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I just chat with a friend in banking line about this. Government is looking into possibility on developer provide in house loan to the buyer who cant get bank mortgage loan.

Our conclusion is that if government not accept the risk, they pushing it to developer. Do you think developer will accept? Unless its small amount (20% loan margin for those 70% loan margin cap buyer or higher interest rate. What do you think?

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if that's the case government don't accept the risk and push to developer, I don't think developer will accept as well, developer are not stupid either =,='' Do you know if any developer actually offer attractive loan rate compare to bank or anything? 

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yeap thats what I wanna say. Basically its not working and it wont work. Probably only for minority only. But Sunway have run for Sunway Mont previously, not sure hows it goes

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Yes, I share the same thoughts.  Developers are obtaining bridging loans for their new development.  The won't take the risk and don't have the extra funds to finance Purchasers.

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If bank think the borrower is high risk /cant sustain to make prompt payment for long term, does not want to approve their loan. I don't think developer willing to offer same interest rate as bank to issue loan to such purchase. housing loan interest rate more than 10% is not logic also since buyer cant afford to pay such installment. 

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Later they will legalize the illegal money lenders (tai yi lung) to provide housing loan to house buyers....

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Fitch: Malaysia's property developer lending 'could stoke risks'

KUALA LUMPUR (Sept 15): Malaysia's decision to grant money-lending licences to property developers could add to the risks associated with rising household debt, Fitch Ratings said.

In a statement today, Fitch said the scheme could result in higher debt among those with weaker credit scores.

"The scheme is likely to encourage unregulated lending to households with weak financial profiles, and could undermine the strength of the financial system, if not implemented prudently," Fitch said.

Last week, Urban Wellbeing, Housing, and Local Government Minister Tan Sri Noh Omar said the government was allowing property developers to apply for money-lending licences to help homebuyers finance their property purchases.

Noh said the interest rate was capped at 12% a year for borrowers with collaterals, and 18% for those without. He said the initiative was one way to reduce homebuyers' hardship in obtaining loans.

Today, Fitch said the country's household debt was still rising, and high by regional standards at around 89% of gross domestic product.

Fitch said leverage ratios were high among lower-income households.

"It is precisely those households with weaker financial profiles and poor access to bank loans that are likely to be targeted by developers. Moreover, developers have been told they can charge interest rates of up to 12% on loans backed by collateral, and up to 18% on unsecured loans, compared with an average home loan rate of around 4.5%," Fitch said. — theedgemarkets.com 

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is it enforce already?

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i dont think it is.. just proposal

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Nope not enforce and I dont think can force developer to accept it 

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Developer does not collect cash from depositor like bank, developer with good cash on hands may prefer to buy more lands, instead of provide loan to buyer.


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Developers can start applying for the money lending license under the Money Lender Act, so I think its enforced already gua. But coming to which developers will actually apply for it, we yet to see, hoho.

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No. Not yet enforce yet. 

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maybe developer to provide only a maximum allowable margin let's say 15%... on top of the bank margin of say 75%... which add up to 90% financing for the property purchase. Or simple bring back the DIBS scheme which lots of developer "virtually" mark up their selling price and sell at future prices. most of the time, the developer will help "pay" for the 10% down payment from their marked up selling price.

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