HDB Loans Out Of Reach

Source : TODAY, Wednesday, April 2, 2008

Income ceiling for extended family scheme is too low

My husband and I are buying a resale flat. We are first-time applicants and our combined monthly income is below $8,000, so we would qualify for the Housing and Development Board (HDB) concessionary loan.

To encourage first-time applicants and young couples to stay with their parents, the HDB recently introduced the extended family scheme, with a new combined income limit of $12,000. We intend to stay together with my parents-in-law to enjoy the $40,000 grant.

However, although the HDB has increased the combined income limit to $12,000 for the purpose of enjoying the $40,000 grant, it has not changed the combined income criteria for the eligibility of the concessionary loan, which remains at $8,000.

So if we want to stay with my husband’s parents and enjoy the grant, we will not qualify for the concessionary loan as our combined income (including what my husband’s parents earn) would exceed $8,000.

This is counter-productive and does not encourage young couples like us to stay with, or near, our parents.

Can the HDB relook into this and adjust the combined income criteria for the extended family scheme? This will help realise the objective of forging strong extended family ties.