Banks Should Offer First-Time House Buyers Flexibility In Obtaining Loans

PETALING JAYA, March 1— The Real Estate and Housing Development Association Malaysia (REHDA) is encouraging banks to be more flexible in providing loans to first-time house buyers.

Fifty per cent of these buyers are not entitled for loans because they are unable to come up with the down payment, drew low salaries and had existing commitments.

REHDA Chairman Datuk Ng Seing Liong said first-time buyers, who were usually young professionals and fresh graduates, should be given the chance to own a house and reap the returns on their investment for the future.

“We know that young graduates or professionals earn between RM2,500 and RM5,000 per month with lots of existing commitments.

“So, it is better to help them by giving them exemptions on stamp duty, lower interest rate, longer repayment period and lowered initial installments,” Ng told reporters at a press conference on next month’s Malaysia Property Exhibition (MAPEX) 2016 here today.

Ng said banks should also take into consideration the applicant’s education and family background and their current employment.

“We want banks to think out of the box and come up with special packages to help these first-time buyers own a house,” he said.

REHDA Vice-President Datuk Anthony Adam Cho said the association had requested Bank Negara Malaysia to consider easy entry and initially cheaper installments for first time buyers.

“We had dialogues with Bank Negara and they are looking at some of the options that we have proposed.

“We encourage qualified young people to buy their first house now as prices are very competitive,” he said.

This year’s MAPEX, themed ‘Home Ownership through Smart Financing’ would be held from April 15 to 17 at the Mid-Valley Exhibition Centre with over 40 developers and three financial institutions participating.

Minister of Urban Wellbeing, Housing and Local Government Datuk Abdul Rahman Dahlan is schedule to open the bi-annual and largest property exhibition.