Bank Negara, please lower the lending requirements. (first-timers…)

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I seriously hope first-timers could really save their downpayment so that they do not need to beg any bank to lend them 100% loan or resort to some hanky-panky ways to buy their first property. I did. My brother did. My sister did and many of my friends did. I wonder why many people could not do this today. Oh… perhaps it’s because I am using a RM1299 smartphone and not a RM4,899 one? Perhaps because I am driving a 10-year old Persona and not a brand new B-Segment Japanese branded car which is said to save more fuel per km? Here’s that earlier article on saving money on fuel versus price. Anyway, for these first-timers, the government has spoken. They want Bank Negara Malaysia (BNM) to ease the rules for mortgages to help first-timers purchase their house.

Article in themalaysianreserve.com Finance Minister Lim Guan Eng said this with regards to the lending requirements. He said, “I still think the lending conditions are strict. We hope BNM can consider other avenues to facilitate the applications made by first-time homebuyers. The government has discussed with BNM on this and has mooted a progressive loan repayment plan for the bank to consider.” He added, “However, this is being reviewed. The central bank is mindful of the percentage of household debt which they consider as still high.”

Lim told the Dewan Rakyat yesterday, responding to a supplementary question by Datuk Mohd Salim Mohd Sharif (Barisan Nasional-Jempol). BNM has a RM1 billion fund for first-time home buyers and it has a lower rate and longer repayment period too. Lim said, “The lower financing rate and longer financing period can help improve borrowers’ ability to repay the loan by reducing monthly repayments. It will also help boost their purchasing power and increase their access to financing.” Please read more of what Lim said here: Article in themalaysianreserve.com

Okay, perhaps lower it by a little will not jeopardise the market since the amount is just RM1 billion. I am more worried if the amount is way bigger. Let’s face it. If the borrowers are of a lower quality and they stop paying and the government has to step in, the money which the government will be using will be the tax payers’ money yeah. Yes, I have been paying tax since 1998 when I started working yeah. So, I am definitely concerned with the potential of my money being used for anything in relation to bailout.

This is what someone who has made millions said about money management. Skip avocado toast and luxury coffee to be rich. Well, BNM is an independent organisation. They will know what’s best for the country for the long term. Happy applying to that RM1 billion fund yeah. Please do note that this is applicable while the funds last. Once the amount is fully loaned out, that’s the end of it. Unless of course more funds are made available. Happy understanding.

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