Take up long-term housing loans, buyers told

http://thestar.com.my/news/story.asp?file=%2F2010%2F10%2F23%2Fnation%2F7286176&sec=nation
PETALING JAYA: Home buyers are encouraged to take up two-generation loans and financial institutions should support the move.

“The most important thing is for the individual to own a house for his family to live in.

“If loan repayment is extended to the second generation, that means the family will remain intact,” Housing and Local Government Minister Datuk Chor Chee Heung told a press conference here yesterday.

He had earlier launched the MBSB Ultimate mortgage programme by Malaysia Building Society Bhd, which offers loans for customers up to the age of 70 years.

Chor said Budget 2011 encouraged the two-generation loan term, refuting suggestions that stretching the loans that far would be a burden to the younger family members.

“I don’t think it is a burden for the next generation because the repayment is spread over a long time,” he said, adding that the younger generation is financially strong and can even afford to buy another house.

MBSB chief executive officer Datuk Ahmad Zaini Ithman said the idea of offering longer-term housing loans was to preserve the value of assets or investments.

“Ownership in the past meant buying for investment. But now, a house is a place for the family to stay.

“I think more financial institutions should pursue this approach,” he said.