Divorced mothers of lower income face challenges in housing.
To be eligible for rental flats, one’s household income has to be below $1,500. This puts mothers who earn slightly more at a distinct disadvantage.
I came across a divorced mother who earns $1,600 working for a statutory board. She has care and control of 2 children attending primary school. Having sold the matrimonial home after the divorce, she is currently staying with her children in 1 room with a relative temporarily. However, she would have to move out very soon as the relative is getting married.
This lady wishes to purchase a HDB resale flat but requires a HDB loan. She has additional income from giving tuition and receives maintenance from her ex-husband. As she also has some cash and CPF, there is reasonable basis that she will be able to repay a HDB loan for a 4 room flat, especially since she can easily rent out one room as well.
HDB rejected her application for a loan, saying that the maintenance payments and potential income from renting out a room had to be disregarded. As for the extra income from tuition, they needed a longer track record of at least a year for assessment.
What choices do mothers like her have? Renting a flat in the open market costs $1,500 or up. Renting a room is simply too small for her and her 2 children plus their school books and belongings. Such a cramped arrangement may lead the children to stay out more, aggravating the inter-generational effects of the divorce.
Can HDB have wider criteria in assessing loans for divorcees with children? It seems a shame to dampen the drive of mothers like the one I mentioned.
(Note: this speech was delivered in Parliament on 5 Mar 2010.)
