{"id":5237,"date":"2013-05-16T11:54:17","date_gmt":"2013-05-16T03:54:17","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=5237"},"modified":"2014-07-10T14:48:18","modified_gmt":"2014-07-10T06:48:18","slug":"dibs","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/dibs","title":{"rendered":"The Basics Of Developer Interest Bearing Scheme (DIBS)"},"content":{"rendered":"

\"home<\/p>\n

Update<\/span><\/strong><\/p>\n

In the recently announced Budget 2014, it is stated that developers are no longer allowed to roll out property projects with features of DIBS, while financial institutions are also prohibited from providing final funding for projects involved in the scheme. Home buyers are advised to take note of this new stance by the Malaysian government.<\/span><\/p>\n

 <\/p>\n

In recent years, more and more property developers in Malaysia are offering Developer Interest Bearing Scheme (DIBS) for newly-launched property projects as a means to entice home buyers and investors. In this article, we\u2019ll tell you what it is, how it works, and some of the things you need to take note of when purchasing a property which comes with it.<\/p>\n

<\/span>What is DIBS?<\/strong><\/span><\/h2>\n

To put it in the simplest term, it is a scheme where a property developer absorbs the home loan interest of the home buyers during the construction period of a property.<\/p>\n

If you buy a house that comes with the scheme, the developer will pay any home loan interest that is borne by you during construction (which is usually 36 months starting from project launch). Thereafter, you will service the loan interest as you would a normal home loan.<\/p>\n

<\/span>How does it benefit home buyers?<\/strong><\/span><\/h2>\n

It takes away the need to service home loan interest during a property\u2019s construction period, which frees up excess money (which would otherwise be used to service the interest) that can be utilised in many ways.\u00a0These include:<\/p>\n