Studio Apartments are targeted at senior citizens who are looking to “right-size”, so they can purchase the flats with their sales proceeds and there is no need for a housing loan, said National Development Minister Khaw Boon Wan in Parliament on Tuesday (Aug 18).
Mr Khaw said this in reply a question by MP Gan Thiam Poh, who asked if HDB will consider offering a HDB loan to senior citizens looking to buy a Studio Apartment. He also asked if personal guarantees can be offered and for loans to be serviced by the seniors’ children.
To this, the minister said HDB does not accept guarantor arrangements in offering housing loans.
“This is for prudence, and to pre-empt disputes between the owner and the guarantor in the event of default on the housing loan,” he said.
Source : Channel NewsAsia – 18 Aug 2015