HDB further extends suspension of late payment charges on mortgage arrears

HDB further extends suspension of late payment charges on mortgage arrears

The Housing and Development Board (HDB) will further extend the suspension of late payment charges on HDB mortgage arrears to Mar 31 next year, to help cushion the impact of COVID-19, said National Development Minister Desmond Lee on Thursday (Oct 1).

HDB suspended late payment charges on mortgage arrears for three months in April, then extended it to Sep 30.

In a Facebook post, Mr Lee said that economic conditions are expected to remain challenging for some time.

“The COVID-19 pandemic has had a serious impact on our economy, and affected many people’s jobs and livelihoods. The economic situation is likely to remain difficult for some time.

“Because of this, some households are struggling to cope with their housing mortgage repayments,” he said.

Between April and August, about 2,500 households took up financial assistance offered by HDB, such as deferring their loan instalments or reducing the amount they have to pay in each instalment, said Mr Lee.

From Monday, households on HDB loans can also extend their loan repayment period up to age of 65 if they need long-term adjustments to their cash flow, he said.

The loan tenure for new HDB flats is currently capped at 25 years.

“Those facing difficulties with their arrears should approach HDB to work out their repayment options,” Mr Lee added.

Additionally, households living in HDB rental flats will get a 50 per cent rent rebate for three months between October and December. Late payment charges on rents will continue to be suspended until Mar 31 next year.

“We will continue to monitor the situation closely and review our measures to support households with financial difficulties,” said Mr Lee.

He added that the Monetary Authority of Singapore (MAS) will “soon” announce support measures for HDB flat owners who are on bank loans.

Source: CNA – 1 Oct 2020