Developers can apply to provide loans to house buyers

Urban Wellbeing, Housing and Local Government Minister Noh Omar says the interest rate for these money-lending licences will be capped at 12 per cent a year for borrowers with collateral and 18 per cent for those without.

PETALING JAYA - Developers can apply to provide housing loan facilities to property buyers, effective today.

Urban Wellbeing, Housing and Local Government Minister Noh Omar said the money-lending licences will be issued by the ministry under the Money-Lending Act 1951 (Amendment) 2011.

Noh said they are allowing developers to provide housing loans of up to 100 per cent to overcome difficulties faced by buyers in securing bank loans.

“This proposal is a win-win solution for both developers and house-buyers,” he said in his keynote address at the 19th National Housing and Property Summit here today.

The initiative is open to everyone, including second-time home buyers.

Noh said house buyers who fail to secure adequate loans for their properties can seek financing under this scheme.

He hoped the initiative will make it easier for buyers to buy their dream homes.

The interest rate for these loans will be capped at 12 per cent a year for borrowers with collateral and 18 per cent for those without.

“It is up to developers who they want to provide financing to.”

According to recent statistics by the National Property Information Centre (Napic), 18,908 (23 per cent) of the 81,894 units of residential and commercial properties launched in the first quarter of 2016 – with a value of RM9.4 billion – had yet to be sold.

On another matter, Noh also accused Selangor Menteri Besar Azmin Ali of misleading the public on the “cheaper” prices of small office home office (Soho) and small office versatile office (Sovo) in the state, by withholding information.

Noh, who is also Selangor Umno chief, said Azmin should specify details on the size of these units.

“Azmin said the prices of these homes have been slashed from RM400,000 to RM200,000, and said with the reduced prices, what’s the use of giving Bumiputera discounts.

“I want Azmin to specify the size of the units. Not doing so can cause confusion among the people,” Noh told a press conference later.

Selangor recently extended the 10 per cent discount on property purchases, currently enjoyed by Bumiputeras, to all buyers of serviced apartments, Soho and Sovo units.