• I am facing difficulties repaying my HDB loan. How can HDB help me?

    If home owners fall into arrears due to financial difficulty, we can work with them to find a suitable solution, based on their specific needs and circumstances and be financially sustainable for the household.

    Financially sustainable solution

    The range of solutions could be short-term measures that help to reduce or defer the loan instalments temporarily, till their financial situation improves.

    For households who no longer have the means to keep their flats, they would need long-term solutions, such as right-sizing to a smaller and more affordable flat. We also offer rental flats to eligible households who have no other housing options.

    Support and responsibility

    Sometimes, the problem goes beyond a housing issue. We work with government agencies and welfare groups that offer social and financial support services to help flat owners in financial difficulty address their problems holistically. Home owners who also take personal responsibility in resolving their financial problems often fare better.

    Approach HDB early on loan arrears

    If you start to face difficulty repaying your HDB loan instalments, do approach HDB early. Our team of financially trained Housing Counsellors at all HDB Branches can help work out possible solutions with you.

    Example 1: Housing Counsellors facilitate right-sizing of flat

    Mdm Priya previously owned a SERS flat in a mature estate with her husband. When her husband fell ill and subsequently passed on, she had difficulty meeting her monthly mortgage instalments, on top of footing her late husband’s medical bills.

    After understanding Mdm Priya’s situation, our Housing Counsellor suggested that she consider buying a cheaper flat with the help of the SERS Grant, Additional Housing Grant and Special Housing Grant. This would reduce her financial commitments.

    With a total of $85,000 in housing grants, Mdm Priya eventually bought a 3-room flat in a non-mature estate. Not only was she able to fully pay for the flat without taking a loan, she also had sufficient money for her renovation and living expenses.


    Example 2: Housing Counsellors facilitate right-sizing of flat

    Mdm Lee bought a 3-room flat in 2001 as a sole owner. When her income fell, she accumulated arrears which worsened when she undertook payment for the medical treatment of a relative diagnosed kidney failure. This led to her repeatedly defaulting on the mortgage payment. At its highest, the mortgage arrears were about $27,000.

    Our Housing Counsellor met up with her over several sessions to understand her situation and how best to help. Working with her, our Housing Counsellor assisted her to right-size to a smaller flat – a new 2-room flexi flat (on short lease) in the same estate, so that her relative can continue to receive medical treatment without travelling a longer distance. Mdm Lee was also able to pay off the bulk of her debts, with cash proceeds received from her previous flat. She has since collected the keys to her new flat in February 2017.

    Home Owners in Arrears