De­vel­op­ers' home fi­nanc­ing scheme still on the ta­ble: Noh


KUALA LUMPUR: The pro­posal on prop­erty de­vel­op­ers of­fer­ing fi­nanc­ing to house buy­ers is still on the ta­ble, ac­cord­ing to Ur­ban Well­be­ing, Hous­ing and Lo­cal Gov­ern­ment Min­is­ter Tan Sri Noh Omar.

De­spite re­ceiv­ing flak over the ef­fec­tive­ness of the pro­posed scheme to help in­crease home own­er­ship, Noh said its min­istry is study­ing the pro­posal with the coun­sel of the Real Es­tate and Hous­ing De­vel­op­ers’ As­so­ci­a­tion Malaysia, the Na­tional House Buy­ers As­so­ci­a­tion of Malaysia and other non-gov­ern­men­tal or­gan­i­sa­tions.

“We want to make sure that if we con­tinue with this pol­icy, it will be a win-win sit­u­a­tion be­tween pur­chasers and de­vel­op­ers,” he told re­porters af­ter wit­ness­ing the sign­ing of an agree­ment be­tween Ti­ti­jaya Land Bhd and China's CREC De­vel­op­ment (M) Sdn Bhd on a project at Em­bassy Row in Kuala Lumpur.

Noh said the de­vel­op­ers must fol­low and agree to the terms and con­di­tions set un­der the new scheme. A to­tal of 42 de­vel­op­ers have mon­eylend­ing li­cences cur­rently.

In Septem­ber, he said prop­erty de­vel­op­ers could ap­ply for a li­cence un­der the Moneylen­ders Act 1951 and the Pawn­bro­kers Act 1972 in a bid to pro­vide more fi­nanc­ing op­tions for home buy­ers.

The in­ter­est rate would be capped at 12% a year for bor­row­ers with col­lat­eral and 18% a year for those with­out col­lat­eral while the loan ten­ure would be be­tween 10 and 20 years. El­i­gi­ble prop­erty de­vel­op­ers may pro­vide up to 100% fi­nanc­ing to all home buy­ers.

Since then, how­ever, there have been calls to re­view the pol­icy to al­low de­vel­op­ers to lend money to home buy­ers, draw­ing at­ten­tion to the high in­ter­est rates and the lack of freg­u­la­tory su­per­vi­sion in the scheme.

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