Written Answer by Ministry of National Development on Lease Buyback Scheme applicants with outstanding mortgage loans
Sep 3, 2019
Mr Gan Thiam Poh: To ask the Minister for National Development:
(a) since the introduction of the Lease Buyback Scheme, how many appeals have been received from HDB flat owners who wish to apply for the scheme but have yet to fully pay up for the housing loan due to financial hardship;
(b) how many of such appeals have been granted on compassionate grounds; and
(c) whether the Ministry will change the rule for such applicants.
Answer:
When the Lease Buyback Scheme (LBS) was first introduced in Mar 2009, HDB flat owners had to have an outstanding mortgage loan of no more than $5,000 to be eligible.
Since Feb 2013, we have relaxed this requirement and allowed flat owners with outstanding mortgage loans of more than $5,000 to take up the LBS, as long as the proceeds from the lease sale is sufficient to fully discharge the loan.