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SINGAPORE: The Housing and Development Board (HDB) will further extend the suspension of the late payment fees for HDB’s mortgage arrears until March 31 next year, to help cushion the impact of COVID-19, National Development Minister Desmond Lee said Thursday (Oct. 1). ).
HDB suspended late fees on delinquent mortgages for three months in April and then extended them until September 30.
In a Facebook post, Lee said that economic conditions are expected to remain challenging for some time.
“The COVID-19 pandemic has had a serious impact on our economy, affecting employment and livelihoods for many people. The economic situation is likely to remain difficult for some time.
“Because of this, some households are struggling to cope with home mortgage repayments,” he said.
Between April and August, about 2,500 households accepted financial assistance offered by HDB, such as deferring their loan installments or reducing the amount they have to pay in each installment, Lee said.
Starting Monday, households with HDB loans can also extend their loan repayment period to age 65 if they need long-term adjustments to their cash flow, he said.
The loan tenure for the new HDB flats is currently limited to 25 years.
“Those facing difficulties with their arrears should approach HDB to determine their payment options,” added Lee.
Additionally, households living in HDB rental flats will get a 50% rent discount for three months between October and December. Charges for late payments on rents will continue to be suspended until March 31 of next year.
“We will continue to monitor the situation closely and review our measures to support households in financial distress,” said Mr. Lee.
He added that the Monetary Authority of Singapore (MAS) will announce “soon” support measures for HDB homeowners who have bank loans.
