HDB Concessionary Loans for First-Time Home Buyers

Mr Zainudin Nordin asked the Minister for National Development since the scheme on bank origination of HDB market rate loans started from 1 January 2003 (a) how many first-time HDB home buyers did not use the subsidised HDB concessionary loans to finance their purchase; (b) what are the reasons for these first-time home buyers not using the HDB subsidised loans; (c) how many of these buyers are in arrears with their banks; and (d) how many of these buyers had their flats repossessed by the banks and/or HDB.

Page: 629

Mr Khaw Boon Wan: Since 2003, 14,180 first-time home buyers took up commercial bank loans for their mortgages. They constitute about 12% of all first-time home buyers who took up loans to buy their HDB flats.

HDB has not surveyed these home buyers on the reasons behind their choice of loan. Neither do we have information on the arrears data.

Among these 14,180 first-time buyers who took bank loans, 497 or 3.5% have had their flats repossessed by the banks.