KUALA LUMPUR: The government’s proposal to lower the current housing loan interest rate will
promote homeownership among a large segment of the population, said the Real Estate and Housing Developers’ Association of Malaysia (Rehda) today.
In describing the proposal as timely, Rehda president Datuk Seri FD Iskandar said the move would benefit Malaysians from the low and middle income groups who struggled to purchase their own homes due to the current economic climate.
“The proposal, which Rehda had previously mooted on several occasions, also speaks volumes about the government’s commitment to fulfil the national housing agenda.
“Should it come into fruition, it will greatly increase the purchasing power of Malaysians especially those in the M40 and B40 income groups, and help them buy the home of their dreams.
“We foresee that this will improve the economic status of the rakyat given that properties are assets that increase in value,” he said.
FD Iskandar said despite the benefits of lower housing loan interest rates, the ease of end-financing was still imperative and must meet the objective of the move.
“The main obstacle faced by buyers, especially the younger generation purchasing for the first time, is attaining loans.
“If this obstacle is correctly addressed, combined with the lower interest rate proposal, more homebuyers will be able to realise their dreams.
“Rehda hopes the cabinet will seriously consider the proposal once it is tabled, and wishes that Bank Negara Malaysia would also give its support.
“We are committed in our efforts to promote homeownership, and we are open to any discussions required to facilitate the process to ensure that the proposal becomes reality,” FD Iskandar told the New Straits Times today.
Federation of Malaysian Consumers Associations (Fomca) president Datuk Dr Marimuthu Nadason said the proposed reduction of housing loan interest rates could benefit low-income civil servants.
“Even though the current loan interest rate of about 4.65 per cent is already a great deal for house buyers out there, but of course it would be better if the rate can be lowered down to maybe a minimum of 2.5 to 3 per cent.
“The reduction will surely serve government servants. Some of them might not have enough savings to purchase a house.
“If the rate keeps on decreasing in the future, the chances of people purchasing their own house will be much higher,” said Marimuthu.
The government, via the National Housing Department, had proposed to lower the housing loan interest rate. The matter was discussed during a High-Level Committee meeting chaired by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi on Thursday.
