Developer Interest Bearing Scheme (DIBS)

Posted on: 2014-03-06

What is DIBS?
DIBS stands for Developer Interest Bearing Scheme, DIBS is a scheme where a property developer absorbs the home loan interest of the home buyers during the construction period of a property.

If you buy a house that comes with a DIBS, 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.

How does DIBS benefit home buyers?
DIBS takes away the need to service home loan interest during a property's construction period, which frees out excess money (which would otherwise be used to service the interest) that can be utilized in many ways. 

These include:-
* Using the money to invest in assets with the potential to grow more wealth during the construction period.
* Putting the money in a fixed deposit account to generate interest which could be used to pay off the home loan faster or renovate the home upon completion.

Where to find properties with DIBS?
More and more new property projects now come with DIBS. To find one, simply look for brochures or advertisements stating ''Developers Interest Bearing Scheme'' or ''DIBS'' In Malaysia, these are especially common in developed urban areas such as Kuala Lumpur, the Klang Valley and Penang.


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