50 to 59 years old have overtaken 21-29 year olds in Singapore housing defaulters

[Watchman]

50 to 59 years old have overtaken 21-29 year olds in Singapore housing defaulters

Mon, Aug 23, 2010
AsiaOne




DP Credit Bureau Pte Ltd (DPCB) today released figures showing the percentage of mortgagors in Singapore that have fallen behind in their repayments has halved over the last two years.

In March 2008, the average rate of default across all age groups was 0.89 per cent. This fell to 0.59 per cent in March 2009 and by March 2010 the rate was a low 0.43 per cent.

This means that in 2008 one in every 112 mortgagors were in default on their repayments, and this figure has dropped to just one in every 233.

The figures also showed that house owners from 50 to 59 years old have overtaken 21-29 year olds as the age bracket with the highest percentage of loans in arrears, with 0.62 per cent behind in their payments.

Traditionally 21-29 year olds have had the highest percentage of defaults on their mortgages.

In March 2008 the percentage of 21-29 year olds in default on their mortgage was 2.2 per cent. This has steadily fallen over the last two years to 0.42 per cent.

Over time there has been a shift towards younger borrowers, with the percentage of loans given to 21-29 year olds increasing, while for people over 50 the percentage of loans is declining.

The lowest rate belongs to 30-39 year olds with just 0.34 per cent in default.

Mr Lincoln Teo, General Manager of DPCB said there were several factors which explain why borrowers are being more diligent in their loan repayments.

"The numbers represent an improvement in the property market leading to more positive sentiment. This indirectly drives better payment behavior from mortgagors.

"We have also seen greater consumer awareness on the maintenance of one's credit worthiness and how important it is for securing credit. Over the last two years, the credit bureau has seen a growing number of borrowers being diligent in their loan repayments in order to maintain or improve their credit standing," Mr Teo said.

Commenting on variations across ages, Mr Teo said it is encouraging to see younger people being more consistent in meeting their mortgage obligations, but this may not mean that they are handling other credit responsibly.

"Data from DP Credit Bureau shows younger borrowers are more likely to be in default on their car loan, credit cards and overdrafts than all other age groups. So when young people get into difficulties with credit they will continue to pay their mortgage while falling behind on their other loans. With increasing property prices and bigger mortgages, this group may also be shouldering a larger debt burden which may not be sustainable in the long run."

"While 50-59 year olds currently have the highest rate of default, the numbers have improved over the last two years. One explanation is that when people in this age bracket lose their employment, many find it hard to get another job, placing great pressure on their ability to continue servicing their mortgages," Mr Teo said.

The group with the most mortgagors are the 40-49 years olds accounting for 37 per cent of all loans, down from 39 per cent two years ago.

They are closely followed by 30-39 year olds who have taken out 35 per cent of all mortgages, up from 32 per cent two years ago.

Nearly half (49.7 per cent) of all mortgage defaults take place between the third and the fifth year of the loan.

 

[manokie]

These 50-59....... What were they doing with their salaries when economy was good?

I bet they are in the 20th-30th year of their slave loan

 

[no_faith]

imho, when the economy is gd, salaries went into paying more loans/interest lor.

imho, juz like nw, govt claim economy is booming, u see more cars, ppl buying houses, i mean having more cars, and houses but these are all loans and huge interest. dey tot can gain back.

but once the bubble burst, dey have huge debts and repay the debts.
retrench, pay cut etc.
so the time drag and probably hit the age of 50-59. cycle repeat.

 

[Glaringly]

Isn't it the clearest indication, that this "nation" discriminate older workers by replacing them with cheaper FTs, en-mass.

Vote those white scum out or next in line to default payment will be you, those in the 30s, 40s! Don't think because you are younger you will be safe?

 

[Equalisation]

Isn't it the clearest indication, that this "nation" discriminate older workers by replacing them with cheaper FTs, en-mass.

Vote those white scum out or next in line to default payment will be you, those in the 30s, 40s! Don't think because you are younger you will be safe?

.... some more the Pinoys FTs who pose for photograph at hostage bus .... Phooooeeeeyyy !!! Matalek Off !!

 

[Equalisation]

Isn't it the clearest indication, that this "nation" discriminate older workers by replacing them with cheaper FTs, en-mass.

Vote those white scum out or next in line to default payment will be you, those in the 30s, 40s! Don't think because you are younger you will be safe?

Absolutely !!

Me, a true blue citizen ... working 2 jobs at 6th Avenue to put food on table ... and anytime ....jobs go to FTs .... and pinoys who coming in .... pose pictures at hostage bus !!

Goood God ..... waht is happening ???

 

[SIFU]

In March 2008, the average rate of default across all age groups was 0.89 per cent. This fell to 0.59 per cent in March 2009 and by March 2010 the rate was a low 0.43 per cent.


the defaulter rate fell cannot becos some of those previous defaulted had their flats repossessed by hdb? or some defaulters sold their flat n now renting place or staying with relatives?

everything so rosy is it.

 

[johnny333]

These 50-59....... What were they doing with their salaries when economy was good?

I bet they are in the 20th-30th year of their slave loan

Probably taking loans on cars, holidays & keeping up with the Jones

 

[johnny333]

Isn't it the clearest indication, that this "nation" discriminate older workers by replacing them with cheaper FTs, en-mass.

Vote those white scum out or next in line to default payment will be you, those in the 30s, 40s! Don't think because you are younger you will be safe?

Silly Sporeans, they chose to ignore what the PAP was doing to "other" Sporeans ignoring the fact that what goes around, comes around.

Sooner or later they share the same fate, as all Sporeans get old :(

 

[rodent2005]

These 50-59....... What were they doing with their salaries when economy was good?

I bet they are in the 20th-30th year of their slave loan

There was NEVER a good economy for the working class. The lower paid workers have not had a pay rise in real terms in 20 years.

 

[Queen Seok Duk]

Maybe the 21 - 29 have stopped buying flats because no money.

Or the 21 - 29 could be PRs and FTs who are rich as they are more likely to be employed compared to poor Sinkies.

 

[KuanTi01]

The HDB's housing policy is clearly flawed! So-called subsidised public housing but with prices shooting for the skies, it is small wonder that 50-59 year olds still cannot clear their mortgages and ended up as defaulters. Pay and pay til they die! It is not a surprise anymore because everything in this country is profit-driven and "privatised" even the civil service!

 

[wuqi256]

Very good comment, i only wished i have more points to up you.

 

[Leongsam]

Anyone who still has a mortgage at 50 is a real loser. They caused their own downfall purchasing consumer items instead of paying what they owed.

Paying off debt early is the foundation of achieving financial independence.

Those with nothing more than a basic knowledge of financial management will be mortgage free by their mid 40s.

 

[manokie]

The HDB's housing policy is clearly flawed! So-called subsidised public housing but with prices shooting for the skies, it is small wonder that 50-59 year olds still cannot clear their mortgages and ended up as defaulters. Pay and pay til they die! It is not a surprise anymore because everything in this country is profit-driven and "privatised" even the civil service!

What nonsense

When most of these fools bought their houses, it was near 100k

It's their fault and none of HDB's.

 

[zuoom]

why would or result in this "50 to 59 years old have overtaken 21-29 year olds in Singapore housing defaulters"?

other than they might fall out of a job and find it harder to get another job that pays the same.

 

[KuanTi01]

What nonsense

When most of these fools bought their houses, it was near 100k

It's their fault and none of HDB's.

If these people who bought HDB flats at near $100K are considered fools, then that adds up to quite impressive numbers. We are almost a whole nation of fools because more fools are joining the buying frenzy and buying resale flats at hugely inflated prices.And yes, by your reckoning, HDB is so helpless and innocent. Behind HDB there's a multi-talented highly paid team of bureaucrats and technocrats headed by a very talented visionary cabinet minister. All have suddenly become impotent and bird-watchers!

Just my 2 cents worth nia!