Reply to Parliamentary Question on applications to reduce property loan repayments under MAS relief scheme

QUESTION NO 344

NOTICE PAPER 195 OF 2020

FOR WRITTEN ANSWER

Date: For Parliament Sitting on 5 January 2021

Name and Constituency of Member of Parliament

Ms He Ting Ru, MP, Sengkang GRC

Question:

To ask the Prime Minister how many individuals have applied to temporarily reduce their residential, commercial and industrial property loan repayments under the MAS relief scheme.

Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:

1.      As of end-November 2020, financial institutions (FIs) had received 2,070 applications. They had processed 1,590 of these applications and approved 85% of them.

2.      Most of the unsuccessful applications were rejected because the applicants did not meet the eligibility criterion where their incomes are significantly impacted [1] . As individuals taking up the reduced instalment plan will pay down their property loan over a longer period and thus incur higher interest costs, the income impact criterion had been put in place to ensure that individuals take up this option only if they really need to. Nonetheless, FIs will review each case and work out loan repayment options with individuals, even if they do not meet the income impact criterion.

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1. [1] The reduced instalment plan on residential, commercial and industrial property loans is available to individuals who have suffered a loss of 25% or more of their monthly income after 1 February 2020, and for property loan payments that are not more than 90 days past due (regardless of whether they have taken up payment relief previously).