Association urges first-time home buyers to consider seeking SRP assistance

KUALA LUMPUR (Aug 11): The Association of Banks in Malaysia (ABM) has urged first-time home buyers to consider applying for government schemes such as My First Home Scheme (SRP) for assistance in buying property, Bernama reported yesterday.

ABM said in a statement yesterday that 11 commercial banks and 11 Islamic financial institutions in the country are participating in the scheme, Bernama reported. The list can be obtained on SRP’s website.

"The buyers are advised to avoid obtaining more credit, which may not be sustainable in the long term, and over-stretching themselves financially," ABM explained.

The association warned potential homeowners: "In assessing one’s eligibility for a housing loan, monthly home loan instalments and other long-term monetary commitments such as hire purchase loans should not exceed more than 40% of gross monthly income."

It also added that there may be hidden costs or charges missed out by loan applicants.

ABM said the borrower might also want to consider getting a pre-approved housing loan before looking at purchasing a property, Bernama reported.

Loan applicants should work with their financiers when making the suitability and affordability assessments for any facility applied for to pave the way for more robust financial management on the part of consumers, Bernama reported the association as saying.

ABM is made up of 27 members who are commercial banks operating in Malaysia. The association’s goal is to establish and promote a sound banking system in cooperation/consultation with the regulators.

Want to know the price trends of a development? Click here.