HDB LOANS

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HDB LOANS

7.

Mr Steve Chia Kiah Hong asked the Minister for National Development whether the 0.1% administrative charge which HDB levies on its HDB loans can be lowered since the outstandling loans of S$64 billion as at 2002 yield HDB a tidy levy revenue of S$64 million.

Mr Mah Bow Tan: HDB charges a 0.1% administrative fee for its loans to cover the costs, such as costs of manpower and computer systems, incurred in managing its mortgage loan accounts.

At 0.1%, the administrative fee that HDB charges is lower than what banks charge to service their mortgage loans. As the current fee is reasonable, there are no plans to lower it at this juncture.