Many young housebuyers are unable to purchase properties due to affordability and stringent financing. Nevertheless, majority of first-time homebuyers are still unaware of what type of housing loans and properties they are able to afford.
In a bid to help the rakyat get up the property ladder, Prime Minister Tun Dr Mahathir Mohamad announced plans to review bank loan terms and process for young Malaysians looking to acquire their first property, reported The Edge.
"We found that banks are too strict with housing loans and this makes it difficult for people to own a house" he said after chairing a Cabinet meeting in Putrajaya.
"We would need to review the current process and certain mechanism will be introduced to ease the procedure.â€
It was earlier reported that the Housing and Local Government Ministry (KPKT) plans to meet with Bank Negara Malaysia (BNM) and the Ministry of Finance (MoF) to discuss the easing of current lending rules to enable more homebuyers from the M40 and B40 groups obtain housing loans.
"For some potential homebuyers, he or she may not be the sole breadwinner. There may be second and third income contributed by other members of the family. If the credit rating for this group of buyers could be considered, it will help to encourage homeownership" said Housing and Local Government Minister Zuraida Kamaruddin.