Putrajaya Proposing Lower House Loan Interest Rate, Even as BNM Hikes OPR
Malay Mail Online , Photo Credit to Azinuddin Ghazali
clock 26-01-2018
hit 1,162

Putrajaya said today it will submit a proposal to Bank Negara Malaysia (BNM) proposing a lower mortgage interest rate, in a bid to reduce the overall financial burden of Malaysian homeowners.

news-banner


Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the proposal will be a part of the National Housing Policy 2.0, which will also include a review of the freeze on property development projects worth RM1 million and above that had come into effect in November last year.

"If possible the housing loan interest rate should be low enough that it is very competitive but at the same time does not impact the national economy negatively" he said during the high-level committee meeting on housing here.

This comes even as the central bank announced today it is hiking its overnight policy rate (OPR) by 25 basis points to 3.25 per cent, the first increase since July 2014.

Zahid said comparative studies have been conducted on the housing loan interest rates in other countries ― with Malaysia's interest rate at 4.65 per cent compared to Singapore's 1.65 per cent and Australia's 5.3 per cent.

"It was discovered (based on the National Property Information Centre 2017 study) that 65.17 per cent, or 8,050 units, of homes between the price range of RM250,000 to RM500,000 remain unsold.

"This requires the development of big data analytics for the Malaysian residential property market, so the government can get a clearer picture of the housing situation in the country and make more accurate decisions" he said.

Other proposals made during the meeting include providing exemptions or initiatives to affordable housing developers, mechanisms to control property price speculation, setting up the Public Housing Management Body for People's Housing Projects, as well as introducing the rent-to-own scheme for public housing tenants.

Zahid said BNM has also proposed the government to set up a special coordinating task force for home buyers' end-financing.

"The bridging financing directly given by financial institutions is largely settled. It is the end financing which we need to resolve" he said.




WHAT DO YOU FEEL ABOUT THIS?

0
LOVE
0
HAPPY
0
SURPRISED
0
SAD
0
ANGRY


COMMENTS
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.

SIGN UP NEWSLETTER

logo
Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.

logo
Weekly Window
Your weekly dose of what's hot and what's not in property. The window is your view into the realm of real estate in Malaysia, curated from our portal based on the most popular pieces over the week. For those who just can't get enough, this is for you. Ain't nobody got time for dailies anymore, weekly is the new daily.