Commercial banks offer various financial housing loan products to suit first time house buyers

March 6, 2018
Kuala Lumpur, Tuesday, 6, March 2018 – With reference to the recent article in The New Straits Times titled “Relax financing requirement guidelines, urges MIEA”, The Association of Banks in Malaysia (ABM) would like to reiterate that its member banks, which comprise the commercial banks operating in Malaysia, have remained supportive towards providing housing loans to eligible house buyers including the first time house buyers and affordable segments.

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% of housing loan borrowers are first-time owners of affordable homes. This was further reinforced by housing loan approval rates of 73% in 2017.

Our 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. This is to ensure that borrowers are not overly burdened by their financial obligations.

House buyers need to be cognizant of their loan eligibility and affordability based on their current financial circumstances, and select properties based on these parameters. 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.

First time house buyers are advised to explore various housing schemes under Government’s initiative to promote home ownership such as “Skim Rumah Pertamaku” (SRP), “Skim Jaminan Kredit Perumahan” (SJKP) and 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. Useful information for house buyers in the affordable segment and data/statistics on housing loans approved is available on the Housing Watch website,

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.
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