The Association of Banks in Malaysia (ABM) wishes to clarify a recent report on the call for banks to be more flexible in providing loans to first time house buyers.

Certain commercial banks are offering special housing loan packages to suit the needs of first time home buyers. First time home buyers are thus encouraged to shop around to find a financing package which best suits their needs. They should work with their financiers when making the suitability and affordability assessments for any facility applied for to pave the way for more robust financial management on the part of the buyers. Commercial banks are committed to playing their role in this process.

Eligible first time home buyers will continue to be able to obtain financing. What is important is for such buyers to recognize the need to make sound decisions of their own affordability appropriate to their financial circumstances. Some of the factors which they would need to consider for the purchase of their first home are to have adequate down payment, good credit record and to have the financial capability to make monthly payments.

Consumers are also encouraged to fully and accurately disclose all material information with regard to their financial position when applying for a home loan. In conducting affordability assessments, commercial banks take into account the applicant’s income after statutory deductions, expenditure on necessities and all existing debt obligations from banks and non-bank lenders. For self-employed applicants, banks will also take into account their proof of savings and regular income sources.

First time house buyers may also want to consider applying for Government schemes such as “Skim Rumah Pertamaku” for assistance in their property purchase.

Members of the public who may have enquiries or complaints related to housing loan matters are welcomed to contact us at our ABMConnect hotline by dialing 1-300-88-9980, or emailing us at eABMConnect by logging on to our website, www.abm.org.my.