MORE HOUSING LOANS BEING APPROVED
However, many are dissatisfied because of higher interest rates
MORE Malaysians are now experiencing less difficulty in obtaining housing loans, but, many still remain dissatisfied, citing the high interest rate which should be lowered given present economic challenges.
According to PropertyGuru Malaysia’s recent Consumer Sentiment Survey, 46 per cent of respondents said the interest rates were too while 31 per cent felt they were acceptable.
“While more loans are being approved, especially due to more joint applications, many consumers are declining on account of the margin obtained and monthly instalments to be paid.
“Banks are now approving more applications, but, at times, the package offered is not attractive to consumers,” said PropertyGuru Malaysia country manager Sheldon Fernandez.
According to PropertyGuru data, 91 per cent of respondents stated they would need a bank loan to secure a home, of which 45 per cent opt for 90 per cent financing and 25 per cent go for between 70 and 80 per cent.
Another 18 per cent would choose 100 per cent financing.
The latest results coincide with findings that the Malaysian property market has reached a more stable position with gradual, but sustainable price appreciation, compared with the steep rise during the past two to three years.
Given this scenario, Fernandez said Malaysians continue to face challenges in pursuit of home ownership even though they were willing to transact.
Obstacles still remain for purchasers, especially for first-time home buyers, who were left with insufficient funds after paying their monthly instalments or meeting upfront costs such as stamp duties, legal fees, and moving costs, he added.
About 43 per cent of Malaysians mentioned they have used their Employees Provident Fund savings to purchase property, either as part of the initial downpayment or to offset their principal home loan amount, a five per cent increase in the sentiment this year compared with 38 per cent in the second half of last year.
“Generally speaking, dipping into one’s retirement savings to buy a property is a sign of unaffordability in the market. It could also mean that consumers are prioritising home ownership over their retirement years.” Bernama