GEORGE TOWN: Real Estate and Housing Developers Association (Rehda) is urging financial institutions to subsidise the property loan interest rates to help low-income earners own their first house.

Its Penang chairman, Datuk Jerry Chan, said the current rates do not benefit the low-income earners as they are high.

He said the poor are currently paying the highest interest rates as the banks fear they may not be able to pay the monthly instalments on time.

“The federal government and Bank Negara Malaysia should look into this as most of the poor buyers fail to get their loans approved,” Chan told reporters after the Chinese New Year gathering on Wednesday.

He said the government should help first-time buyers as the Perumahan Rakyat 1Malaysia (PR1MA) housing scheme alone will not be sufficient to cope with demand.

“The property prices will continue to rise due to inflation and with the current loan rates, the poor will not be able to own their first house,” Chan said.

The previous budget did not address the needs of first-time buyers, he added. — Bernama


This article first appeared in The Edge Financial Daily, on February 14, 2014.

 

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