In a parliamentary response, Monetary Authority of Singapore Chairman Gan Kim Yong reported that about 1%, or 4,000, borrower households with housing loans from financial institutions could face cash shortfalls under a severe stress scenario involving significantly higher mortgage rates and sharply lower income. The estimate does not represent households currently under stress, and the vulnerable share has remained relatively stable across annual stress tests. The vast majority of borrower households would remain resilient under the scenario. Financial institutions monitor repayment performance and are expected to engage borrowers showing early signs of financial stress, with assistance tailored to their circumstances. Housing and Development Board homeowners facing repayment difficulties may seek restructuring from the board or their bank, depending on the lender, while borrowers already experiencing debt repayment problems may approach Credit Counselling Singapore for financial counselling and debt management guidance.
Monetary Authority of Singapore estimates 4,000 mortgaged households could face cash shortfalls under severe stress
The Monetary Authority of Singapore estimates that about 4,000 mortgaged households could face cash shortfalls under a severe scenario of higher mortgage rates and sharply lower income. This represents around 1% of relevant borrowers and is not an estimate of households currently under stress. Lenders, the Housing and Development Board and Credit Counselling Singapore provide early assistance, restructuring or debt guidance.