Consider giving full loans for property below RM1mil

AS feedback for Budget 2022, I suggest that financial institutions give full loans (100% end-financing) to purchasers of property priced below RM1mil.

This would help to stimulate the sluggish property market due to the prolonged movement control order since the outbreak of Covid-19 and also combat the practice of marking up the property’s transaction price.

In conventional practice, the “90% loan margin from market value for first and second housing loan, 70% for third loan...” is no longer relevant, as it can easily be circumvented by marking up the selling price of the property.

Marking up is done when the sale and purchase (S&P) agreement price is purposely adjusted to a price that’s higher than the actual value to help the buyer secure a property without using their own money.

Marking up has become a common practice among loan consultants, bankers and solicitors in order to stay competitive.

They would “shop” for an adjusted and fake market value to fulfil their client’s needs.

With new valuation firms being set up every year, marking up the market value can be done easily as long as a request is made.

The same thing happens in project sales where the market value of the property can easily be manipulated by developers.

The selling price would be marked up and the property buyer would then be given a full loan, attractive rebate, free legal fee, stamp duty and so on, or so it seems.

Allowing a 100% loan to the market value of a property will combat the practice of marking up and ultimately restore the pride and professionalism of real estate valuation.


Lunas, Kedah

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Mortgages; full loan


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