Dot Property Malaysia

Win-win for both property developers and buyers

The Malaysian government granted property developers the right to provide loans to property buyers and it’s a win-win for both parties.

The initiative is designed to assist homebuyers who are unable to get a full loan from the bank. Sometimes homebuyers are only provided with a loan to cover 70 percent of the property costs from the bank and they may only have the other 20 percent of their own funds. Allowing property developers to loan an additional 10 percent (or whatever is needed) will increase real estate purchases.

Developers can charge individuals buying properties from them an interest rate between 12 percent (loans with collateral) and 18 percent (without collateral), according to the ministry of Urban Wellbeing, Housing and Local Government.

Property developers have to obtain a money lending license from the ministry in accordance to the Moneylenders Act 1951 in order to lend to buyers.


The initiative creates new channels for developers to gain profit and allows those to purchase a home who could not otherwise – it’s a win-win.