KUCHING: A standardised housing loan and home financing agreement for retail customers will effectively resolve disputes.
Sarawak Housing and Real Estate Developers’ Association (SHEDA) Kuching chairman Datuk Sim Kiang Chiok said the standardised document will serve as the benchmark for the terms and conditions of the housing loan, which all banks must adhere to without deviation or variation.
This will create a level playing field for both lenders and customers.
“With standardised terms and conditions, any disputes that may arise would be easier to resolve,” he said.
In addition, Sim noted that the sales and purchase agreement for residential houses is also standardised under the various regions in their respective Housing Development Act or ordinance to prevent any unfair terms between developers and purchasers.
Bank Negara has recently announced the introduction of a standardised housing loan and home financing agreement for retail customers. The initiative aims to improve the quality of service delivery, facilitate consumer understanding and comparability of key terms and conditions, and simplify the language used in such agreements, including the responsibilities and obligations of both customers and lenders.
This move reinforces the commitment to promoting fair consumer outcomes in the financial industry, in line with the Policy Document of Fair Treatment of Financial Consumers, as well as other relevant policy documents, guidelines, and circulars issued by the central bank.
As part of the implementation, financial institutions are now required to cease imposing any fee, whether directly or indirectly, on housing loan and home financing documents to lawyers, effective Feb 1, 2023.
The new policy is expected to bring greater transparency and consistency to the housing loan and home financing industry, benefiting both consumers and financial institutions alike.
