Oral Answer by Ministry of National Development on HDB loans for senior citizens purchasing HDB studio apartments
Aug 18, 2015
Mr Gan Thiam Poh: To ask the Minister for National Development whether HDB will consider granting HDB loans to senior citizens who wish to purchase HDB studio apartments (SA) with personal guarantees and for the loans to be serviced by their children.
Answer:
Studio Apartments (SA) are targeted at elderly home owners who are right-sizing from a larger flat or private property. These buyers can pay for the SAs using their sale proceeds, with balance set aside for their retirement needs. There is no need for a housing loan.
2. In any case, HDB does not accept guarantor arrangements in offering housing loans. This is for prudence, and to pre-empt disputes between the owner and the guarantor in the event of default on the housing loan.