Re-mortgage his HDB flat

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JULY 8, 2003 TUE
Buyers of HDB flats do own them
WE REFER to the letter, 'One never really owns his HDB flat even when
mortgage paid', by Mr Patrick Tan Siong Kuan (ST, June 28).

Purchasers of Housing Board flats do own them. That the name of each
purchaser of an HDB flat is registered in the title deeds lodged with
the Singapore Land Authority (SLA) confirms his or her ownership of
the property.

Although the original title deed or lease of any property sold is kept
with SLA in accordance with its requirements, HDB will issue a
duplicate lease to the registered owner once the loan is fully
redeemed.

Mr Tan mentioned that he was unable to re-mortgage his HDB flat. For
many Singaporeans, their HDB flat is their only asset. If they use
their flat as collateral to raise credit facilities from banks, they
run the risk of losing their flats should they default on the loan.
This would create hardship for the flat owners and their families.

We thank Mr Tan for his feedback. HDB will continue to review its
policies from time to time to keep them in tune with the changing
needs of the population.

TAY BOON SUN
Senior Public Relations Officer
for Chief Corporate Development Officer
Housing and Development Board

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HDB’s Consent

Under s 50 of the Housing and Development Act, no HDB flat can be mortgaged without the prior written consent of HDB.
The Housing and Development (Mortgage to Lender) Rules 2000 provide for blanket consent to bank/financial institution mortgages subject to terms more specifically set out in the rules. In particular, the mortgage shall be security solely for the repayment of a housing loan granted to the mortgagor to finance or refinance the purchase of the flat. For refinancing cases, the loan granted must not exceed the redemption amount payable upon completion. The fresh loan cannot be granted in respect of HDB upgrading costs. Persons who are not lessees of the flat cannot be included as borrowers. However, lessees who do not meet the bank/financial institution’s credit assessment criteria can request to be excluded as borrowers, although they must remain as mortgagors of the flat.
HDB’s endorsement of consent on the mortgage documents is not required where consent has been granted under the Housing and Development (Mortgage to Lender) Rules.

http://www.lawgazette.com.sg/2003-11/Nov03-feature3.htm

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