HDB loan defaults expected to rise

[makapaaa]

HDB loan defaults expected to rise
THE number of defaults on HDB home loans is expected to increase if the economy 'goes down even further', said National Development Minister Mah Bow Tan yesterday.
'As we all expect, if there are further job losses, then inevitably there will be more arrears cases coming up,' he said at HDB Hub.
Measures to help struggling home owners have been in place since the last downturn. These include deferring payments, downsizing flats or extending loans.
Parliament was told recently that there are about 33,000 flat owners owing the HDB arrears of three months or more. They comprise less than 8 per cent of the 420,000 households with HDB loans.
Mr Mah was responding to a question by The Straits Times about plans to help such home owners in the downturn.
'We have to look at individual cases to see what is the situation for each particular case. The main criteria is to help them to tide over...to make sure there is a sustainable solution,' he said.
He said deferring mortgage payments does not help in the longer term as home owners still have to pay and interest builds up.
Owners are encouraged to downgrade if they cannot afford a large flat, and if they have financial difficulties, HDB could extend another loan, he added.
This is an example of a sustainable solution, 'making sure that their loans are smaller... and they are able to survive this crisis and build up their finances from then on', said Mr Mah.
JESSICA CHEAM

 

[zhihau]

HDB loan defaults expected to rise
THE number of defaults on HDB home loans is expected to increase if the economy 'goes down even further', said National Development Minister Mah Bow Tan yesterday.

Dear Mr. Mah,

why should you worry when your HDB pigeon holes are so affordable as you've always claimed?

 

[newyorker88]

Dear Mr. Mah,

why should you worry when your HDB pigeon holes are so affordable as you've always claimed?

Be prepared to see more families camping under HDB flats, and more HDB homes with auction by bank.

The storm has just arrive singapore. We will see the retrenchment rates going up next month.

 

[chinkangkor]

A lot of retrenchments going on in China. Singapore will be worse as our operational cost is much higher.

 

[DOM the Clown]

HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

 

[Cestbon]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

Nice photo. And you are quite right 8% is very bad already. If all 8% HDB flat to be repose and sell it on the free market with sudden 8% supply that will show actual pigeon hole value.

 

[dysentry]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

HDB flats are overpriced. Lack of 3-rm and 2-rm flats around. Mah Bow Tan must resign.

 

[dysentry]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

Due to a disastrous valuation scheme, people need to top up COV, Mah Bow Tan must resign.

 

[downgrader]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

Got 92% subsideise 8% never mind lah

live and let live but dont urinate in lift

 

[mscitw]

Root cause of problem is expensive pigeon holes and greedy profits earned by housing mafia!

 

[lifeafter41]

Dear Mr. Mah,

why should you worry when your HDB pigeon holes are so affordable as you've always claimed?

Affordability is one thing, servicing loans for the next 25 years is another. With today's economic cycle getting shorter, ie, boom and bust, you might be lucky to get through one, but you may not be so lucky with the next cycle.

I am not surprised if many Singaporeans have only a few months buffer in the cpf ordinary account to tie them over the mortgage maybe for the next 3 to 6 months, any period of more than 6 months of unemployment, you are on your own.

At 8% of the total household, in arrears, is a very high figure and I believe it will only get worse in the next few months as more retrenchemnts bite.

 

[halsey02]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

HDB flats are overpriced. Lack of 3-rm and 2-rm flats around. Mah Bow Tan must resign.

Have any of you guys ever got hold of the title of your flat?, that means having the luxury of actually paid for your flat, all of it. I did, when I first purchased one, years back, paid fully by CPF...

You will be surprised....you are a leasholder...HDB holds the title to the flat, not you..even after you have paid fully for it..I ask HDB legal Dept., back then about this...I am not the property title holder...gee!, I did not know!:(

Just wonder...have they changed that?..anyone knows?

 

[dysentry]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

Have any of you guys ever got hold of the title of your flat?, that means having the luxury of actually paid for your flat, all of it. I did, when I first purchased one, years back, paid fully by CPF...

You will be surprised....you are a leasholder...HDB holds the title to the flat, not you..even after you have paid fully for it..I ask HDB legal Dept., back then about this...I am not the property title holder...gee!, I did not know!:(

Just wonder...have they changed that?..anyone knows?

Everyone knows HDB is 99-year lease, what are you mad about?

 

[pfingo]

Root cause of problem is expensive pigeon holes and greedy profits earned by housing mafia!

exactly just change rules every 10 years then can sell house

 

[deekopeh]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

Everyone knows HDB is 99-year lease, what are you mad about?

our changi prison free food, lodging, exercise and education.

 

[zhihau]

The storm has just arrive singapore. We will see the retrenchment rates going up next month.

just arrived? bro, if this is a wedding dinner reception, i think we're still at the cocktail reception... :(

 

[zhihau]

At 8% of the total household, in arrears, is a very high figure and I believe it will only get worse in the next few months as more retrenchemnts bite.

on affordability, what constitutes the factors for the calculation of affordability? the ability to repay the loan within a stipulated period of time? a pre-fixed proportion of the current monthly income? or what?

the HDB, being largely populated by the middle and lower rungs of the society, what is their average monthly household income? if affordability of a HDB pigeon hole is hinged onto any of those factors mentioned above, then i do believe your point on the shortening of the economic cycle is making our HDB pigeon holes very unaffordable, deeply in contrast with respect to what Mr. Mah always claimed.

i don't know about others, but i've been making a rough calculation for myself. if i chose to get the pigeon hole, it simply means i need a stable job for 30 years, and at the end of the 30 years, most of my CPF would be drained away due to the mortgages, meaning to say i still need to work another 15 years or so just in order for me to settle for retirement. that's about 45 years in all. assuming a healthy 25 year old male just graduated, it means he can only retire when he's 70?

as you've mentioned, the shortening of the economy cycle does have an impact on the ability to service the mortgage. it's true. so imagine what happens when i've serviced the loan for 15 years and i'm suddenly out of a job and been unable to service the loan, does that make the pigeon hole truly affordable as it was originally seen?

for the sharp eyed individuals out there, i haven't factored in medical coverage, children, their education and many other things. at the rate our pay is increasing, which isn't always as fast as the inflation rates... yah... the Government is still expecting us to buy these shitty deals? making babies for the country? HDB is affordable? i prefer to stay prudent and make necessary arrangements ;p

on the CPF issue, my concern is for those with little or minimal CPF contribution, especially those middle/lower income families holding out to part-time jobs, i believe these group of folks would face the largest difficulties when they become out of job. :(

 

[dysentry]

Singapore is a real estate company, HDB is the ponzi scheme that entraps its citizens.

 

[lifeafter41]

on affordability, what constitutes the factors for the calculation of affordability? the ability to repay the loan within a stipulated period of time? a pre-fixed proportion of the current monthly income? or what?

the HDB, being largely populated by the middle and lower rungs of the society, what is their average monthly household income? if affordability of a HDB pigeon hole is hinged onto any of those factors mentioned above, then i do believe your point on the shortening of the economic cycle is making our HDB pigeon holes very unaffordable, deeply in contrast with respect to what Mr. Mah always claimed.

i don't know about others, but i've been making a rough calculation for myself. if i chose to get the pigeon hole, it simply means i need a stable job for 30 years, and at the end of the 30 years, most of my CPF would be drained away due to the mortgages, meaning to say i still need to work another 15 years or so just in order for me to settle for retirement. that's about 45 years in all. assuming a healthy 25 year old male just graduated, it means he can only retire when he's 70?

as you've mentioned, the shortening of the economy cycle does have an impact on the ability to service the mortgage. it's true. so imagine what happens when i've serviced the loan for 15 years and i'm suddenly out of a job and been unable to service the loan, does that make the pigeon hole truly affordable as it was originally seen?

for the sharp eyed individuals out there, i haven't factored in medical coverage, children, their education and many other things. at the rate our pay is increasing, which isn't always as fast as the inflation rates... yah... the Government is still expecting us to buy these shitty deals? making babies for the country? HDB is affordable? i prefer to stay prudent and make necessary arrangements ;p

on the CPF issue, my concern is for those with little or minimal CPF contribution, especially those middle/lower income families holding out to part-time jobs, i believe these group of folks would face the largest difficulties when they become out of job. :(

Affordability is never a issue with Mr Mah and HDB when this term is being brought up, why is that so.

Previously you have single income family, ie, only the husband working, and is able to afford to monthly mortgage and take care of the family, the term of the loan is also short, ie 5 years to 10 years

Later on, you have dual income family, also able to afford to make the monthly mortgage payment, take care of family, term of loan is a little longer of between 5 years to 15 years

Now you have dual income famil, hardly able to afford to make the mortgage payment, hardly able to take care of family, term of loan is very long, ie, 25 years to 30 years.

The difference is the price of HDB has escalated such that a place previously at (based on 5 room flat) has gone from S$100,000, to S$250,000 to S$350,000 or even more, as seen lately prices even to S$550,000 or more,respectively.

What takes 5 to 10 years previously to repay is now to 25 to 30 years. Affordability is still there but the duration has lengthened considerably, almost a person entire working career, provided, the boom bust cycle do not get to him/her first.

As for taking care of family, cpf for retirement, etc, that is another discussion for another day.

 

[Tiu-leh-see-fart]

Re: HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!

But Ah Mah is merrying with Hsien loong that HDB price is going strong.

HDB loan defaults 8%. USA house defaults 5%. WE'RE DEAD!