HDB extends suspension of late payment charges on mortgage arrears; 50% rebate on rental flat payments for 3 months

SINGAPORE  — The Housing and Development Board (HDB) will extend its suspension of late payment charges on HDB mortgage arrears to March 31, 2021, to help households cope with the economic impact of the Covid-19 pandemic, National Development Minister Desmond Lee said on Thursday (Oct 1).

This is the second time that the suspension has been extended. HDB first suspended late payment charges on April 1 for three months, then extended the suspension to Sept 30.

And from Oct 5, those on HDB loans can also extend their loan repayment period up to age 65 if they need long-term adjustments to their cash flow, Mr Lee said in a Facebook post. 

Currently, the tenure for HDB loans is capped at 25 years.

Those facing difficulties with their arrears should approach HDB to work out their repayment options, he added.

Mr Lee said HDB will also help households living in public rental flats by providing a 50 per cent rent rebate for three months, from Oct 1 to Dec 31. HDB will also continue to suspend late payment charges on rent payments on these flats until the end of March next year.

From April to August, about 2,500 households took up financial assistance measures offered by HDB, such as deferring their loan instalments, or reducing how much they had to pay in each instalment, Mr Lee said.

“The Covid-19 pandemic has had a serious impact on our economy, and affected many people’s jobs and livelihoods,” he wrote. 

“The economic situation is likely to remain difficult for some time. Because of this, some households are struggling to cope with their housing mortgage repayments.”

The Ministry of National Development will continue to monitor the situation closely and review its measures to support households with financial difficulties, Mr Lee said. 

For HDB flat owners who are on bank loans, the Monetary Authority of Singapore will be announcing support measures soon, he added.