HDB’s Policy That Made Me Loss More Than $20,000


Untitled-4A local Singaporean netizen has submitted a story regarding his unfortunate loss of confidence and trust in the govt.

The Story

Few years ago, Mr Lim and his wife bought a 5 room flat at bedok area a new BTO which cost him around $480,000. Mr lim was young and was offered a young couple scheme only 5% deposit is required(regular is 10%). He took up a grant of $20,000 from the HDB scheme and was able to purchase the flat by topping up with his current CPF account which wipe his CPF ordinary account to zero.

No Installment

Sadly, he divorced even before he was able to get the flat. HDB’s verdict was that his $20,000+ deposit has been forfeited and HDB is wants Mr Lim to pay back a separate amount of $20,000(GRANT MONEY) in CASH. Mr Lim wanted to get an installment to repay HDB.

HDB’s respond is they do not allow installment and he have to pay the $20,000 in full cash!


WTF? Mr lim has already lost $20,000 over in grants and personal CPF savings and now he has to pay back the grant in full cash. This is extremely unfair! The HDB did not lose anything as he already paid and the amount has been forfeited. So now HDB is earning an extra $20,000 from Mr Lim.

No one can help him not even the MP

Mr Lim was furious and went down to Toa Payoh HDB board and ask if the amount can be waived. Sadly HDB said no. Mr Lim had no choice but to visit the MP at that time it was Khaw Boon Wan for sembawang area. He did not get a chance to see Mr KHaw. Another attendant wrote down Mr Lim’s story and said that he will try his best to get the HDB to waive the amount.

After waiting for a month HDB send a letter to Mr Lim’s home “sorry HDB is unable to waive the amount…” and expect the $20,000 to be paid in full cash or HDB will start collecting interest. Mr Lim only can suck thumb.

In Mr Lim’s case, he will not be able to buy HDB in the future till he pay up the $20,000. Example, if Mr Lim only earns $2000 a month. Monthly CPF will be $720. He thinks that in the future he can save up his CPF account and pay up the debt. Guess what? HE CAN’T PAY THE DEBT USING HIS CPF. ONLY IN CASH AND FULL AMOUNT NO INSTALLMENT.

Mr Lim ” F HDB KN*, you give me 20k, take back 40k from me.”

Mr Lim will have to save up the amount to return CPF that was deposited into his account and deducted to pay for the house, which the amount has been forfeited, even if he is able to save up $1000 a month it will take about 2 years.

Meaning for at least 2 years he will be working for nothing.

CPF problems

In this situation, Mr Lim cant use his CPF to resolve his problem. CPF getting lock up till retirement is a problem. I see no wrong in Mr Lim using his CPF money to pay a CPF related debt. But we can’t touch or use it, the CPF account is ours yet not ours. Technically, THE MONEY CANNOT SOLVE HOUSING ISSUE. CPF money is a govt scheme for Singaporeans to enjoy affordable homes. But what can Mr Lim do? He can’t pay his debt? = can’t buy flat from HDB. The money in CPF can’t use. Meaning CPF ordinary account will be entirely useless for Mr Lim.


Don’t use the HDB housing grant unless you’re sure you will live happily ever after with your spouse. But in life there is nothing that is “sure” and “100%”. You have been warned! Nothing is free in Singapore! Remb PayAndPay.


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