Late payments of Housing and Development Board (HDB) mortgages can attract charges of 7.5 per cent per annum.
Since Apr. 2020, however, such charges have been suspended as part of Covid-19 support measures.
The suspension was extended till Sep. 30, 2020, and will be further extended to Mar. 31, 2021, said Minister for National Development Desmond Lee on Oct. 1.
Loan repayment periods can be extended to age 65
Lee also said that flat owners on HDB loans will be able to extend their loan repayment period up to age 65, from Oct. 5.
This would allow households to make smaller monthly payments over a longer period of time.
Currently, the repayment period for a HDB loan is capped at the shortest of the following:
- 25 years
- Up till the buyer is 65 years old
- The remaining lease of the flat at the point of flat application minus 20 years
As for those who have taken bank loans, Lee said that the Monetary Authority of Singapore (MAS) "will be announcing support measures soon."
50 per cent rent rebate for households in public rental flats
A 50 per cent rebate for households living in public rental flats will also be provided, Lee added.
This will last for three months, from Oct. 1, 2020, to Dec. 31, 2020.
Late payment charges on rent payments will similarly be suspended till Mar. 31, 2021.
Financial assistance by HDB
Lee said that around 2,500 households took up financial assistance measures by HB from Apr. to Aug. 2020.
This included deferring loan instalments, or reducing how much they had to pay in each instalment.
Lee said that those who faced difficulties with their arrears should approach HDB "to work out their repayment options."
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Top image via HDB website