Statistics on HDB Home Loan Arrears from 2015 to 2017
Ministry of National DevelopmentSpeakers
Summary
This question concerns statistics and assistance for HDB home loan arrears between 2015 and 2017, as raised by Ms Joan Pereira. Minister for National Development Lawrence Wong reported that about 32,000 households experienced arrears of three months or more, with most owners aged 41 and above. Common causes included income drops and illness, though 57% of these cases were resolved by the end of 2017 through HDB's intervention. Minister for National Development Lawrence Wong highlighted measures like financial counselling, instalment deferments, and referrals to agencies for employment or social aid. Long-term strategies include right-sizing to smaller flats or including adult children as joint owners to ensure sustainable mortgage repayments.
Transcript
5 Ms Joan Pereira asked the Minister for National Development over the last three years (a) how many HDB home owners have been in arrears or have defaulted on their HDB home loans and what are their age groups; (b) what percentage of these cases have been resolved; and (c) what are the three most common reasons for the default or arrears.
Mr Lawrence Wong: Over the last three years, of a total of about 405,000 households with outstanding Housing and Development Board (HDB) loans, about 32,000 households (or 7.9%) were ever in mortgage arrears of three months or more.
Of these 32,000 households, almost half are in the 41-55 age group (based on the age of the oldest owner). Another 38% are above 55, and the rest are in the 21-40 age bracket.
At the end of 2017, 57% of these households (about 18,200) were no longer in mortgage arrears of three months or more.
Common reasons why households fall into mortgage arrears include a drop in the household income, prolonged unemployment or illnesses.
To help households in mortgage arrears, HDB provides financial counselling and refers the household to agencies that can assist with employment, financial aid and social support. If the household’s financial problems are temporary, HDB can help by reducing or deferring their mortgage instalment payments to ease their cash flow.
For owners in prolonged financial difficulty, HDB will also help them explore long-term solutions. For example, they may include working adult children as joint owners to help with the mortgage instalments, or right-size to a flat within their means.