MALAYSIA TO PUSH BANKS FOR 100% LOANS TO FIRST-TIME HOME BUYERS

KUALA LUMPUR — Banks should give full housing loans to Malaysians, especially first-time house buyers, minister Tan Sri Noh Omar said today.

The minister of urban wellbeing, housing and local government said the problem that people face when buying properties now is with the end financing through banks.

“The problem that we are having now is end financing. Banks are not wanting to give full loans. Only 70 to 80 per cent is given.

“How do you expect people to find another 20 per cent? Even a house costing RM300,000 would be expensive as they require to put a payment of at least RM60,000. How to find that, especially first time house buyers?” Noh said during his speech while launching a property fair today.

He explained that despite several government schemes to help ease the burden of first-time house buyers, a higher loan from the banks would be ideal to solve housing problems here.

“This is what a lot of people face as they cannot put another 20 per cent despite us helping them. How do we help buyers like this? What is wrong in banks giving full loans?” Noh questioned

The Tanjung Karang MP also said banks and the Real Estate and Housing Developers’ Association of Malaysia (Rehda) should have a sit-down to come up with “out of the box” solutions to resolve this matter.

“Like Rehda and banks, they can sit and discuss and come out with new out of box scheme to reduce this end financing problem,” Noh said.

Putrajaya also wants Malaysians to be home owners, Noh said, adding that his ministry would be implementing a “transit home” programme where studio units would be rented out for a five-year tenure at affordable prices.

“These homes will be built in city areas, especially near public transport amenities. These houses cannot be sold as they are in prime area.

“We will build and rent out for five years only. After five years, they can own their homes. The rent we will give will [be] way cheaper than the studio apartments rented out by private developers,” he said.

Other than that, Putrajaya is also working out a project with government-linked companies (GLCs) to build affordable housing on ministry-owned lands.

The lands will be developed by the GLCs for a cheaper price and the houses would be targeted for first-time house buyers, Noh explained.

“The government has asked all ministries and government agencies which had vacant land, to be united under the NBOS (National Blue Ocean Strategy) and will be under [the] Prime Minister’s Department.

“The government will ask GLCs like Sime Darby to build these affordable homes. They will only take construction costs because the government will provide the land. The houses here can be cheaper because of this and we are targeting it to be below RM200,000,” he said, adding that this would be done throughout the whole of Malaysia.

During the tabling of Budget 2017 yesterday, Prime Minister Datuk Seri Najib Razak announced a special end-financing scheme for the 1Malaysia People’s Housing Programme (PR1MA), where buyers would get a loan of between 90 per cent and 100 per cent. Ten thousand homes would also be constructed for rent for young working adults.

MALAY MAIL

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