KUALA LUMPUR, March 6 — The Association of Banks in Malaysia (ABM) today said it has remained supportive of eligible house buyers by approving housing loans, including for those buying their first home or affordable homes.
As proof of its support, the ABM cited various figures, including the housing loan approval rates of 73 per cent in 2017.
“This can be evidenced by robust overall loan approvals from the banks worth RM161 billion for house financing to more than 375,000 borrowers in 2017.
“It is clear that financing remains available for eligible borrowers as 71 per cent of housing loan borrowers are first-time owners of affordable homes,” it said in a statement.
It was responding to a news report last week by the New Straits Times, where Malaysian Institute of Estate Agents president Eric Lim was quoted urging the authorities to relax tight financing requirements that were allegedly cited by first-time homebuyers and young property buyers as hampering their securing of housing loans from banks.
Today, the ABM however said that its member banks “are in the business of lending and will continue to provide home financing to eligible borrowers while adhering to responsible financing guidelines in order to mitigate against financial risks for both the banks and the borrowers”.
It said the financing guidelines were necessary to ensure borrowers are not overly burdened by their financial obligations, also advising house buyers to select properties based on their current financial circumstances, and to be mindful of how much they could afford and be eligible to borrow.
“Key causes of loan rejections may include, but are not limited to, insufficiency of income to support the loan amount applied, high level of financial commitments in comparison with their income, adverse credit history, weak documentation or banking records and the inability to service the loan,” said the association which represents 27 commercial banks operating locally.
The ABM advised first-time house buyers to explore government-initiated schemes to promote home ownership such as Skim Rumah Pertamaku (My First Home Scheme), Skim Jaminan Kredit Perumahan (Housing Credit Guarantee Scheme) and 1Malaysia People’s Housing Programmes (PR1MA) homes.
“Our member banks have also introduced various flexible financial products under these Government initiatives which are tailored for different levels of income targeted at providing suitable and affordable housing opportunities,” it said.
“It is important for first time house buyers to discuss and work with their banks and/or financiers to seek out a loan package that best suits their needs and affordability,” it added.
The ABM said the public could contact ABMConnect at 1300-88-9980 or via eABMConnect at www.abm.org.my if they have any enquiries or complaints on housing loan matters.
It said potential affordable home buyers could find useful information on the Housing Watch website — www.housingwatch.my, which also carries statistics on housing loan approvals.
