AS SINGAPORE'S economic recession worsens and more jobs are expected to be lost, the Housing Board will roll out a slew of measures to help home owners who fall into default.
National Development Minister Mah Bow Tan elaborated on these measures in Parliament on Friday, assuring MPs that help is at hand.
These HDB initiatives include short-term measures such as letting home owners defer monthly payments for up to six months and reducing the monthly replayments.
In the longer term, HDB officers will provide financial counselling and work out a sustainable solution to solve the home owners financial difficulties, said Mr Mah.
He said in the last recession of 2003, HDB allowed many home owners to defer their payments for long periods of time.
About 6,500 home owners have been in arrears for two years or more, he revealed.
HDB will provide assistance to help these people sell and downgrade their flats. In more dire circumstances, HDB will exercise more flexibility in granting another loan for purchase - even for downgraders, people who are reducing the size of their home.
This is a departure from usual HDB policy, which only grants a second HDB loan to upgraders, or people who are increasing the size of their HDB flat.
But in light of the current economic situation, MPs have called on HDB to also consider offering its concessionary loans to downgraders who are second-timers.
To add to the range of options available for home owners in difficult times, HDB will also be introducing a new concept: Interim rental housing.
This will enable home owners to sell their flats immediately, and buy new, small flats. And while this is being built, they can move into rental flats, which are priced below market rate, said HDB.
