Success Rate of Self-employed Applicants for HDB Loans

63 Ms Nadia Ahmad Samdin asked the Minister for National Development (a) what is the number of self-employed applicants who have successfully obtained HDB loans within the last three years versus the total number of self-employed applicants who have been rejected; and (b) whether HDB can consider some other factors besides CPF contributions for the application of HDB loans, such as a record of consistency in their work, or dedicated savings which have been amassed.

Mr Desmond Lee: About 18,000 self-employed applicants applied for the HDB Loan Eligibility or HDB Flat Eligibility letter between 1 January 2020 and 31 August 2023, of whom about 13,000 were successful and 5,000 were unsuccessful.

In assessing applications for HDB housing loans, HDB considers factors besides CPF contributions, such as job stability and monthly cash savings. Other factors that are considered include the applicant’s age, monthly income, current loans and financial commitments and past repayment records. The prevailing mortgage financing rules, such as a maximum loan tenure of 25 years, Loan-To-Value limit of 80%, mortgage servicing ratio of 30% and interest rate floor of 3% per annum to compute the eligible loan amount, will also apply.

We encourage all flat buyers to be prudent in borrowing, as purchasing a flat is a long-term financial commitment.