Government Proposes Lowering Housing Loan Interest Rate

National Housing Policy 2.0

It was reported that the government, via the National Housing Department, has proposed lowering the current housing loan interest rate.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the proposal was discussed at the High Level Committee meeting which he had chaired.

The current interest rate for housing loan was about 4.65 %.

Zahid said a more competitive interest rate was needed as some house buyers found it difficult for them to secure loans. The government wants to reduce the people’s financial burden to own a house.

Similar interventions by the government had been made in the past to cap interest rate of housing loans for low and medium house buyers.

Zahid also said the committee had agreed to review the decision to review the temporary freeze of approval for RM1milion and above real estate projects.

Based on National Property Information Centre (Napic) 2017 data, 12.06% or 2,518 units worth RM1 million and above were unsold last year.

Second Finance Minister Johari Abdul Ghani had announced last year that the cabinet decided to freeze luxury property developments from 1st Nov 2017.

This was following a Bank Negara Malaysia (BNM) report, warning that unsold residential properties were at a decade-high level.

Rehda and Fomca laud the proposal to lower housing loan interest rate as it will promote homeownership among a large segment of the population.

In describing the proposal as timely, Rehda president Datuk Seri FD Iskandar said the move would benefit Malaysians from the low and middle income groups who struggled to purchase their own homes due to the current economic climate.v

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