What happens if I cannot keep up with my mortgage repayments?

If you are unable to keep up with mortgage repayments, the most important step is to contact your lender early. Banks are generally willing to work with borrowers who communicate proactively, and early engagement significantly improves the options available to you.

For bank loans, options may include a temporary reduction in monthly instalments, a repayment moratorium where payments are paused or reduced for a defined period, or a formal loan restructuring such as extending the tenure to reduce monthly obligations. These arrangements are assessed on a case-by-case basis and are not guaranteed, but most banks prefer to find a workable solution rather than proceed to enforcement.

For HDB loans, HDB has its own assistance framework which may include extended repayment periods, reduced instalment arrangements, or other interim measures for flat owners facing genuine financial hardship.

If difficulties remain unresolved, the lender may ultimately proceed with foreclosure, a legal process through which the bank takes possession of and sells the property to recover the outstanding loan. A foreclosure sale typically achieves a lower price than an open market sale, and any shortfall between the sale proceeds and the outstanding loan balance remains the borrower's responsibility.

For this reason, voluntarily selling the property before foreclosure is generally preferable. It allows you to control the sale process, achieve a better price, and avoid the reputational and legal implications of a forced sale.