PM: Govt to review bank loan terms for first-time homebuyers

KUALA LUMPUR (June 6): There will be a new mechanism to facilitate the bank loan application process for young Malaysians purchasing their first properties, Prime Minister Tun Dr Mahathir Mohamad said today. 

“We found that banks are too strict with housing loans and this makes it difficult for people to own a house.

“We would need to review the current process and certain mechanism will be introduced to ease the procedure,” he told the media after chairing a Cabinet meeting in Putrajaya today.

Yesterday, EdgeProp.my reported that the Housing and Local Government Ministry (KPKT) will discuss with the Ministry of Finance (MoF) and Bank Negara Malaysia (BNM) on relaxing current lending guidelines to enable more homebuyers from the B40 and M40 groups to secure housing loan.

“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,” Housing and Local Government Minister Zuraida Kamaruddin said yesterday.