1 in 5 HDB loan applicants asked for larger loans: MND

The Housing and Development Board (HDB) approved 200,000 applications for an HDB Loan Eligibility letter between 2012 and 2015 and of these, one in five, or 40,000, appealed for a larger housing loan.

Appellants generally asked for a larger loan so they could widen their flat choices, without specifying a loan quantum, Minister for National Development Lawrence Wong said in a written parliamentary reply to Non-Constituency Member of Parliament Leon Perera on Tuesday (Mar 1).

“Over one in three of such appeals were successful,” said Mr Wong, adding that HDB was unable to accede to the rest of the appeals as the applicants were unable to provide evidence of their ability to service the bigger loan.

“As a flat purchase is a long-term financial commitment, it would not be prudent for potential home-buyers to take on additional financial burdens that they are unable to sustain,” the minister said.

Source : Channel NewsAsia – 1 Mar 2016

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