By Shikin Louis
KUCHING, May 14: Tupong assemblyman Datuk Fazzrudin Abdul Rahman has proposed a State-backed housing “gap financing” scheme, including options for 1 per cent interest or interest-free loans, to help M40 families bridge the affordability gap in urban home ownership.
He said the mechanism is aimed at households who fall into the “missing middle” — earning too much to qualify for B40 housing schemes but unable to afford open-market homes often priced above RM500,000.
“Many can only obtain loans of RM250,000 to RM400,000, while suitable family homes in urban areas are often above RM500,000,” he told the Sarawak Legislative Assembly (DUS) when debating in support of the Sarawak Governor’s Address today.
Under his proposal, the State would provide a supplementary loan of about RM50,000 to RM75,000 on top of bank financing and buyer deposits to close the shortfall between loan eligibility and property prices.
He said for a typical RM500,000 home, buyers may secure a bank loan of around RM400,000, with the remaining gap covered through the State-supported facility.
“The State loan can be interest-free, or at 1 per cent interest, similar to existing assisted financing models, or deferred for the first five years.
“This helps buyers cross the affordability gap without forcing the government to fully subsidise the house,” he added.
He also said the initiative could be tested through a pilot project involving about 1,000 eligible buyers before wider rollout, allowing the mechanism to be refined. — DayakDaily
