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Source:
www.hdb.gov.sg |
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New Procedure for flat buyers
taking an HDB loan |
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With effect from 1 Jan 2007, flat buyers who
intend to obtain an HDB loan to buy a new or resale flat will need to
apply for an HDB Loan Eligibility Letter before they can commit to a
flat purchase. |
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The HDB Loan Eligibility Letter will
indicate the maximum loan amount that the flat buyer is eligible for and
the repayment period and monthly instalments to service the maximum
loan. |
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Currently, new flat buyers are informed of
their loan amount after the keys are ready for collection, and resale
flat buyers are informed at the first resale appointment. |
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Rationale for an HDB Loan Eligibility
Letter |
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Over the years, HDB has introduced several
initiatives to educate and help flat buyers plan ahead financially for
their flat purchases. These include providing flat buyers with simple
financial calculators for financial planning, and credit counseling by
HDB staff. |
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As a further step to inculcate financial
prudence and forward planning among HDB flat buyers, HDB will require
those applying for HDB loans to obtain a HDB Loan Eligibility Letter
before they commit to a flat purchase. |
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The majority of HDB flat buyers finance
their purchases with home loans that are repayable with monthly
instalments over a long period of time. |
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There is hence a need for them to plan
their finances carefully, to ensure that they are able to bear the
additional financial burden over the period of the loan before
committing to a flat purchase. |
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The HDB flat buyer will need to
consider the other demands on his financial resources, such as
family living expenses and other existing loan commitments. |
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With the new procedure, HDB hopes to
better help flat buyers understand their financial situation
before they commit to the purchase. |
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Implementation |
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The HDB Loan Eligibility Letter must
be obtained before buyers exercise the Option to Purchase for the
HDB flat. |
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Similarly, those who intend to take
over the ownership of an existing HDB flat must also obtain an HDB
Loan Eligibility Letter before they submit their application to
the HDB Branch Office. |
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Buyers will need to comply with the
new procedure to be granted an HDB mortgage loan to complete the
purchase of the flat. |
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Those who intend to take an HDB Loan
can apply on-line for the HDB Loan Eligibility Letter via the HDB
website at (www.hdb.gov.sg). |
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They can also check their eligibility
for an HDB loan at the counters in HDB Hub. The loan eligibility
letter will be valid for a period of 3 months from the date of
issue. |
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Those buying HDB flats with bank loans
will have to obtain a Letter of Offer from the bank before they
exercise the Option to Purchase for the HDB flat. |
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Those who do not require any home loan
to buy the HDB flat will have to produce documentary proof showing
that they have the financial means to purchase the flat. |
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The new procedure will be implemented
from 1 Jan 2007 onwards. Further details on the implementation
date are attached in
Annex A. |
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Enquiries |
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For further enquiries, the public may: |
- Call the toll-free Sales/Resale Customer Service Line at
1800-8663066 or Branch Office Service Line at 1800-2255432;
- Visit the HDB Sales Office or Resale Office counters at the
Atrium, 1st storey at HDB Hub in Toa Payoh; or
- Visit any of the HDB Branch Offices |
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More..... (Annex A) |
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Source:
www.hdb.gov.sg Press Release
13 Oct 2006 |
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Important
Notice |
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FrontPage Edition: Sun 15 October 2006
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