Cagamas to introduce shared equity housing scheme

Cagamas says it is looking at programmes in the United Kingdom and Australia to replicate.

KUALA LUMPUR: National mortgage corporation Cagamas Bhd is working towards introducing a shared equity programme for housing, said its president and chief executive officer Chung Chee Leong.

Chung said Cagamas is looking at how to replicate programmes that had been implemented in the United Kingdom and Australia to fit the Malaysian housing scenario.

“We hope we can get the blueprint ready by the end of this year,” he told reporters on the sidelines of a Cagamas and World Bank Group conference on affordable housing here today.

Today is the first day of the two-day conference titled Constructing and Financing Affordable Housing Across Asia.

Housing and Local Government Minister Zuraida Kamaruddin said that under the programme that has been proposed to her ministry, Cagamas will provide a 20% deposit from the buyer’s side while the remaining 80% is provided by the bank.

She said there will also be alternative financing whereby Cagamas will help to guarantee up to 100% of the price of the house.

“We hope this proposed scheme can help the bottom 40% (B40) group who have not been able to obtain loans from financial institutions previously,” she told the conference.

On the rent-to-own scheme that is currently in place, Zuraida said the ministry is looking for investors, including foreigners, interested to become financiers to pay for a lease period of three to five years.

The financiers will be considered as “absentee investors” during the construction period of three to three-and-a-half years.

“They will park their money into Cagamas first before it is distributed,” she said, adding that parties from South Korea, China and the Middle East have shown interest.