The strict loan requirements adopted by banks are hindering some people from acquiring their own home even as they are eligible under the Rumah Selangorku programme.
Bernama reported that the Selangor government received 189,892 applications for the housing programme over the past five years.
Of these, only 24,243 received offer letters, revealed Housing and Urban Living Committee chairman Haniza Talha.
“Those who were successful were relatively low in number because of stringent financial conditions adopted by the banks,” she said.
“We have found that some people were eligible for the Rumah Selangorku houses but due to stringent bank requirements, their loan applications were not approved.”
With this, her committee is seeking alternative measures such as negotiating with various banks for them to offer home financing without stringent requirements, said Haniza.
Her committee also plans to talk with the Housing and Local Government Ministry (KPKT) for the joint implementation of a state-level “Rent To Own” programme, which is considered as the best platform for Selangor residents to own a home.
“It will help reduce the buyer’s burden where they don’t have to pay deposits and just pay rent to be eligible eventually to buy the house,” she said.
Meanwhile, Housing and Local Government Minister Zuraida Kamarudin stated earlier that the new “Rent To Own” residential financing scheme is set for launch in September.
The scheme, which especially targets Malaysians earning below RM3,000, will not require a deposit from the buyers and instead allow them to pay rent until they become financially eligible to purchase the property.