First time buyers wont default

Housing and Local Government Minister Datuk Wira Chor Chee Heung is confident that first time home buyers will not default on their loans under a scheme that does away with down payments.

He said that first time buyers can always extend the repayment period to the maximum if necessary.

He was commenting on the “My First House” scheme announced by Minister Datuk Seri Najib Tun Razak when presenting Budget 2011 under which first time buyers would be provided 100 per cent home loan financing for residential property priced below RM220,000. And they would not be required to pay the usual 10 per cent down payment.

Chor said: “The first time home buyers can extend the housing loan repayment period to the maximum which will help them to ease the burden.

“If the income of a household after minusing EPF and all that is still in the region of RM3,000, I think the husband and wife team (household), will still be able to own a house,” he told reporters after launching a Malaysia Building Society mortgage programme here today.

Chor said the housing loan under the scheme will be provided by Bank Simpanan Nasional.

MBSB Chief Executive Officer Datuk Ahmad Zaini Othman said the “MBSB Ultimate” is an exclusive mortgage programme offering attractive benefits.

It allows customers to choose the type of protection, offers high preferential saving rates, personal financing at the lowest rate in the market and loan tenure of up to 70 years.

Earlier in his speech, Chor urged the financial and property development institutions to support government initiatives by giving affordable lending rates and providing quality homes.

He said this would facilitate growth in both their industries.