Home Buyers Demand Rigorous Standards for Credit Guarantee Scheme
By Loshinniy Nair S. Baskaran
20th October: Home buyers in Malaysia are urging the government to establish stricter criteria for the Credit Guarantee Scheme (CGS) to enhance its effectiveness. This initiative, aimed at assisting first-time buyers in securing loans, has faced criticism for its lenient standards, which some believe could lead to financial instability.
The CGS was introduced to help those struggling to obtain financing due to high property prices and stringent lending practices. However, stakeholders argue that the current guidelines allow too many applicants who may not be financially prepared for homeownership. They emphasize that a more rigorous assessment process is essential to ensure that only qualified individuals benefit from the scheme.
Advocates for reform suggest implementing comprehensive credit evaluations and requiring proof of stable income and employment history. They believe these measures would not only protect buyers but also safeguard the overall housing market from potential risks associated with defaults.
Furthermore, the call for stricter criteria aligns with broader concerns about housing affordability and economic sustainability. By refining the CGS, stakeholders hope to create a more resilient framework that supports genuine home buyers while minimizing the chances of financial distress.
In conclusion, home buyers are pressing for enhanced regulations on the Credit Guarantee Scheme to promote responsible lending and ensure that the program effectively aids those truly ready for homeownership, as stated in Free Malaysia Today.