PETALING JAYA: The proposal to cut housing loans by 10% from the current cap of 90% should only be imposed on houses costing over RM500,000, said MCA president Datuk Seri Dr Chua Soi Lek.
He said this was to ensure that the low and middle-income groups could afford to own houses.
“Buyers who purchase houses below RM500,000 should be allowed some flexibility in choosing whether to take the proposed 80% or the original 90% loans,” he said in a press statement yesterday.
A flexible loan cap based on house prices, Dr Chua said, would better protect house buyers, although the proposed loan cap would help stabilise house prices especially in some parts of the Klang Valley and Penang.
“I urge Bank Negara to conduct a thorough study before implementing the new measure to ensure healthy growth in the housing industry,” he said.
THE STAR (Tuesday September 7, 2010)