Kuala Lumpur, Wednesday, 29 March 2023 – The Association of Banks in Malaysia (ABM) first introduced the standardised template for description of key terms and conditions in respect of housing loan or home financing agreements for individuals involving a principal sum of RM500,000 and below in 2013. This template has since been used by ABM member banks as part of the housing loan agreements for stipulated residential property loans to individuals.
Over the years, this template has been revised to reflect various changes in regulations, with the most recent changes made in 2021 to simplify the language used in the said document. In the next phase of this initiative, ABM member banks will expand the usage of the said template to stipulated residential housing loans to individuals regardless of the loan amount by 1 April 2023.
The main objectives of this initiative are to enhance the quality of service delivery, as well as to facilitate borrowers’ understanding and comparability of the key terms and conditions of the housing loan agreements through the use of simplified language, including the responsibilities and obligations of borrowers and the banks under such agreements.
ABM member banks are committed to uphold fair consumer outcomes in line with the requirements outlined in the Policy Document on Fair Treatment of Financial Consumers and other relevant policies issued by the regulator.