Kuala Lumpur, Friday, 3 March 2017:- Commercial banks in Malaysia have been supportive in providing home loans to buyers across all segments of society. For genuine home buyers especially in the case of owner occupied mortgage applicants, banks typically have products to offer which match the buyer’s affordability and income level. The business of commercial banks is in the main lending and they will continue to provide home financing to those who are eligible. Banks will continue to conduct suitability and affordability assessments. It is therefore crucial for all consumers to recognize the need to make sound decisions based on their own affordability appropriate to their financial circumstances.

Commercial banks with focus on the retail sector have been continually reviewing their strategies and engaging with the relevant authorities to boost home ownership in the country. Banks have taken concrete steps to collaborate with Bank Negara Malaysia and Agensi Kaunseling dan Pengurusan Kredit (AKPK) to improve the affordability for first time home owners. Agencies such as AKPK also provide advice to prepare potential home buyers for the near future.

Consumers are strongly encouraged to fully and accurately disclose all material information with regard to their financial position when applying for a home loan. In addition, 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 consumers. For this purpose, commercial banks may also accept alternative proof of income such as ledgers, bank accounts statements, and cash receipts as part of their evaluation process.

With the various home financing packages available in the market, consumers are advised to shop around to find one which best suits their needs. Members of the public who wish to know more about applying for home loans can contact The Association of Banks in Malaysia (ABM) 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.