mdm Speaker, HDB has various assistance measures to help families who have fallen on hard times. As a first step, Housing Counsellors in HDB branches provide financial counselling and explore sustainable housing options with the flat owners, for example, by subletting their spare bedrooms. The Housing Counsellors in the branches may also refer them to social support agencies for job placements, financial aid, for example, at the Employment & Employability Institute (e2i), Social Service Offices (SSOs) and Family Service Centres (FSCs).
Flat owners who face short-term difficulties in servicing their mortgage instalments may be offered a temporary reduction or deferment of their mortgage instalments to help them with their cash flow situation.
For those who face longer term difficulties and hardship, HDB will advise them on measures, such as including their working adult children as joint owners, to help with the mortgage instalments. Another long-term measure is to right-size to a flat within their means. In this situation, HDB may offer them another loan and/or interim rental housing to help with their move. For low-income households who are unable to afford another flat, have no family support and no other housing options, HDB may offer them a public rental flat.
Ms Joan Pereira (Tanjong Pagar): Mdm Speaker, I thank the Minister of State for his reply. I have one supplementary question. Would HDB consider providing such financial help to HDB owners who have taken loans from the banks?
Dr Koh Poh Koon: Mdm Speaker, for flat owners who have financial difficulties, the banks would usually alert HDB when the flat owners start to default on their payments. In general, HDB will assist flat owners who are in difficulties to seek help from social support agencies by recommending that they get a job if they are out of a job, or to provide them with temporary financial support through the SSOs.
HDB, however, is not a bank and is not able to offer personal loans to flat owners, although we can help them with restructuring their HDB mortgage loans.