The National Mortgage Corporation of Malaysia (Cagamas Bhd) plans to introduce a shared equity home ownership scheme for the middle 40% (M40).
The Edge quotes Cagamas president-cum-CEO Datuk Chung Chee Leong, who said: “Those in the M40 group with good credit standing but without sufficient savings for the required deposits are unable to buy their desired homes even if they take up 90% home financing from the banks. We believe this (shared equity home ownership) will help address the gap.
“Such schemes are essentially a partnership between the government (or relevant agencies), banks and homebuyers in those parts of the world (including Australia and UK). They allow homebuyers to buy homes without being burdened by a substantial down payment and high monthly instalments.”
Chung says some of the benefits are lower upfront costs for homebuyers, and an affordable monthly mortgage repayment.
