Use of Cash for Payment of HDB Mortgages

Mr David Ong asked the Minister for National Development (a) for 2010 and 2011, what is the number of Singaporeans who have to use cash to service their monthly HDB mortgage repayments when their total amount of CPF withdrawals have exceeded their flats' valuation limits and they cannot tap on their CPF Ordinary Account savings; (b) whether such cases are trending upwards over the last five years; and (c) what measures does the Ministry have in place for cases of Singaporeans who are unable to use cash to service their monthly HDB mortgage repayments.

Mr Khaw Boon Wan: In the last five years, about 0.2% of CPF members who service their mortgage through CPF have to use cash to pay their monthly instalments because their CPF usage has reached or exceeded the Valuation Limit of their flats. The vast majority do not have a problem servicing their mortgages through CPF.

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For those lessees who face difficulty, HDB has a proactive programme to help them. If their financial problems are temporary, HDB may reduce or defer their mortgage instalments, or work out a revised instalment plan. Where necessary, HDB will also refer these lessees to the Community Development Councils for employment or financial aid, or other forms of social support.

For those who require long-term solutions, HDB will help them explore the options. For example, they can include their children to help them pay for the housing loan. They may also consider moving to a smaller flat, with another HDB loan. In some cases, they may be offered a subsidised rental flat.