This interests amount will be larger of course if you got a lousier interest rate (e.g. BLR - 2%) or if you are old and only qualify for less than 30 years term. So, 5% is really nothing. You should demand for at least 8% rebate.
Why rebate and not a discount off the SPA price?
Developers (and investors) seem to think that a lower SPA price will suppress the resale value of the property. But I don't think this is the full picture. As far as I am concerned, I refuse to buy properties that are over-valued. So, no matter what was the original SPA price, if the value isn't there (i.e. in terms of rental yield), the resale price will still be suppressed.
Having a higher SPA price simply means the loan amount is higher and subsequently, the buyers need to serve higher interests. This is definitely not in the buyers' interests.
So, now that DIBs have been taken away and we now see developers offering cash in lieu of it simply goes to show that property prices have been inflated in the 1st place. And the fact is, banks have been in collaboration with developers to over-value the properties. As we know, the government's objective with all these measures is to control the rise of property prices, we should not be surprised if some properties bought earlier under DIBs may "re-adjust" in value downwards - something that rarely happens in Malaysia.