Anonymous

29 Oct 2020

∙

Hi there, are there penalties for not paying housing loan on time?

Have not actually BTO yet but just want to get a picture of what to expect. What if something happens financially and we are unable to pay the housing loan on time? Are there penalties for late/missing payments?

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Yeap Ming Feng

29 Oct 2020

Head of Seedly at Seedly

Hey!

It depends on the types of loan you took.

If you took up a HDB loan and you were able to pay on time, you will be charged with a late payment charge by the Ministry of Finance. HDB will work out a repayment schedule with you.

For bank loan, they will probably charge you with late payment and penalty fees. If you are still unable to pay up, there is a chance of your house being repossessed.

In short, HDB is slightly more lenient in terms of the penalties of late payment. But, one should only get a house only when the finances are well sorted out.

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