Third housing loan for exceptional cases only: HDB

Muneerah 23 Jan 2015

The Housing Board will only provide a third housing loan under exceptional circumstances, according to Minister for National Development Khaw Boon Wan in written response to a recent parliamentary inquiry.

However, the interest rate for the third mortgage will be higher than HDB’s concessionary rate loans as it will be based on market rates.

“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,” said Khaw.

Nevertheless, HDB may offer a third mortgage with a concessionary interest rate for home buyers undergoing genuine hardship, if the case merits such consideration.

Asked on why the third housing loan comes with a higher interest rate, he explained that it aims “to discourage churning of resale flats”.

Notably, the government grants a maximum of two concessionary rate loans to qualified home buyers at below-market interest rates over the long term.


Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email



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