Bank Negara: Housebuyers can get help to restructure loans

Bank Negara: Housebuyers can get help to restructure loans
11/01/2009 The Sun by Humayun Kabir

IPOH (Jan 11, 2009): House buyers who have difficulty repaying their housing loans can turn to Bank Negara for help if their banks do not restructure their loans for a longer period in light of the economic downturn.

Deputy Finance Minister Datuk Ahmad Husni Hanadzlah said banks are expected to be flexible in their restructuring of housing loans and offer borrowers longer loan periods.

He said banks should consider lengthening the housing loan repayment period, which would result in a win-win situation for both the banks and borrowers as loan repayments would not be defaulted.

However, borrowers can approach Bank Negara for assistance in rescheduling their housing loans if their banks do not entertain their requests or if they are not happy with the loan terms.

Husni, who is also Tambun MP, said today after visiting the site of the reconstruction of the bridge over Sungai Pinji at Bandar Baru Putra which the Ipoh City Council had put on hold last November.

The bridge connecting both sectors of Bandar Baru Putra had collapsed due to erosion of the river banks during a heavy rainfall recently.

Housing and Local Government Minister Datuk Seri Ong Ka Chuan was reported on Saturday as saying that the government would pump in RM1.2 billion under its RM7 billion stimulus package to spur the growth of the housing industry.

Ong was quoted as saying the pro-active measures his ministry had proposed included extending housing loan repayments for up to 30 years and reducing housing stamp duty.

He also said his ministry had introduced a guaranteed credit scheme with a RM100 million fund for house buyers who could not provide documental evidence of their income.