HDB extends suspension of late payment charges on mortgage, public rental arrears to Sept 30

SINGAPORE — The Housing and Development Board (HDB) will extend its suspension of late payment charges on HDB mortgage and public rental arrears for another six months to Sept 30, to further help Singaporean households facing difficult financial situations due to the economic impact of Covid-19.

The suspension of the late payment charges was supposed to end on March 31.

The charges were first suspended on April 1 last year for three months, then extended another three months, followed by yet another six-month extension until March 31. 

In a Facebook post on Monday (April 12), Associate Professor Muhammad Faishal Ibrahim said that while the authorities are seeing positive signs in the economy and job market, some Singaporean households continue to face “uncertain or difficult financial situations due to Covid-19’s economic impact”.

The Minister of State for National Development added: “The extension of the (late payment charges’) suspension is to help these households tide through (the crisis), in line with the Government’s approach to provide targeted support to households in need.” 

He also said that HDB has other measures to help homeowners who had taken up HDB housing loans as well as tenants who rent public flats and who have difficulties coping with their mortgage or rent payments.

“These include deferred or reduced repayment schemes and extension of loan tenure to reduce the monthly instalments,” said Assoc Prof Faishal.

From April 2020 to March this year, more than 5,200 households have taken up the financial assistance measures offered by HDB. And during the same period, HDB also reduced the rent for about 4,000 households.

Assoc Prof Faishal stressed that those who have difficulties coping with their mortgage or rent payment should contact their HDB branch office for help.

“For those on bank loans, (the Monetary Authority of Singapore) and financial institutions have introduced the Extended Support Scheme to help individuals facing cash flow difficulties transition gradually to full loan payments,” he said.