HDB has extended the late payment charges for mortgage arrears to 31 March 2021 to help Singaporeans cope with the impact of COVID-19.
HDB has extended the late payment charges for mortgage arrears to 31 March 2021 to help Singaporeans cope with the impact of COVID-19, reported Channel News Asia (CNA) citing National Development Minister Desmond Lee.
In a Facebook post, Lee noted that Singapore’s economic situation will likely remain challenging for some time due to COVID-19.
“The COVID-19 pandemic has had a serious impact on our economy, and affected many people’s jobs and livelihoods,” he said as quoted by CNA.
“Because of this, some households are struggling to cope with their housing mortgage repayments.”
Late payment charges on mortgage arrears was first suspended by HDB for three months in April, before extending it to 30 September.
Lee revealed that around 2,500 households availed of the financial assistance offered by HDB, like deferring their loan instalments or lowering the amount for each of their instalment payments.
He added those on HDB loans can also have their repayment period extended up to age 65 from Monday should they require long-term adjustments to their cash flow.
Currently, the loan tenure for new HDB flats is capped at 25 years.
“Those facing difficulties with their arrears should approach HDB to work out their repayment options,” said Lee.
Meanwhile, household staying in HDB rental flats will receive a 50% rebate for three months from October to December, while late payment charges on rents will also be suspended until 31 March 2021.
“We will continue to monitor the situation closely and review our measures to support households with financial difficulties,” said Lee.
He also revealed that support measures for HDB homeowners who are on bank loans will “soon” be announced by the Monetary Authority of Singapore (MAS).
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com