DEPARTMENT OF ESTATE MANAGEMENT FACULTY OF THE BUILT ENVIRONMENT UNIVERSITY OF MALAYA PROPERTY FINANCE
(BVEV3120) COURSEWORK SESSION 2012/2013 TITLE: HOUSING MORTGAGE IN MALAYSIA; ISLAMIC OR CONVENTIONAL FINANCING/LOAN AS A PROSPECTIVE HOUSE BUYER NAME: AUGUSTINE OBUM ONYEBUCHI MATRIC NUMBER BEE100709 LECTURER: Dr. SR ROSLI SAID NOVEMBER 2012
Table of Content Page cover Table of content 1.0 Introduction 1.1 Scope of Study 1.2 Islamic Finance 1.3 Conventional Finance 2.0 consideration 2.1Property Market 2.2 Warranty 2.3 Cost 2.4 Financing 3.0 Mortgage Product in the Market 3.1 Common Characteristics of Housing loan products 3.2 Margin of Financing 3.3 Loan Tenure 3.4 Features 3.6 Early Termination Penalty 3.7 Partial Payment 3.8
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The need and demand for housing is reflected also by the population increase. Secondly, the urban people have shelter to stay because the system has catered for their need. The standards of housing we want are a different matter. But our housing standards are higher compared with other countries. Even squatter house standards are very high, equivalent to medium costs in other countries. In housing production, Malaysia has achieved the numbers, but not in terms of the absolute target of 70% by the private sector and 30% by the public sector. In term of wealth in relation to housing, the distribution has been effective. But providing housing through subsidy is not the answer. It has a minor effect. The economy cannot go on subsidising, because it will drain the resources dry. The better approach is to provide employment and to increase the peoples' incomes. We have achieved this- full employment. In this paper, a critical look at the two mortgage system that exists in the country will be discussed. The issue of affordable home is imperative but unfortunate the affordability of the home is somewhat vague in terms of definition going by the article of Dr Sr Rosli Said, a senior lecturer at the Department of Estate Management, Faculty of Built Environment, University of Malaya published on 7th of September 2012 by New StraitsTimes.
In other to resolve the issue of housing cost in Malaysia Dr Sr Rosli Sr suggest