BNM: No tightening of policy for first-time buyers

KUALA LUMPUR: Bank Negara Malaysia (BNM) has reiterated that there has been no tightening of policy for first-time home buyers.
However, its governor Tan Sri Dr Zeti Akhtar Aziz said all borrowers need to be credit-worthy and therefore, there is an affordability test.
"If a borrower can demonstrate that they have income stream that can service their borrowing, then they will be entitled and eligible to borrow," she told reporters yesterday.
She noted that there's only been a tightening on borrowing for third-time borrowers ..."that means if you are borrowing for your third property, and there's been a tightening if you are purchasing multiple properties. Our policy is not to allow our country to become over leveraged, over indebted because it has very severe consequences as we have seen what happens in other countries," she added.
She was commenting on Johor state government's calls for BNM to relax its regulations on banks in approving loans for eligible house buyers, especially first-time home buyers.