LETTER | The push for banks to be more active in providing financing is welcome.
the difficulty faced by prospective homeowners in securing housing loans and called out lending institutions to be more lenient in providing financing. While he received a lot of criticisms for his speech, I am personally in agreement with him. Indeed, banks should not simply be rejecting home financing applications. However, certain conditions such as the following must also be put in place.
Alternatively, financial guarantees can also perhaps be provided by Cagamas. If the MOF and financial institutions can contribute even a portion of the financial guarantee, the lending financial institutions will not be exposed to an intolerably high risk of default. At the same time, first-time house buyers would appreciate assistance from the government. House price capped at RM200,000 or RM250,000 can be enforced for this scheme to mitigate the effect in case of default.
As such, for this special affordable housing scheme, the government should also make efforts to waive or reduce charges typically borne by housing developers. Similarly, utility providers such as Tenaga Nasional Berhad and Indah Water Konsortium should only be allowed to charge the costs that they incur for extending infrastructure into the new development area, and not to make a profit from the development initiative for this scheme as argued by Rehda’s president.
For this special affordable housing scheme to succeed, every party must practice open books, showing all their costs and profits. The National Housing Department director-general for the Ministry of Housing and Local Government, has pointed out that the utility providers have already taken the initiative to demonstrate their costs. The onus is now on housing developers to up their game.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Putrajaya offers RM550 mil in easy loans to oil palm smallholdersThe loans are being offered at 2% interest rate, says Finance Minister Lim Guan Eng.
Read more »
Minister reminds Sandakan voters of development projectsLim Guan Eng says the federal government has allocated RM183 million for the district.
Read more »
Govt, BNM working to ease housing loan terms and conditionsFinance Minister Lim Guan Eng says action will be taken against banks if house loan applications are rejected without any concrete justification.
Read more »
Additional RM42 mil in aid for Sabah rubber smallholdersLim Guan Eng says his ministry took into account the appeal by the Sabah Rubber Industry Board for aid to be given to those who managed plots of less than 6ha.
Read more »
Boasting not an election offence, Bersih says on Sandakan projectsThe electoral watchdog says Finance Minister Lim Guan Eng was only reminding Sandakan voters of the good that PH is doing. sandakan election
Read more »
Opposition foiled PH plans to restore equal status to Sabah, says Guan EngLim Guan Eng also hits out at Khairy Jamaluddin for claiming PH is taking credit for projects in Sandakan.
Read more »
Home loan got rejected? Try complaining to MOFMinister Lim Guan Eng says action may be taken against banks that reject loan applications without good justification.
Read more »
Govt will services 1MDB's debt obligations, says Guan EngPUTRAJAYA: Finance Minister Lim Guan Eng has given his assurance that the government will service all debt obligations related to 1Malaysia Development Bhd (1MDB).
Read more »
Guan Eng: No ground given to China in ECRL dealPUTRAJAYA: Finance Minister Lim Guan Eng says that he is unaware of claims that substantial acreage of land was 'given' to China under the renegotiated East Coast Railway Link deal.
Read more »