KUCHING, March 30: The standardisation of housing loans and home financing agreements will allow retail borrowers to understand and compare the terms and conditions in these documents when taking out a loan.
Sarawak Housing and Real Estate Developers’ Association (SHEDA) Kuching branch chairman Dato Sim Kiang Chiok said the standardised document will be the benchmark for the term and conditions of the housing loan which all the banks cannot ‘deviate’.
“This will create a level playing field for all the lenders and customers. With the standardised term and condition, if there are any disputes, it would be easier to resolve,” he said in a statement today.
He also mentioned that the sales and purchase agreement for residential houses is also standardised under the various regions in their respective Housing Development Act or Ordinance, which help prevent any unfair conditions between the developer and purchaser.
He further welcomed the move that will require banks to abolish the loan documentation fee (on housing loan and home financing documents) on lawyers effective Feb 1, 2023.
“Any saving is good in reducing cost of living or doing business,” he added.
Recently, the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) in a statement, has revealed that Bank Negara Malaysia (BNM) has introduced the standardisation initiative to improve the quality-of-service delivery in the long run. — DayakDaily
