Following the announcement of yet another drop in interest rates across banks in Malaysia, a Facebook live discussion was held last night, here at Urban Space Co, between real estate players and an experienced banker on “Secrets your banker won’t tell you”.
The session explored topics on banking that many ordinary folks find a mystery such as why interest rates keep dropping, what it means for the economy and why loans are not being approved.
At the table was Property Hunter host, Elson Kho, Hap Seng Sales and Marketing Director, Caroline Yong, IQI Sabah Team Leader, Joel Low and former Regional Director of a bank, Chan Teck Sang.
Here are some highlights into the insightful real estate talk.
Will interest rates lower again?
If you are reading this, you have probably heard that interest rates are lower now than ever before. It is almost unheard of! The government has taken this initiative to revive the economy as we are now in the recovery stage of the Covid-19 pandemic and they have already lowered interest 4 times, according to Teck Sang. He predicts that the interest rates will lower again at least another 1 to 2 times by the end of the year.
What about the moratorium?
When asked about the bank moratorium and housing loans, Teck Sang explained that banks are withholding approval of loans because they must be cautious and follow Bank Negara Malaysia guidelines to make decisions.
He predicts however that the moratorium will be extended another 3 months as he has faith in the government that they want the best for the people.
“Banks must understand that unemployment rates are at an all-time high and rising. How can people fulfil their commitments?” He urged.
“The people also must step back and take a look at all their commitments and cut back on expenses. A housing loan is the last one you can hold back on.”
If you get rejected for a home loan, it is not over!
Apart from maintaining a good credit score and savings, Teck Sang recommends sticking with an established developer as you can trust that your home will be completed on time, saving you from paying additional interest fees.
If however, you do not get approved he also pressed to not give up. Not many people take this step but according to Teck Sang, you should always ask why you did not get approved.
“It might not be you! The area could be blacklisted or it could be the project that you are applying for. If you ask they should give you a fair reason and if you don’t ask, you will never know. Plus, your record will stay there. Worst case scenario is that people stop searching for a home but I am confident that the government wants to help you.”
A helpline for all your real estate needs
Not only does the government want to help but so does Property Hunter. That is why they have created a hotline to assist you with all your real estate needs. Need help with finding a home, financing or law in real estate? Call FindMyHome at (010)660-0408
Find out more about Sabah My Second Home, what Joel had to say about his prediction on tourism in Sabah and what wine goes best with cheesecake by watching the full video here.
All 4 One Productions, Urban Space, Brown Fox Cafe and Oh My Wine were sponsors for this live discussion.