Mortgage Loan

Malaysia’s property market in 2016: What to expect & predictions

INDUSTRY EXPERTS Warrick Singh Director of Business Development/Training of Asian Realty Sdn Bhd, Asian Land Auctioneers Sdn Bhd/Starfish Training Sdn Bhd  As we move into 2016, the ‘cloud of uncertainty’ hanging over the Malaysian economy would settle somewhat preceding several recent capital measures, such as the purchase of Malaysian bonds, intra-trade in Chinese Renmimbi instead of US Dollar and the offer of RMB50 billion of a protected Chinese capital market. Also, the development of the LRT/MRT lines which enhances connectivity to Greater Klang Valley including Seremban, Rawang and Klang will bode well for the residential and commercial property market. Malaysia generally has a young population where 80% of Malaysians are below the age of 50, which means the demand for houses is only...

HBA Maintains Easing Lending Guidelines is not the Solution to the Inaccessibility of Affordable Housing Loans

  PETALING JAYA: Relaxing banks’ lending criteria is not the solution to address the issue of access to affordable housing loans, said the National House Buyers Association (HBA) secretary-general Chang Kim Loong. “The current problem is that house prices are too expensive in relation to the buyers’ income. This has resulted in some prospective house buyers having their loan applications rejected. However, the solution is not to relax lending guidelines but to find ways to lower property prices. The relaxation of lending guidelines will surely worsen the situation and speed up the road to a ‘homeless generation’ that HBA has been warning about for years,” he told SunBiz, addressing the Real Estate and Housing Developers Association’s (Rehda) call for banks to be less strict in their l...

Moneylender licence ‘ill-advised’ proposal

HBA says scheme will drag house buyers deeper in debt THE National House Buyers Association (HBA) views with grave concern on the statement by the Urban Well-being, Housing and Local Government Minister Tan Sri Noh Omar that eligible housing developers can now apply for moneylenders licences to provide loan facilities of up to 100% to property buyers. Instead of assisting house buyers get a “soft loan”, it seems that house buyers are dragged into deeper debts unwittingly. Such a “scheme” will only bring more harm than good and we will attempt to elaborate why. Interest rates The effective interest rate for a conventional housing loan, from banks and financial institution, ranges between 4.6% and 5% depending on various factors such as the amount borrowed, risk profile of the borrower, dura...