51 buyers failed to get new flats

Some 51 flat buyers were unable to take possession of their new flats in 2013 and 2014, after a second credit assessment conducted by the Housing Board.

This was revealed by Minister of State for National Development Desmond Lee in Parliament yesterday.

He was responding to questions from MP for Pasir Ris-Punggol GRC Zainal Sapari about HDB loan eligibility.

Mr Lee said that the HDB conducts a second credit assessment before it disburses a housing loan to flat buyers when the keys are ready for collection, The Straits Times Online reported.

He said: "The second assessment is to check that flat buyers' financial positions have not deteriorated in the intervening years and that they are still able to service the monthly mortgage instalments."

When a flat buyer does not proceed with the flat purchase, five per cent of the purchase price is forfeited by the HDB, but in some cases of "genuine financial hardship", HDB may consider refunding the forfeited amount, said Mr Lee.

Allowing the purchase of a new flat based on the first credit assessment was not an option, he said.

"It would not be prudent to complete the purchase if the buyers are no longer able to service a housing loan. It would merely be creating a potential loan defaulter down the road," said Mr Lee.

This article was first published on February 13, 2015.
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