MORE home-owners in the Malay-Muslim community are having trouble paying their housing arrears, several Malay-Muslim leaders told The New Paper.
National Trades Union Congress' (NTUC) deputy secretary-general Halimah Yacob said she has seen a 'marked increase in the past two years' of such cases.
The MP for Jurong GRC said: 'In every meet-the-people session, I tend to see such cases, every week. While those who can't pay their housing loans come from all races, a significant proportion come from the Malay community.'
But it's not just a case of overspending.
She said: 'We have to be fair, it's not just one reason that they overstretch themselves. For some, it is because they have lost their jobs, others have had a pay cut, medical bills, or someone passing away which causes them to be unable to finance their loan.'
MP for Bishan-Toa Payoh GRC, Mr Zainudin Nordin, 46, also said he has seen an increase in Malay-Muslim constituents who have difficulty in paying off their housing arrears. He noted: 'While I wouldn't say that there is an increase in large numbers, there is an increase nevertheless.'
To draw a comparison, about two years ago during his meet-the-people' sessions, there were weeks when he didn't meet anyone with housing loan issues.
Now, he tends to see one to two cases each week.
Like Madam Halimah, he stressed that such cases come from all ethnic groups, but there is a 'majority' that tends to come from the Malay-Muslim group.
Said Mr Zainudin: 'I am rather worried and concerned about such developments, even one case is one case too many.'
For him, one of the reasons some families find themselves in such a bind is because they overstretch themselves by committing to a flat that is beyond their ability.
He said: 'Yes, you can have aspirations, dreams, ambitions, but this must be in the context of ability, you can't have aspirations in a vacuum.'
Irresponsible
He also blamed 'irresponsible property agents', who are 'out to make a quick buck'.
He said he had come across cases where overzealous housing agents got first-time flat buyers to commit to a bank loan with rates that they could ill afford, instead of getting a HDB housing loan which has more affordable rates.
It is understood that property agents typically get about 0.15 per cent of the total housing loan as a referral fee from the bank.
However, this amount is quite negligible, pointed out Mr Mohamed Ismail, 45, PropNex's chief executive.
He said: 'For a $100,000 loan, this works out to be about $150, which is not exciting at all, so I don't think any agent will be motivated by this.'
Community group Taman Bacaan's president, Mr Abdul Halim Kader, 58, also noted that some home owners think they can use their flat for a quick profit - by buying low and selling at a higher price.
He said: 'What home owners should realise if they can own a home it is something to be treasured. It's not about making a quick buck, because they may otherwise land themselves in trouble.'
What can be done then?
Mr Abdul Halim said: 'The HDB should educate and raise awareness among potential home owners about the problems they may face once they sell their flat.'
On its part, HDB has previously stated the importance of home owners 'right-sizing' their flat should their financial circumstances change.
HDB has also suggested that property agents could work in concert with HDB.
He said: 'Instead of encouraging property agents to sell on commission, they could work together with HDB to play a part in advising home owners.'
Now, there is only one shelter that takes in homeless families, New Hope Shelter.
Madam Halimah said families facing financial difficulties should try to work with HDB to see what options they have before selling their flat.
But more importantly, families need to take preventive steps like proper financial planning.
She said: 'It's not just about their short-term ability to service the loan, they also need to be able to service their loan long-term.'
Mr Mohamed agrees that property agents can provide valuable advice to potential home owners.
However, ultimately, home owners have to be personally responsible.
He stressed: 'Agents can only advise customers to buy a flat that is within their means, but if the client chooses to be lavish, agents can't do anything.'
Help is available from HDB
FAMILIES who need to urgently downgrade their flats can get help under the HDB's Interim Rental Housing measure which provides subsidised rental flats.
Under the programme introduced earlier this year, units in Toa Payoh, Taman Ho Swee and Havelock Road are rented out at rates lower than market rates through a managing agent.
Tenants are charged about $300 to $400, inclusive of conservancy and utilities.
This is aimed at helping people who are not eligible for a long-term rental flat because they have not fulfilled the required 30-month wait after selling their flat.
HDB says the 30-month rule is to prevent such people from competing with other needy families for limited rental flats.
Unlike Interim Rental flats whose tenancies usually last for a few months, normal rental flats have two-year leases and can by renewed by HDB.
The New Paper reported last month about a 44-year-old cleaner and his family of 11 who became homeless after he sold his four-room flat in Jurong.
He was not able to afford the repayments, and sold it, thinking he would get a rental flat immediately.
But he ended up bunking with friends and relatives, and finally stayed at void decks in Jurong.
HDB eventually allowed him to get an interim one-room rental unit.
HDB's other measures to help home-owners having problems repaying their loans include allowing them to sublet an extra room or lowering the monthly instalments by extending the loan repayment period.
