Referring to a report in The Star today, HBA honorary secretary-general Chang Kim Loong said the initiative helps the lower income group to get the financing to buy their PR1MA homes.
The daily had reported PR1MA chief executive officer Abdul Mutalib Alias as saying that more than 15,000 Malaysians, who had been unable to secure bank loans despite being successful in their applications for PR1MA houses, will now get their homes thanks to the scheme.
According to Mutalib, until last year, 60% of successful home applicants had to forgo the PR1MA offer after their loan applications were rejected.
HBA called for PR1MA to ensure that this new scheme for the lower income group is not available to all.
“HBA hopes that this financing scheme is only reserved for ‘First Time House Buyers’ as PR1MA has already allowed Second Time House Buyers to buy PR1MA properties,” Chang said in a statement.
The scheme was a measure tabled in Budget 2017 to reverse the trend of banks rejecting the loan applications for successful PR1MA applicants. It became effective from Jan 1.
In announcing the measure during the Budget 2017 speech in the Dewan Rakyat last October, Prime Minister Najib Razak said with the new scheme, financing will be made easier and more accessible to buyers with a total loan of 90%-100%.
“For instance, an applicant with a monthly income of RM3,000 will only be eligible for a loan of more than RM187,000. Through this special financing scheme, the applicant can get a loan of more than RM295,000,” Najib had said at the time.
The scheme is a collaboration between the government, Bank Negara Malaysia, Employees Provident Fund (EPF) and four local banks, namely Maybank, CIMB, RHB and Ambank.
Resale of PR1MA homes
Meanwhile, HBA is pleased that PR1MA has supported a proposal by the association for the five year moratorium period on the resale of houses built under the PR1MA programme to commence from the date of vacant possession, and not from the date of the signing of the purchase agreement by the first-time buyer.
“A moratorium of only five years, with the construction period taking up to 36 months will mean that the owner can sell it off within 24 months. That is just slightly more than a year after vacant possession,” Chang said.
He also suggested that any subsequent sale of PR1MA homes be subject to the same conditions as that which is applied to the original buyer, that is only low- to medium-income owners and first-time buyers are eligible.
“This is to ensure the such PR1MA units are not purchased en-bloc by property speculators and rented out again at very high rentals thus depriving future generations of lower and middle income group buyers
“Also, approval must come from PR1MA before any subsequent sale is made,” he said.
Chang appealed to the government to take proactive measures and be vigilant to prevent the threat of a “homeless generation” from taking root due to the current high property prices.