Kuala Lumpur, Monday, 9 October 2017 – This is with reference to the article published in the EdgeProp titled “More developers helping homebuyers with their downpayment” dated 20 September 2017 where it was alleged that house buyers are finding it harder to obtain a housing loan and that loan approval time is increasing. The Association of Banks in Malaysia (ABM) strongly refutes the allegations made.
Banks have always been supportive in providing home loans to all eligible borrowers. The overall housing loan approval rates remains high at 73% of the applications in the second quarter of 2017. Further, 72% of the housing loan borrowers are first-time house owners under the affordable home category. For the first 8 months of 2017, commercial banks approved over RM42.2 billion and disbursed approximately RM39.5 billion in loans for the purchase of residential properties. Financing therefore remains available for eligible borrowers.
Our member banks, take an average of 2 to 9 working days to process a housing loan application with complete documentation submitted by the applicant. The same turnaround time also applies to appeal cases. An applicant who does not submit complete documentation will cause a delay in the approval process. For unsuccessful applicants, they are generally informed of the status of their application within 1 to 2 working days. Therefore, the 60 to 90 days taken for loans approval as stated by REHDA is not reflective of the speedy approval process of housing loans by banks.
Our member banks have been and will continue to remain prudent and responsible in providing housing loans to eligible house buyers. Over the last 18 months, ABM has issued 8 press releases and 7 responses to the media queries in relation to this matter. Please refer to ABM’s website www.abm.org.my
for the press releases.
We wish to state that inaccurate statements can cause confusion amongst the public and create a biased perception on issues pertaining to housing loans in general.
Extensive information including statistical data on housing loans can be obtained from the Housing Watch website at www.housingwatch.my
Members of the public may contact ABMConnect at 1300-88-9980 or via eABMConnect at www.abm.org.my
for any enquiries or complaints related to housing loans matters.