Taking a 3rd HDB loan? Pay market rate, says Khaw

The Housing and Developmental Board (HDB) may grant a third housing loan to home owners – but only in exceptional instances, and at the market rate, said Minister for National Development Khaw Boon Wan on Tuesday (Jan 21).

In a Parliamentary question, MP Zainal Sapari had asked about HDB’s rationale for imposing a higher interest rate for home owners who take a third housing loan. In response, Mr Khaw said HDB will grant a third loan only under exceptional circumstances.

“Typically, this is for those who are in urgent need of housing, but due to poor credit records, are unable to secure a bank loan even though they have a steady income. Providing a third housing loan at a higher rate is to discourage churning of resale flats,” he added.

However, HDB may help with a concessionary rate loan for genuine hardship cases that merit such consideration, he said.

HDB currently provides up to two concessionary rate loans to eligible flat buyers, with interest rate at below market rates over the long term.

Source : Channel NewsAsia – 21 Jan 2015

Join The Discussion

Compare listings