Easier process to purchase homes soon

The PPAM Ike Village at Kota Samarahan. Photo: Ramidi Subari

KOTA SAMARAHAN: The Housing and Local Government Ministry is drawing up new ways to ease the process of obtaining financial loans for youth and first-time home buyers in the country.

Its minister Datuk Seri Reezal Merican Naina Merican said his ministry, through Bank Negara, is forming a panel of experts to scrutinise the best ways for youth to enter the realm of real estate and home purchasing.

“The panel of experts involves representatives from Bank Negara, World Bank, Khazanah Research Institute, housing developers and former high-ranking civil servants.

“This is an ongoing process as we are currently in the process of selecting the panel. Insyaallah, the first meeting will be held by either next month or in January 2022,” he told reporters after officiating at the PPAM (Malaysian Civil Servants’ Housing) Kota Samarahan @ Ike Village here on Thursday (Nov 25).

He said one of the constraints faced by young home buyers is having issues related to their Central Credit Reference Information System (CCRIS) data.

The panel aims to solve this issue among others, he said, and the result of their discussion will be proposed to related agencies to be taken as a solution.

“But in terms of evaluation, there are banks that have started to migrate from conducting conventional analysis of looking into CCRIS statements, debt servicing ratio and so on, to implementing psychometric analysis.

“Through this, we are able to know one’s spending patterns which can guarantee their financial stability without referring to their pay slips.

“This is our initiative of shifting our focus from looking into people who are able to pay, to people who are willing to pay,” he added.

Apart from that, Reezal said his ministry is also implementing various initiatives to ensure that there are houses available for purchase for eligible Malaysians.

“These include the implementation of certain criteria such as PPAM, which can only be bought by first-time home buyers.

“This is a prime example of the ministry’s initiative to ensure that there is a supply of new homes for the younger generations,” he added.