Buyers don’t gain in long term if HDB makes loans above valuation
Letter from Loh Swee Heng, Deputy Director (Resale), Housing & Development Board
I REFER to the letter by Mr Alex Lim Kwang Hai, “Struggle for a room at the inn” (May 29).
Resale flat transactions are conducted on a “willing buyer, willing seller” basis, and prices may vary from the market valuation as a result of negotiations between the transacting parties.
The Housing and Development Board (HDB) does not provide mortgage loans above valuation, or allow the use of the CPF housing grant to pay for cash over valuation, as it would not be in the long-term interest of flat buyers to do so. It is important for flat buyers to exercise financial prudence in their purchase of flats.
In so doing, the HDB is following a common market practice for the mortgage loan to be secured against the market value of the property. This reduces the risk to the lender who is then able to charge a lower interest rate on the mortgage loan compared to other forms of unsecured debt.
Source : Today - 19 Jun 2007
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.