Rehda: Extend financing scheme to private projects

PETALING JAYA: Real Estate and Housing Developers’ Association Malaysia (Rehda) hopes the Government will extend the proposed end-financing scheme that will provide loans of 90% to 100% for PR1MA homebuyers to projects by private developers.

Welcoming the end-financing scheme, which is currently only available for PR1MA houses, as it will provide easier access to financing for purchasers and assist them in owning a property, Rehda president Datuk Seri FD Iskandar said including the private developers in the scheme would promote the Government’s objective in encouraging home ownership among the people.

On Friday, Prime Minister Datuk Seri Najib Tun Razak announced several innovative measures for Budget 2017, including the “stepup” end-financing scheme and exemption of stamp duty, as part of initiatives to promote home ownership beginning Jan 1.

Under the scheme, the conventional ruling on the maximum loan offered based on salary scale will be relaxed to check immediate loan application rejection.

Rehda also urged the Government to consider expanding the incentives of utilising unused government land in strategic locations to government-linked companies and PR1MA for development of 300,000 affordable houses to include private developers.

“This will certainly help boost the supply of affordable homes which are in high demand in urban areas,” he said.

On stamp duty waiver for houses priced below RM300,000, Iskandar hoped it would include properties of higher threshold.

Meanwhile, SP Setia Bhd president and chief executive officer Datuk Khor Chap Jen ( pic) said the Government’s decision to make financing more accessible and reducing the loan rejection rate for first-time home buyers augured well for the property market.

“However, we note that the Government did not introduce broader incentives to spur the soft property market and has proposed to increase stamp duty for properties above RM1mil,” he said.

Mah Sing Group Bhd group managing director and chief executive Tan Sri Leong Hoy Kum gave the thumbs up to the move to raise civil servants’ housing loans eligibility.

Sabah Housing and Real Estate Developers Association (SHREDA) president Datuk Francis Goh said helping buyers qualify for loans was a key area the Government, through Bank Negara, needs to address to ensure more people get to buy affordable homes.

He said most buyers could afford houses priced below RM250,000 but failed to secure loans because of strict Bank Negara credit check rules through credit information provider CTOS Data Systems (CTOS) and Central Credit Reference Information System (CCRIS).

He said the RM250,000 and below affordable houses in Sabah were about 30% lower than the actual price and as such loans could be given to the buyers who can afford it instead of sticking to strict regulations of clearing credit with CTOS and CCRIS.