Mr Ong Teng Koon: To ask the Minister for National Development whether the Ministry will consider extending HDB's deferred downpayment scheme to 4-room and 5-room BTO flats and to applicants with low income.

Answer:

HDB requires new flat buyers to pay a downpayment of 10% or 20% of the flat price when they sign the Agreement for Lease within four months of booking a flat, to ensure that applicants are financially ready to commit to the flat purchase.  The balance flat price is payable when they collect the keys.

Deferred down payment is a scheme for seniors and is meant to facilitate the right-sizing process. Specifically, elderly flat owners aged 55 years and above who are buying an uncompleted 2-room Flexi or 3-room flat from HDB may apply for this Deferred Downpayment Scheme. Separately, HDB also has a Staggered Downpayment Scheme (SDS) where flat buyers are required to pay half of the downpayment when they sign the Agreement for Lease, and pay the other half together with the balance purchase price at key collection. This SDS is available to first-timer young couples below the age of 30. They can qualify for such a scheme when they buy any flat type from the HDB, including 4-room and 5-room flats. The SDS is also available to flat owners right-sizing to a 2-room Flexi or a 3-room flat in non-mature estates, regardless of the age of the flat owner.

Home seekers should continue to exercise financial prudence and buy a flat within their means. For those who face difficulties with their downpayment, HDB can provide assistance on a case by case basis.