If you are facing troubles paying your dues for your flat, here’s good news. The Housing and Development Board (HDB) will continue its suspension of late payment charges on mortgages and rental payments for another six months!
HDB Further Suspends Late Payment Charges on Mortgage, Public Rental Arrears to 30 Sep
As The Straits Times reports, the suspension will not be lifted until 30 September this year, after two extensions last year for a measure first scheduled to end in July 2020.
These extensions are “to help… households tide through” because some may “continue to face uncertain or difficult financial situation” despite Singapore’s recovery from COVID-19’s economic impact, according to Minister of State for National Development Muhammad Faishal Ibrahim.
He notes that such measures are “in line with the government’s approach to continue providing targeted support to lower income and vulnerable households.” You can read his Facebook post below:
Late payment charges currently stand at 7.5% per annum, depending on the instalment amount yet to be paid by the end of each month.
A Host Of Measures
Beyond suspending late payment charges, there are other measures in place to help HDB residents finance their homes. Whether it be rent or mortgage, housing is a huge part of anyone’s expenditure, after all.
Those on HDB loans, for example, can prolong their loan repayment periods up to when they are 65 years old, if they expect long-term changes in their financial situations, according to TODAYonline.
This is compared to the current 25-year limit for HDB loans.
Those living in public rental flats have also been given a 50% rent rebate on their rent payments, and loan instalment repayments can be reduced or deferred for up to twelve months.
From April 2020 till now, these financial assistance schemes have benefited more than 9,000 households, including 4,000 living in rental properties.
The Monetary Authority of Singapore (MAS) has also introduced an Extended Support Scheme in association with financial institutions, The Straits Times reports.
This includes reducing instalment payments by 40% per month for up to nine months, in addition to loan relief measures introduced by each bank. The MAS encourages borrowers, however, to resume full payments as soon as they are able, since interest continues to accumulate for each month their loans are deferred.
Ravi Menon, the managing director of MAS, believes that “a good outcome is one where individuals and SMEs are able to use the support measures to help them tide through the current economic difficulties and emerge with a sustainable debt burden as the economy recovers.”
Other long-term loans are eligible for extensions for up to three years, including renovation fees and student loans.
Those needing assistance financing home payments should approach their local HDB branches to discuss how best to afford payments, The Straits Times advises.
Feature Image: Trong Nguyen / Shutterstock.com
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