Urban Wellbeing, Housing and Local Government Minister Abdul Rahman Dahlan wants Bank Negara to reconsider its housing loan terms, to allow those with no documented fixed income to buy low-cost government housing.
He said just because someone doesn't have a monthly pay slip, it should not disqualify that person from obtaining a housing loan.
"Just because they seem to be unable to pay the loan because they have no fixed income, just selling char kuay teow by the roadside, I hope Bank Negara with all its wisdom, relook into this.
"Use their discretionary power and understand that this is bigger than buying and selling. It’s a national agenda to empower the poor, grant them more assets," Rahman told the media at the Parliament lobby today.
He said he has already been in talks with Bank Negara about this, and understands why the banks are strict.
However, Rahman argued that banks will take very low risks, as the houses, such as those under the People's Housing Programme (PPR), cost far less than what they are actually worth.
"The cost of the house is around RM150,000 but we are going to sell it at RM35,000.
"Even if the guy defaults, you have RM150,000 worth of a house against a loan of only RM35,000. Surely that means something, doesn't it?" he asked.
The minister said he would continue engaging with the central bank and convince them to revise its housing loan policies.
Rahman had earlier discussed the matter in the Dewan Rakyat in his winding-up Budget 2016 debate.
The issue came after Azeez Abdul Rahim (BN-Baling) raised concerns that those who make a living from agriculture, night markets, selling goods online and others, without fixed income, cannot get housing loans.
Earlier today, Minister in the Prime Minister's Department Azalina Othman Said said Malay dignity and property ownership are being challenged by unaffordable homes, namely in opposition-held Penang and Selangor. -Mkini
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