Oral answer by Ministry of National Development on information required from HDB from a person who is making a housing loan application

Apr 3, 2024

Question No: 5929

Question by: Mr Dennis Tan Lip Fong

To ask the Minister for National Development (a) what is the information on job, business or income which HDB will require from a person who is making a housing loan application and what is the time period required for such information; and (b) whether there is any distinction between the information required for (i) employed persons and (ii) self-employed persons.

Answer:

          HDB conducts credit assessments to gauge the financial ability of loan applicants to service monthly mortgage instalments, based on the applicant’s income. The assessment is carried out when the applicant applies for an HDB Flat Eligibility (HFE) letter, and is based on the applicant’s average monthly income over a period of 12 months. All applicants, regardless of the nature of their employment, are required to provide their CPF contribution history and latest Notice of Assessment for income tax, through Myinfo. HDB will reach out to applicants if further supporting documents are needed.

Unlike employed persons who generally receive monthly CPF contributions from work that can be used to pay mortgage instalments, self-employed persons typically pay their mortgage instalments fully in cash.  Hence, they are required to provide their Credit Bureau Report and bank statements for an assessment of their financial position and their ability to pay their mortgage instalments every month.