Tougher mortgage rules introduced by Bank Negara in Malaysia will continue to negatively affect first-time home buyers, according to Datuk Othman Omar, Chief Executive Officer of Oxley Holdings Sdn Bhd.
During his term as the General Manager at Selangor State Development Corp, he noted that 70 percent of housing loan applications at his group are rejected as eligibility is now based on net income. Previously it was based on gross income.
Unless the Central Bank of Malaysia changes its rules on first-timers, this trend is expected to continue throughout 2014, Othman predicted
“Previously, first-time house buyers qualify for loans just above the border but now they do not qualify due to the loan-to-value ratio and the new credit assessment guidelines.”
“The ruling punishes the first-time home buyers seeking affordable homes more compared to the high-end property buyers,” he noted.
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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