HDB FLAT MORTGAGES

HDB FLAT MORTGAGES: **

(Foreclosure by banks): **

20.

Mr Siew Kum Hong asked the Minister for National Development, for each year from 2003 to 2006 (a) how many new and resale HDB flats were purchased using bank loans; (b) how many HDB mortgages were foreclosed by banks; and (c) of these cases of foreclosure, (i) what was the average period for which the debtors were in default before foreclosure; (ii) what was the average quantum of the outstanding loan at the time of foreclosure; and (iii) what was the average original purchase price of the flat.

Mr Mah Bow Tan: From 2003 to 2006, there were about 89,000* HDB flats financed with bank loans.

Column: 1453

As at 31st December 2006, the banks completed the mortgagee sale for 895 cases. This works out to about 1% of the 89,000 HDB flats financed with bank loans.

We do not have information on the average period of default by borrowers before the banks foreclose on the loans. However, we understand that banks normally monitor closely Non-Performing Loans where no payment has been made for more than 90 days. They would offer to reschedule repayments or other assistance measures when borrowers are facing difficulty servicing their loan instalments.

1 78,000 new and resale flats were purchased with bank loans while the remaining 11,000 were ex-HDB loans refinanced with bank loans.

Column: 1453