KUALA LUMPUR: The housing and local government ministry has proposed that banks take into account all other incomes of housing loan applicants.
This is to address the high rate of rejections of applications from people in the middle- and low-income groups, minister Zuraida Kamaruddin said today.
She said the suggestion might provide for better credit rating flexibility, especially with regard to the applications for housing loans from the B40 and M40 lower-income groups.
“Although the applicants state their main income, it would be appropriate to consider their second or third incomes (without a salary slip), such as from a business, to determine the criteria for repayment of the loan.
“Taking into account their main and supplementary incomes may provide a flexibility to enable them to qualify for the loan,” she told Bernama in an interview.
Zuraida said another proposal would be to apply the “rent-to-own” method for the applicant to rent the premises and then consider his or her eligibility to obtain a loan to purchase, based on the salary projection.
The ministry has already held a meeting with the finance ministry and further discussions on the mechanism would be held with Bank Negara after Aidilfitri, she said.
Streamlining affordable housing schemes
On another matter, Zuraida said the ministry would expedite efforts to streamline all government affordable housing schemes through the proposed Affordable Housing Council to be set up under the ministry in August.
“After the government approves its inception, all affordable housing agencies, such as Perumahan Rakyat 1Malaysia (PR1MA), Syarikat Perumahan Negara Berhad (SPNB) and Rumah Mampu Milik Wilayah Persekutuan (Rumawip), would be streamlined and centrally administered for easier management.
She said that once the adjustment had been made, the projects would be renamed to replace the 1Malaysia branding that had been dropped by the Pakatan Harapan government.