KUALA LUMPUR: The reduced Overnight Policy Rate supports home ownership affordability through lower debt servicing costs according to the Ministry of Finance.
Existing homeowners with floating-rate loans will generally enjoy reduced monthly instalment payments following the rate adjustment.
This reduction provides additional financial space for homeowners to support other essential expenses alongside their mortgage commitments.
New homebuyers will also benefit from lower loan rates that align with the OPR reduction implemented by Bank Negara Malaysia.
The Ministry emphasised that borrower risk profiles and other factors still determine the overall cost of each individual loan.
Housing affordability remains influenced by property prices and the availability of affordable housing options across different regions.
Household repayment capacity continues to play a crucial role in determining successful home ownership outcomes nationwide.
Market data reveals that only 31.6% of new homes launched in 2024 were priced below the RM300,000 affordable housing threshold.
The majority of newly launched properties exceed maximum affordable price ranges, creating significant market imbalances.
Excessively high house prices frequently surpass household income capabilities, reflecting ongoing demand-supply mismatches.
Limited household income and insufficient savings represent major barriers preventing many Malaysians from achieving home ownership.
The government collaborates with Bank Negara Malaysia and financial institutions on various home ownership initiatives.
These efforts include the Housing Credit Guarantee Scheme, which provides financing facilities for first-time home buyers. – Bernama
