Long term measures to help HDB mortgage defaulters is best solution

Long term measures to help HDB mortgage defaulters is best solution

By Cheryl Lim Mei Ling,

SINGAPORE : The Housing and Development Board (HDB) will continue to keep tabs on flat owners who default on their HDB mortgage payments.

It stressed that long term measures to help these owners manage their mortgage payment is the best solution, and that compulsory acquisition of the flat is a last resort.

As of October 2008, some 33,000 flat owners owed HDB arrears of three months or more. They make up less than 8 per cent of the 420,000 households with outstanding HDB loans.

Giving this update in Parliament on Tuesday, Parliamentary Secretary for National Development Mohamad Maliki Osman said home owners should buy within their means.

But he recognised that there are some who are affected by the economic downturn and one option for them is to downgrade to a smaller unit.

More 2 and 3-room HDB flats will be coming on stream next year to cope with the growing demand for smaller flats.

Dr Maliki also said heavily subsidised rental flats should be given to those who are in dire need. - CNA /ls

Source : Channel Newsasia - 18 Nov 2008

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