Oral Answer by Ministry of National Development on second or third-time buyers of HDB flats taking HDB loans

Mar 14, 2016

Mr Saktiandi Supaat: To ask the Minister for National Development 

(a) whether HDB will allow second or third-time buyers of HDB flats to take HDB loans if they cannot qualify to borrow from the banks; and 

(b) whether the Ministry will consider reviewing this policy to help this group. 

Answer: 

HDB offers all buyers of HDB flats up to two concessionary loans. This is generally sufficient to meet the life cycle needs of buyers. The limit of two concessionary loans also helps to ensure the stability of the resale market by preventing excessive churning of HDB flats.

Nevertheless, HDB does exercise flexibility to assist households with a third HDB housing loan on a case-by-case basis. Typically, these are households that require urgent assistance, but are unable to secure mortgage financing from banks. The households that receive this third loan are required to have sufficient savings and steady incomes to service the loan. This credit assessment is important to ensure that households do not end up taking on more debt than they are able to afford.

Issued by: Ministry of National Development
Date         : 14 March 2016