Although Perbadanan PR1MA’s Skim Pembiayaan Fleksibel (SPEF) did not completely address all the problems faced by homebuyers, experts believe the scheme is a good start to helping homebuyers secure housing loans, reported the New Straits Times.
Siva Shanker, chief executive officer of PPC International, said the rate of housing loan approvals versus applications stands at 50.2 percent, which means that half of the loan applications are not approved for various reasons.
“Even with the scheme, if homebuyers are not qualified to get loans, they would still not get them…But, I think it is a good initiative by PR1MA to collaborate with local banks,” noted Siva, who is also Malaysian Institute of Estate Agents immediate past president.
With the eligibility criteria exclusively set for first-time buyers, the SPEF is a win-win solution as it “improve the eligibility issue faced by PRIMA homebuyers of not being able to secure enough financing under our conventional package,” explained U Chen Hock, retail banking executive director at RHB Banking Group.
“However, it will not resolve the issue completely as the bank will continue to perform the necessary credit underwriting due diligence, as per existing guidelines.”
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Islam Malaysia Bhd, explained that it is still paramount to assess the creditworthiness of potential borrowers to ensure that they can “service their mortgages in a timely manner and, at the same time, enjoy good living conditions”.
Nonetheless, the loan rejection rate is expected to decline significantly with the introduction of the new scheme, which provides buyers with total loans of between 90 and 100 percent.
“This scheme can resolve some of the difficulties faced by first-time homebuyers interested in obtaining loans to buy and own houses,” said Veena Loh, research and consultancy associate director at JLL Property Services (Malaysia) Sdn Bhd.
“Normally, an applicant with a monthly income of RM3,000 is only eligible for a loan of about RM187,000,” noted Loh.
Under the scheme, the applicant will be eligible to more than RM295,000 loan as the applicant’s accumulated sum in the EPF (Employees Provident Fund) Account 2 will be taken into account.
Image sourced from PR1MA
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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