HOUSING AND DEVELOPMENT BOARD FLATS

HOUSING AND DEVELOPMENT BOARD FLATS

**

(Monthly loan repayments): **

24.

Mr Chiam See Tong asked the Minister for National Development (a) what is the percentage of HDB flat dwellers over the age of 60 years old who have had difficulties with their monthly loan repayments between the years 2003 and September 2006; and (b) if his Ministry will consider extending the loan repayment period for those who have difficulty paying their monthly loan repayments.

Mr Mah Bow Tan: The majority of HDB households whose youngest lessee is above 60 years old have no outstanding home loan. Only about 1% [1,037 cases] of these elderly households are in arrears of three months or more for their HDB loans*. The percentage has remained largely unchanged in the last three years.

*HDB does not have data on arrears cases for bank loans.

Column: 1077

Under HDB's mortgage financing policy, the maximum loan repayment period that HDB grants to its mortgagors is 30 years, subject to a 65-year age limit. It is not to the benefit of mortgagors for HDB to extend the loan repayment period beyond this. First, mortgagors will incur additional interest costs for longer repayment periods. Secondly, it will be increasingly difficult for those above 65 to service a mortgage loan, as they will also need to cater for their retirement needs.

To help mortgagors tide over temporary periods of financial hardship, HDB has in place several financial assistance measures. For example, Under the Reduced Repayment Scheme (RRS), mortgagors are allowed to make repayments ranging from 50% to 75% of their current instalments. HDB has no plans to extend the maximum loan repayment period.

Column: 1077