Penang’s Proposals to Bank Negara on housing loan rejection

“Imagine for every 10 people applying for bank loans  only three applicants obtained approval. 

“This completely nullifies our efforts to provide adequate housing for Penangites.

“It makes all our efforts in vain.

“This has been a very long outstanding problem … we need to sit down and address the issue with Bank Negara soonest possible,”  Jagdeep said at a Press briefing in Komtar recently.
 

Jagdeep knows what he was talking about. 

He has been tackling this problem over the years ever since he helmed the housing portfolio.

If he has his way, Jagdeep would like to see all first-time house buyers have a roof over their head and that the state government.

Allow me to be a bit personal here. That go-all-out effort signature-trait in helping people always runs deep in Jagdeep’s family.

I have been a close family friend of the late Mr Karpal Singh for almost 35 years and have seen it all through how they went all out to help the ordinary folks.

Being a family of great lawyers in the country, they, including Mr Karpal, had always taken on legal cases pro bono for the deserving ones.

Even though he no longer practices law now, Jagdeep,  is still continuing the family trait by giving his best in helping deserving Penangites to have a house of their own. He has never stopped short in perpetually urging Bank Negara Malaysia to review its criteria for house loans for first-time home owners.

And he has got strong support.
 

Five parties, three chambers of commerce and two development associations have joined forces with him on this. 

The five are Real Estate and Housing Developers Association (Rehda) Penang, International Real Estate Federation (FIABCI)  Malaysia, Penang Malay Chamber of Commerce, Penang Chinese Chamber of Commerce and Penang Indian Chamber of Commerce.

In a signed statement addressed to the Housing and Local Government Ministry, the five expressed their concern about the rate of housing loan rejection, particularly for low-cost, low medium-cost and affordable housing.
 

Jagdeep added that this issue was raised by former Chief Minister Lim Guan Eng and himself during the state assembly even way back in 2016.

“After reaching a unanimous agreement, a joint motion was forwarded to former Prime Minister Datuk Seri Najib Tun Razak and Bank Negara Malaysia.

“However, there was no follow-up,” he said.

An official letter would be send to the Housing and Local Government Minister Zuraida Kamaruddin to follow up on his previous meeting with her where they had discussed the matter.
 

Believe it or not, the banks in our country had time and again denied that it was difficult to get housing loans approved.

Among the reasons they cited for the housing loan rejection include insufficient income to support debt repayment, adverse credit history, and inadequate income or financial documentation.
 

Is it that difficult to get a housing loan from the bank now?
 

What’s your say on this?
 

Next: Why I dislike dealing with the banks.