Apartment owners with excellent mortgage loans of over $5,000 can currently take the LBS”provided that the profits from the rental sale are enough to fully discharge the loan.
The principle which needs Housing and Development Board (HDB) flat owners to possess an outstanding loan of more than $5,000 to be able to avail of their Lease Buyback Scheme (LBS) have been relaxed in February 2013.
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LBS allows elderly HDB apartment owners to market part of the apartment’s rental back to the Housing Board to boost their retirement earnings.
When LBS was initially rolled out in March 2009,”HDB apartment owners needed to possess an outstanding mortgage of no more than $5,000 to be eligible,” said the ministry in replying a Parliament query by Member of Parliament Gan Thiam Poh, who requested on the number of appeals it obtained from apartment owners who desired to apply for the plot but haven’t yet fully paid the loan as a result of financial difficulty.
On if the ministry will alter the principle for said applicants, it mentioned that this principle has already been relaxed since February 2013.
Therefore, apartment owners with outstanding mortgage loans of greater than $5,000 can currently take the LBS”so long as the profits from the lease sale are enough to fully release the loan”.