Maximum Loan Tenure Could be Extended up to 40 Years for Affordable Home Buyers

PETALING JAYA – Bank Negara Malaysia (BNM) is proposing a more flexible loan package with flexible interest rates and an extended maximum loan tenure for affordable home buyers, said Housing and Local Government Minister Zuraida Kamaruddin.

“We have engaged with Bank Negara and a few banks during a few sessions and Bank Negara has come up with some more flexible and relaxed terms with regards to loan application and approval. One of it is the extension of maximum loan tenure from the current 35 years to up to 40 years,” she told reporters at a press conference after the opening of the Housing Conference 2018 today.

Currently, the maximum loan tenure is 35 years or or until the borrower turns 70 years old, whichever is earlier.

There are also flexi loans, flexi interest rates and a step-up scheme, which allows the amount of repayment to commensurate with the growth of the borrower’s income over the time, she added.

“This is something that is easier and more relaxed for the homebuyers so that they can plan themselves. With this sort of approach, we hope Malaysians can change our mentality and know how to plan [according to their] financial capability,” she continued.

“As an industry, we cannot remain static. We must know the needs of the market and respond positively to the demand of our customers. Our doors are always open for discussion, let us know how we can assist the industry to enhance efficiency,” she said.

Moving forward, the ministry will be working towards consolidating data and information and at the same time address data gaps that may exist, so that the policy makers, authorities and stakeholders can all count on an efficient centralised data or property information system that is effective, accurate, useful and timely, she said.

“The government will continue to provide strong support towards this important economic sector and we expect the industry to reciprocate by working closely together with us and play your part in order to satisfy the needs of the nation and make quality and affordable home ownership a reality,” she concluded.