MBSB Bank inks mortgage deal with Cagamas SRP

MBSB Bank president/CEO Ahmad Zaini Othman (second from left) and Cagamas president/CEO Chung Chee Leong (second from right) at the signing ceremony.

PETALING JAYA: MBSB Bank Bhd has signed an agreement with Cagamas SRP Bhd on the Mortgage Guarantee Programme offered by Cagamas and MBSB’s participation in affordable housing scheme Skim Rumah Pertamaku.

MBSB Bank president and CEO Ahmad Zaini Othman said the deal would help improve the bank’s capital adequacy ratio and free up more capital for financing.

“Under the Skim Rumah Pertamaku, MBSB Bank will be able to provide up to 100% financing to young adults below 40 years of age, and obtain guarantee from Cagamas SRP for the first 10% of the financing originated,” he said at the signing ceremony on Wednesday.

Cagamas president and CEO Chung Chee Leong meanwhile said the agreement marked a new phase in its initiatives with MBSB as the bank would now have access to its Mortgage Guarantee Programme.

MBSB Bank is involved in nine projects under PR1MA with a gross development value of RM1.61 billion. It is also involved in 15 projects under PPA1M worth RM7.5 billion and six projects under Rumawip worth RM600 million.

Skim Rumah Pertamaku was launched on March 8, 2011, to help young adults with a gross income not exceeding RM5,000 per month and joint borrowers with a gross individual income not exceeding RM10,000 per month obtain up to 100% financing from participating banks for their first home.

MBSB Bank is one of 23 financial institutions participating in the scheme.

Some 7,920 loans amounting to RM1.6 billion have been approved by the participating banks and guaranteed by Cagamas SRP since the launch of the scheme.