Malaysia’s leading developer, S P Setia Bhd, has launched a new home loan package with four local banks, committing to provide financing facilities worth more than RM1 billion to the developer.

The new scheme, known as the ‘5/95 Home Loan Package’, allows buyers to make a down payment of five per cent while the balance is payable upon completion of the property. Buyers usually have to make a down payment of 10 per cent of the property cost under the 10:90 variant of the build-then-sell system.

“We want to reassure buyers that bankers are not shying away from lending,” said Tan Sri Liew Kee Sin, group managing director and chief executive officer of S P Setia.

The four banks supporting the scheme are Malayan Banking Bhd, Public Bank Bhd, CIMB Bank Bhd and EON Bank Bhd. In addition to the support from these banks, the group also has RM600 million in cash to fund the campaign.

Under the three-month campaign, which will end on April 19, the group would also bear other entry costs such as legal fees, stamp duty on the sale and purchase agreement and loan agreement, as well as memorandum of transfer for purchases under the campaign. The home loan package is applicable to all S P Setia’s residential properties in the Klang Valley, Johor and Penang.

Liew believes that Malaysians are still looking to purchase properties and have the purchasing power to do so, but the current market may have shaken them. He said that the company had received very encouraging response from buyers to the promotion.