Special Financial Relief Programme for Home Loan Customers

Supporting homeowners through COVID-19

Apply to defer payments for the principal, or both the principal and interest on your home loan if you have not missed more than 3 months of instalment payment. The deferment period is until 31 December 2020. You may also opt to extend your loan tenor by the corresponding number of months that your loan payment has been deferred.

Defer Principal and Interest

Payment Deferment
  • Your next instalment will be deferred to 15 January 2021 for HDB Loan and 4 January 2021 for all other property loans.
Instalments in 2021
  • Your next instalment will be deferred to January 2021.
  • We will advise you on the revised instalment amount.
  • The instalments from January 2021 and subsequent months will apply to pay off the interest accrued during the payment deferment period before the loan principal amount is reduced.
Interest Computation
  • During the payment deferment period, interest will be computed on the principal amount. There is no interest charged on the deferred interest payments.
Effective Date
  • For HDB loans: Form received by the 6th of the month will be effected in the current month.
  • For private home loans: Form received by the 21st of the month will be effected in the following month.

Defer Principal only

When will my mortgage principal payment be deferred to?
  • HDB loans: Deferred to 15 January 2021
  • All other property loans: Deferred to 4 January 2021
What do I need to pay during the payment deferment period?
  • Your next instalment will be due on January 2021.
  • We will advise you on the revised instalment amount.
How will interest be calculated?
  • During the Interest-Only period, you are required to pay interest for the amount on the due date.
If I am interested, when do I need to submit my application?
  • For HDB loans: Form received by the 6th of the month will be effected in the current month.
  • For private home loans: Form received by the 21st of the month will be effected in the following month.

How deferment works

Mr and Mrs Lim's profile:

They are currently serving their residential property loan with OCBC Bank, but would like to defer their monthly instalments to a later date.

INTEREST CALCULATION

Opting-in the scheme will result in higher interest paid on the loan. Interest is charged on the principal loan amount during the deferment period.

Monthly interest

For the month of June 2020

S$1,000,000

Principal amount as at 1 June 2020

x

2% per year

Fixed rate home loan package

x

30 days out of 365 days

Number of days in June 2020 divided by the number of days in a year

=

S$1,644

Monthly interest

Total interest

From 1 June 2020 to 3 January 2021

S$1,000,000

Principal amount as at 1 June 2020

x

2% per year

Fixed rate home loan package

x

217 days out of 365 days

Number of days from 1 June 2020 to 3 January 2021 divided by the number of days in a year

=

S$11,890

Total interest

HOW TO APPLY

Fill out form

Step 2

Fill out form

Online form:

  • Complete all fields and click “Submit”.
  • Please attach an image of your signature. If this is blank, we will call you to verify your application.

Wait for approval

Step 3

Wait for approval

  • The processing time for the application will take up to 4 working days.
  • It will take up to 6 working days if signature is not submitted.

Receive notification

Step 4

Receive notification

You will receive an email advising the start date of the scheme, information on the monthly repayment amounts and the total interest accumulated during the deferment period.

ADDITIONAL INFORMATION
  • Which scheme is better for me?

    Deferring both the principal and interest will free up more cashflow for you than the Interest-only scheme as you need not pay anything until 2021.

    However, you will end up paying more interest to the bank. This is because interest accrued during the deferment period needs to be paid off after the deferment period. This will be deducted from your monthly instalment after the deferment period and as a result you will take a longer time to pay down the loan principal and incur more interest on the loan principal.

  • Can I withdraw from the scheme before 31 Dec 2020?

    Yes, you can withdraw from the scheme. To do so, reply our approval email by stating that you wish to withdraw from the scheme. We will then process your request as follows:

    • For HDB loans: If we receive your request by the 6th of the month, your loan will revert to its original repayment plan that month.
    • For private home loans: If we receive your request by the 21st of the month, your loan will revert to its original repayment plan in the following month. Otherwise, it will revert to the original repayment plan in the month after that.
  • Will my lock-in period be extended if I opt for either of the deferment schemes?

    No, your lock-in period will not be changed.

  • Can I redeem my loan immediately in early next year?

    Yes, you can. However, note that the interest accrued during the deferment period will still need to be paid off, even if you redeem your loan in early 2021.

  • Can I make a partial repayment during the payment deferment period?

    Yes, you may make a partial repayment during the deferment period. The repayment will be used to pay down the outstanding loan principal.

    For customers on the interest-only scheme, the interest amount due will be reduced after the repayment. You will receive an advice informing you of the new interest amount due.

  • Can I reprice my loan during the deferment period?

    The payment deferment schemes will significantly free up more cashflow for you than if you were to reprice your loan. Hence, if you require more cashflow, you may want to consider applying for either of the 2 schemes first then reprice your loan.

  • Do I need to instruct the CPF Board to stop instalment payments?

    If you choose to defer principal and interest and you are not late in servicing any instalment, CPF funds received will be returned as there is no payment due until January 2020. You can also log into MyCPF Online Services with your SingPass to give this instruction.

    If you have missed payments and did not inform the CPF Board to cease payment, CPF funds received will pay off the outstanding payments instead of being refunded to the CPF Board.

  • Will my Credit Bureau records be affected if I am on the schemes?

    No, your Credit Bureau records will not be affected. If you defer principal only, your credit bureau record will be affected if you are late in interest payments.