BANKS should consider altering their financial models to become “more progressive” in order to cater to the financing needs of home buyers, said Lim Guan Eng.

Financial institutions should not only look at ways to help potential home buyers secure financing, but also assist those who face problems servicing their loans, the finance minister said.

“Perhaps they could look at changing the financing model to something more progressive,” he said during his keynote address at the launch of the National Property Information Centre’s 2018 Malaysia property market report.

“For example, maybe banks could lower the principal payment so that the borrower could pay more in the later years instead of now.”

Lim said on Friday house buyers denied loans from local banks can lodge complaints with his ministry for assistance. 

The ministry will refer the complaints to Bank Negara and the bank involved will need to provide explanation over the rejection of loan applications.

“If you have difficulties getting loans, refer to the Finance Ministry. We will then check with Bank Negara and the banks. 

“We want banks to encourage lending.

“If the application rejections are not justified, not only will we ask the bank to approve the loans, we may consider actions against them.” – April 30, 2019.