Cagamas Holdings Bhd is looking at new business initiatives that would allow people in the lower middle 40 percent group who have insufficient savings, but possess good credit standing to own houses.
The corporation’s chairman Nik Mohd Hasyudeen Yusoff stated that the initiatives would assist the group in putting up the required deposit, “thus promoting home-ownership among Malaysians”, reported The Star.
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He believes that the national mortgage corporation can achieve its social objectives of supporting government-initiated home financing schemes, to ensure that house borrowers in the bottom 40 percent group (B40) and lower M40 have access to financing.
During the financial year ended 31 December 2018, the group, which includes Cagamas MBS Bhd (CMBS), Cagamas SRP Bhd (CSRP) and Cagamas, made a profit of RM416.5 million compared to RM414.3 million in 2017.
Cagamas’ unit Cagamas Bhd also achieved its highest total aggregate issuances of RM15.8 billion since 2008.
Meanwhile, Cagamas president/CEO Datuk Chung Chee Leong pointed out that even though there is a demand for affordable houses, the country still has around 30,000 unsold units. He believes this is caused by a mismatch of demographics, pricing and locations.
The inability to acquire loans is another big factor for the CEO.
“Reasons for applications being rejected include high indebtedness of the borrower, the high gearing that they already have, or they are deemed as not credit-worthy to own property.”
“Although they are keen to buy, they cannot afford it,” he added.
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