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OPR Cut Will Ease Property Buyers' Burden Of Servicing Home Loans -- SP Setia CEO

Last update: 13/07/2016

KUALA LUMPUR, July 13 (Bernama) -- Bank Negara Malaysia (BNM)'s decision to cut the overnight policy rate (OPR) will ease the burden of property purchasers servicing their home loans.



In a statement today, SP Setia Bhd Chief Executive Officer (CEO)/President, Datuk Khor Chap Jen, said the purchasers' monthly repayments for their their loans will be lower and they will have extra money on hand to spend.



"The cut will also mean more potential property purchasers will qualify for home loans and this will especially benefit first-home buyers," he said.



Khor said the reduction will also benefit property developers who had high gearings, or planned to borrow future funding from the banks as it will reduce the costs of borrowing.



However, Khor said, the purchasers will still face tight lending rules despite enjoying the lower OPR.



"We hope the authorities will consider easing (the lending regulations) in order to boost the current soft property market," he said.



BNM decided to cut the OPR by 25 basis points to three per cent at its Monetary Policy Committee meeting today, the first reduction since 2009 to ensure the economy remained on a steady growth path.



-- BERNAMA