Freelancers and Self-employed Face Higher Barriers when Applying for HDB Housing Loan

Mr Ong Teng Koon asked the Minister for National Development (a) whether freelancers and the self-employed face higher barriers when applying for a HDB housing loan compared to salaried workers due to the volatility of their income; and (b) if so, what can the Ministry do to promote the Government's objectives of entrepreneurship and promoting flexibility in the labour market by mitigating the impact of this income volatility.

Mr Lawrence Wong: HDB's credit assessment process is designed to assess the financial ability of prospective flat buyers for prudent and long-term sustainable homeownership. Regardless of the nature of the loan applicants' employment, the maximum loan amount is determined based on the applicants' average monthly income.

To ensure a fair assessment of the applicants' income, HDB may require applicants with more variable income to submit documentary proof, or to be credit assessed over a longer period.

For those who have difficulty meeting these requirements, HDB will look into their individual circumstances and exercise flexibility where possible, to help them attain homeownership.