DEFERMENT OF HDB LOAN REPAYMENT

Mr S. Vasoo asked the Minister for National Development if he will outline the steps which Housing and Development Board home-owners, who are facing difficulties in their housing loan repayment, can take to defer their loan repayment schedules.

Mr Teh Cheang Wan: Mr Speaker, Sir, HDB home buyers who are facing difficulties in their housing loan repayment can arrange with the HDB to:

a) extend the maximum loan repayment period to 25 years;

b) make partial payment of monthly instalments temporarily and repay the arrears in subsequent instalments if the home buyers are in financial hardship;

c) include another family member as joint owners of the flat so that his/her CPF contribution can also be used to pay the monthly instalment;

d) sublet a room to supplement the family income;

e) defer the instalment payment temporarily if the home buyers have lost their jobs or suffered business failures and the CPF Accounts are depleted.

The drop in the HDB mortgage rate announced recently will also help to reduce the financial burden on the home buyers.

Mr S. Vasoo (Bo Wen): Mr Speaker, Sir, if they have lost their job and are unable to obtain another job, how long would this deferment be allowed?

Mr Teh Cheang Wan: HDB will normally allow a deferment of six months initially and this can be further extended. But usually those who lost their jobs are able to find another job within six months. But if they cannot find a suitable job, HDB is prepared to extend beyond six months.

Mr Jeyaretnam: May I ask the Minister whether in the cases of deferment of payments, interest will cease to run or whether interest will also be suspended?

Mr Teh Cheang Wan: Mr Speaker, Sir, the repayment will be suspended but not the interest.

Mr Chiam See Tong: Mr Speaker, Sir, please allow me to continue from where I left off in the last question

Mr Speaker: The last question has been dealt with, Mr Chiam.

Mr Chiam See Tong: Because the Minister said that he was going to answer the Member for Bo Wen. I asked whether or not last year's tender prices have dropped.

Mr Speaker: I am sorry. Next question, Encik Wan Hussin.