Banking industry should support 'My First Home' scheme, says Allstones

KUALA LUMPUR: Allstones Group Asia Sdn Bhd, a property developer, wants the banking industry to look into ways of ensuring the success of the "My First Home" scheme.

It welcomed the recent announcement that the scheme would be expanded to increase house prices limit from RM220,000 to RM400,000.

"It's a good initiative in 2012 Budget, but the fact that it is still restricted to buyers who earn less than RM3,000 a month, means that many will still not qualify to buy houses in the RM300,000 to RM400,000 bracket," said its chairman K H Sim in a statement on Monday, Oct 17.

To obtain RM220,000 financing, combined monthly income should be about RM3,300, he said

Sim said banks should be encouraged to introduce interest servicing loans for the first time for low-income buyers instead of the commonly practised and current principal and interest instalments arrangement.

"In this way, the monthly payment is lower, and this will help young adults to buy their first home," he added.

Allstones established in 2000 is engaged in property development, investments and real estate management services. — Bernama