By FARA AISYAH / Pic By TMRpic
The number of approved home loans might have increased in the past year, but many Malaysians are still not satis ed with the high interest rates that are imposed.
PropertyGuru Malaysia’s recent Consumer Sentiment Survey revealed that home- buyers are of the opinion that the current interest rates could be adjusted to levels that are more affordable in line with the current economic challenges.
The survey reported that 46% of the respondents find that interest rates charged on home loans are too high, while 31% think the charges are acceptable.
PropertyGuru Malaysia country manager Sheldon Fernandez said in a statement that while more loans are being approved, especially due to more joint loan applications, many consumers are declining these loans due to the margin of loan approved and the monthly instalments that need to be serviced.
“Banks are now approving more applications but, at times, the package offered is not attractive to consumers,” he added.
According to the data, 91% of the respondents stated that they will need a bank loan to secure a home, with 45% of them opting for 90% financing and 25% going for 70%-80% financing, while 18% would choose 100% financing.
The results also coincided with findings that the Malaysian property market had reached a more stable position with a gradual, but sustainable price appreciation compared to the steep rise in the past two to three years.
Given this scenario, Malaysians continue to face challenges in their pursuit of home ownership even though they are willing to transact.
Obstacles still remain for purchasers, especially for first-time homebuyers who are left with insufficient funds after paying their monthly instalments or meeting upfront costs such as stamp duties, legal fees and moving costs.
“There is a need to have a clear definition of what is an affordable property in terms of price, size, location and factoring in close proximity to the public transformation network,” Fernandez said.