PR1MA end-financing scheme needs to be reviewed further

KUALA LUMPUR: The 1Malaysia People's Housing Programme (PR1MA) end-financing scheme needs to be reviewed further said Parti Amanah Negara (Amanah) youth wing chief Mohd Ammar Attan.
"Through our survey,we found that PR1MA purchasers will be forced to accept a higher interest rate of 4.75% as opposed to the general market rate at 4.45%.
"Based on an analysis conducted, it is found that if a house costs RM400,000 and the loan is for 35 years, then the monthly payment will as high as RM75. In that period, purchasers would have paid almost RM32,000 more," he said in a news conference held at the party's headquarters' today.
He added that through the housing scheme, the debt service ratio may be increased and would cause purchasers to manage heavier debt.
"Additionally, purchasers can access through the EPF's Account Two to pay the monthly debt instalments. This meant that 30% of the EPF's contribution will be used to settle it.
"This will result with purchasers having 30% lesser when they retire. They will not be able to access the Account Two until the loan is settled," he said.
He added a proposal and meeting with the Urban Wellbeing, Housing and Local Government Ministry will be in two week's time.
Recently, the government announced a scheme that allows purchasers to pay the monthly interest for the first five years which is meant to enhance home ownership.
This was in response to some 15,000 applicants who were unable to secure bank loans after applying for the PR1MA houses.
The scheme, which came into effect on Jan 1, allows them to get a higher loan with lower monthly instalments that would allow them to afford the PR1MA homes.