So I was wondering what is happening in the banking sector on the handling of real estate/ properties of Malaysia under the value of RM 500,000 in the year 2014?
This is what I found out:
KUALA LUMPUR: All commercial banks must have a standardised documentation for conventional housing loan and home financing agreements involving a principal sum of RM500,000 and below.
Bank Negara Malaysia (BNM) said on Friday this would take effect from Jan 1, 2013.
“The primary objective of this initiative is to enhance borrowers’ understanding and comparability of the key terms and conditions of the loan agreements, including the responsibilities and obligations of borrowers and financiers under such agreements,” said the central bank
BNM said banking institutions would have to adopt this template for all conventional housing loan and home financing agreements offered to individuals for the financing of residential properties valued at principal sum of RM500,000 and below.
It explained the principal sum referred to only the loan amount for the purchase price of the residential property.
It added the loan or financing could however extend to cover renovation costs, mortgage reducing term assurance (MRTA) or such other insurance premium as may be permitted by the banking institution and legal fees incurred in connection to the purchase of the property.
BNM said this initiative was a collaboration between the central bank, PEMUDAH and the financial industry to enhance the efficiency of business processes and improve the quality of service delivery in the financial services sector.
- Malaysia Real Estate News
The Star
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