AS suggestions for Funds 2022, I counsel that monetary establishments give full loans (100% end-financing) to purchasers of property priced under RM1mil.
This might assist to stimulate the sluggish property market as a result of extended motion management order because the outbreak of Covid-19 and likewise fight the observe of marking up the property’s transaction worth.
In typical observe, the “90% mortgage margin from market worth for first and second housing mortgage, 70% for third mortgage…” is now not related, as it could possibly simply be circumvented by marking up the promoting worth of the property.
Marking up is finished when the sale and buy (S&P) settlement worth is purposely adjusted to a worth that’s greater than the precise worth to assist the customer safe a property with out utilizing their very own cash.
Marking up has grow to be a typical observe amongst mortgage consultants, bankers and solicitors as a way to keep aggressive.
They might “store” for an adjusted and pretend market worth to fulfil their shopper’s wants.
With new valuation corporations being arrange yearly, marking up the market worth will be executed simply so long as a request is made.
The identical factor occurs in mission gross sales the place the market worth of the property can simply be manipulated by builders.
The promoting worth can be marked up and the property purchaser would then be given a full mortgage, engaging rebate, free authorized payment, stamp responsibility and so forth, or so it appears.
Permitting a 100% mortgage to the market worth of a property will fight the observe of marking up and in the end restore the delight and professionalism of actual property valuation.
CHEAH POH OO