DPM: Lower interest rate to help new home owners

PUTRAJAYA: Lower interest rates for housing loans and more financial aid are among initiatives considered to help the people own houses.

The committee on housing, chaired by the Deputy Prime Minister, has asked Bank Negara to look at these possibilities.

“One of the things that contributes to the high cost of living is housing.

“We hope lowering interest rates can relieve some of their burden,” said Datuk Seri Dr Ahmad Zahid Hamidi after chairing the meeting.

He said that Bank Negara would make the recommendation based on the country’s economic situation and other factors.

“The central bank will also look at the rates imposed by financial institutions in the region.

“We want them to come back to us as soon as possible, because we want to help ease the people’s financial burden, especially in the low and middle income bracket,” he added.

Interest for housing loans in Malaysia stands around 4.65% while the rate in Singapore is 1.45% and 5.3% in Australia.

The Deputy Prime Minister said if this could be done, the glut of houses priced from below RM250,000 up to RM500,000 could also be resolved.

According to the National Housing Department, 65.17% of total unsold houses or about 13,000 units are under that range.