PETALING JAYA: Strict conditions imposed by banks on home loan applicants are the biggest barrier for home ownership despite the government efforts to waive stamp duty fees for buyers under the Home Ownership Campaign (HOC), the Real Estate and Housing Developers’ Association (Rehda) said today.
Its president Soam Heng Choon said banks should be able to measure an applicant’s ability to repay the loan by not just the debt-service ratio but by looking at the other aspects of the loaner financial background.
“A 25-year-old who just started working might not be eligible for a loan but banks must take other factors into consideration such as parental financial support. Banks should be more robust at credit profiling,“ he said at a press conference during HOC-Mapex 2019 here.
HCO-Mapex2019 is a three-day property expo which will begin on April 26. It will feature 72 developers and showcase properties in the Klang Valley, Johor, Negri Sembilan, Kelantan and Penang.
The expo will see participation by government agencies such as Rumahwip, Lembaga Perumahan Hartanah Selangor (LHPS), Housing and Strata Management Tribunal, Public Sector Financing Board, Credit Counselling and Management Agency, the National Housing Department and the Employees Provident Fund.
The expo will also be joined by seven financial institutions including Maybank, CIMB Bank, Hong Leong Bank, Hong Leong Investment Bank, Public Bank, RHB Bank, United Overseas Bank.
The association said it aims to sell properties worth more than RM3 billion during the six-month duration of HOC.
HOC was announced by the government during the Budget 2019 presentation. It offers stamp duty waivers for properties priced between RM300,000 and RM1 million and 3% stamp duty for properties priced between RM1 million and RM2.5 million.
The campaign also offers 0.5% stamp duty on all bank loans for properties up to RM2.5 million. All home buyers are eligible for the rate, regardless of whether they are first-time buyers.
HOC-Mapex 2019 will start from 10am until 9pm at Mid Valley Convention Centre, Kuala Lumpur.