Total Housing Loan in Malaysia
Total housing loan in Malaysia have been increase from year to year. This is stated in the Bank Negara Malaysia (BNM) annual statistic report. Currently, there is an increase in the housing loan that have been approved by the bank from 2011 to 2012 . In order to own a house, there is a large amount of money is needed. House is a long term property and the price is high. Not every people are afforded to buy their own house if they have not completed certain requirements. Since house price is expensive, the availability of housing finance is very important.
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Nowadays, home financing has offer many kind of financial products to the homebuyers when purchasing their dream house. There are already various institutions which offer housing loans that prospective borrowers can access such as banks, state housing corporation/agencies or mortgage institutions. It has become very important that the financial institutions to determine the factors that are pertinent to the homebuyers in selecting a mortgage home loan provider as there are a rapid change and more sophisticated homebuyers on this day.
In order to establish whether the homebuyers have the potential capacity to pay for their desired home, they were asked to estimate the average purchase price, the deposit required, and the deposit that they could afford as well as any saving that could be added to the funding package. Currently, Ministry of Housing and Local Government has introduced housing loan scheme or Skim Pinjaman Perumahan (SPP) which aim to help people with the low income to buy a house. The target group for this scheme are the households with the earning between RM500. 0 to RM1200. 00 per month and are not eligible for another loan to build a house or buy a completed low-cost house. Besides that, homebuyers have to consider in many dimensions such as down payment, maturity of the contract, repayment structure, the ability to refinance, the possibility of being subject to borrowing constraints, and the evolution of economic variables such as interest rate, inflation, house appreciation rate, unemployment rate and income growth.
Mortgage loan is one of the alternatives or source of finance in home purchases and it become the popular choice where property was used as the main sources of collateral secure the loan made. Today, there are more financial alternatives offered to the public and at the same time there are more options for Malaysian bank customers to choose from. In exploring the information would help service providers to identify appropriate marketing strategies needed to attract new borrowers. This study attempts to deepen about consumer decision making when selecting a service provider and what criteria are of most importance.