Moneylending license to developers with deep pockets? This is an issue which is still very popular and in fact it should be decided soon, whether going ahead or nothing happens. I shared about the proposal earlier here. No loan? No worry. I (developer) lend you Now, the Real Estate and Housing Developers’ Association Malaysia (Rehda) has also waded in with their views which technically represents majority of all developers here in Malaysia. Its president Datuk Seri FD Iskandar said that the moneylender licence can be capped at RM500,000. It would be targeted at genuine homebuyers.
He shared that from REHDA’s checks, many buyers have problems because the loans from the financial institutions are only up to 80 percent. The average that is being approved is between 75 to 80 percent. This is why many of these buyers would have to look for the remaining from other sources and this moneylending by developers will be able to assist them. He also shared the scenario of second-time house buyers who genuinely want to upgrade who are not covered by government schemes like MyHome and MyDeposit. Besides that, FD Iskandar also said that this scheme will not be applicable for all developers because there are risks involved and not all developers have the balance sheet to do it.
I think this is not easy to implement, even assuming the cabinet approves this and the law actually provides for this. There are many questions which remain unanswered. In fact it may be better that genuine buyers buy what they can afford instead of trying to aim at something they could not. Actually, not buying that car which needs extra RM300 car loan payments per month would already allow the mortgage payment affordability to be up too, immediately. Happy following.
written on 15 Sept 2016
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