Written answer by Ministry of National Development on rational for discrepancy in HDB’s treatment of occupier’s income in determining housing grant quantum

Jul 2, 2024

Question No: 5925

Question by: Mr Chua Kheng Wee Louis

To ask the Minister for National Development what is the rationale for the discrepancy in considering an occupier’s income in the HDB’s assessment of household income for the purposes of purchasing a HDB flat and in determining the quantum of housing grant provided, but not in the credit assessment for a HDB housing loan.

Answer:

In assessing household income to determine eligibility for housing subsidies, including the quantum of the means-tested Enhanced CPF Housing Grant that the household may be eligible for, HDB considers the income of all household members, regardless of whether they are applicants or occupiers. This ensures that housing subsidies are prioritised for households who need them the most.

On the other hand, in determining the loan quantum that HDB can extend to eligible flat buyers, HDB only considers flat buyers’ incomes because they will be the borrowers of the loan and will need to service the mortgage loan. Conversely, occupiers are not the borrowers and hence, their incomes are not considered.