The Association of Banks in Malaysia (ABM) is fully supportive of the Government’s various initiatives to assist households from low and middle-income groups to purchase their own homes. It is not true that there are tougher credit checks on potential buyers.
Chuah Mei Lin, Executive Director of ABM said, “Our member banks which have focus in the retail sector have been participating in Government’s schemes such as “PR1MA” and “Skim Rumah Pertamaku”. Member banks are continually reviewing their strategies and engaging with the authorities to boost home ownership in the country while reining in household debt.”
The rejection rate for housing loans have been on a declining trend from 25% in 2012 to 18% in 2014 reflecting borrowers and lenders adjusting better to the affordability assessments.
“The business of commercial banks is in the main lending or extending credit while adhering to their respective risk appetites and/or the guidelines set by the regulators. Consumers who are eligible will continue to be able to obtain financing. What is important is for all consumers to recognize the need to make sound decisions of their own affordability appropriate to their financial circumstances,” added Chuah.
Furthermore, ABM’s member banks do offer various housing loan packages to suit the needs of the consumers. Consumers are thus encouraged to shop around to find a financing package which best suits their needs.
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 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. Commercial banks are committed to playing their role in this process and will continue to provide loans to eligible applicants.
Members of the public who wish to know more about applying for housing loans can contact 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