How are you doing?
We are here from www.malaysiahousingloan.net have an update on the latest financial stir.
Yeah, I think you know what we are talking about.
And I do know, it’s may not affect you too much but may to some.
So, let’s roll.
On 5th July 2013, Bank Negara had announced a surprise measure steps to curb the current issue.
These measures aimed at curbing excessive household debts and to reinforce responsible lending practices by key credit providers.
The credit providers are all financial institution regulated by Bank Negara, credit co-operatives regulated by the Suruhanjaya Koperasi Malaysia, Malaysia Building Society Berhad ( MBSB) and Aeon Credit Service Berhad.
The first one…
a) Maximum Tenure of 10 years for financing extended for personal use.
- Previously, personal loan financing can be up to 25 years.
The second one…
b) A maximum tenure of 35 years for financing granted for the purchase of residential and non-residential properties
- Previously, most banks are offering 40 years to 45 years of tenure for housing loan.
The last one…
c) A prohibition on offering pre-approved personal financing product.
The above measures take effect immediately, compliment the earlier measures introduced since 2010.
The financing tenure will only apply to loan application submitted after 5th July 2013, Friday.
Some of you had call me and said, “We are so lucky to get approval prior to this measures, thank you guys “
Yeah, you guys are damn lucky.
Okay now, let’s discuss about the measurement.
Will it curb the high rising of property or stop people from buying?
From our opinion, it’s may not stop people from buying but definitely will give new perspective to look at and tighten bank policies which may end up many will fall out the requirement of debt service ratio.
If you do not know what is debt service ratio or a.k.a DSR. It’s just the calculation of commitment over income to check out whether you qualify for the loan.
While, if your instalment is high since the tenure is shorter, this will increase your DSR. When DSR is high, bank may not able to approve you loan.
When you cannot get loan, then you cannot buy house rite?
When most of us cannot buy house, the property prices will not hike tremendously. This will cool off the property market and reduce the household debt.
Bank Negara goal is to reduce the household debt, because for the past 5 years the household debt had increased at a strong pace, averaging at an annual rate of 12%.
Another new wind is blowing about the next measurement steps by bank Negara.
Perhaps the Developer Interest Bearing Scheme (DIBS) or the Real Property Gain Tax (RPGT)?
We shall wait and see…
if you guys out there need help with your loan or any refinancing.
Click the below link to contact us !
Till next time, take care.
Melissa & David.