PETALING JAYA: Housing minister Noh Omar has urged banks to consider providing full housing loans without a down-payment instead of providing only 70-80 per cent of the purchase price.
“It would be difficult for people to cough up the remaining 20 per cent,” he said today. “Even a house costing RM300,000 would be expensive, as the buyer would be required to come up with RM60,000.”
His suggestion was made in a speech to open the Malaysia Property Exposition organised by the Real Estate and Housing Developers’ Association.
Last month, in another speech, Noh Omar had courted controversy by suggesting that property developers be allowed to lend money to house-buyers.
In his speech today, he questioned why banks had difficulty in giving full loans. He said many houses were unsold after completion because buyers had problems in getting loans.
“How to get a home without a 20 per cent down payment?” Noh said, according to NST Online.
He urged banks to complement the government’s efforts to help people to buy their first home.
He urged banks to work with Rehda’s 1,400 members for solutions on helping more people get on the property ladder, and also urged more developers to build their houses first and sell them later.
A mere 14 housing developers had agreed to do so, the report said.