KINIBIZ Controversial property financing scheme DIBS, also known as the developer interest-bearing scheme, was banned last year after four years of consideration by Bank Negara Malaysia.

 

But some birds in the jungle are chirping for its return, which Tiger is roaring against. Here’s why.

 

So Penang chief minister and Democratic Action Party (DAP) secretary-general Lim Guan Eng has again urged Bank Negara Malaysia to reinstate the controversial developer interest-bearing scheme (DIBS). Tiger thinks that is a bad, bad idea.

 

Lim’s call was made following the upward revision of the central bank’s overnight policy rate by 25 basis points, the first in three years.

 

“DAP opposes any hike in interest rate that would burden borrowers without any compensating measure to help them to repay or service their loans,” said Lim in a statement last Friday.

 

“Reinstating the DIBS for houses below RM400,000 would benefit first-time buyers and promote housing democracy.”

 

For the uninitiated, the scheme essentially exempts home buyers from paying interest on their mortgage while their purchased home is under construction as the interest costs - claimed to be borne by the developer - had actually been priced into the home sale price.

 

For the complete story go to KiniBiz .

 

This story was written by Khairie Hisyam.