Households cannot pay because of lower income, illnesses, and unemployment.
Over the last three years, 32,000 out of 405,000 households (7.9%) are stuck in mortgage arrears of three months or more, the Ministry of National Development (MND) revealed.
According to a parliamentary reply, of these 32,000 households, almost half are in the 41-55 age group, which based on the age of the oldest owner. Another 38% are above 55, and the rest are in the 21-40 age bracket.
Common reasons why households fall into mortgage arrears include a drop in the household income, prolonged unemployment, or illnesses.
At the end of 2017, 57% or 18,200 of the said households were no longer in mortgage arrears.
To help households in mortgage arrears, HDB provides financial counselling and refers the household to agencies that can assist with employment, financial aid and social support. If the household’s financial problems are temporary, HDB can help by reducing or deferring their mortgage instalment payments to ease their cash flow.
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