ABM says banks remain supportive to house financing

PETALING JAYA: The Association of Banks in Malaysia (ABM) says its members, comprising 27 commercial banks, have remained supportive towards providing housing loans to eligible house buyers including the first time house buyers and affordable segments.

It was responding to recent news report on the Malaysia Institute of Estate Agent's concerns over financing requirement guidelines.

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 said in a statement today.

"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," it added.

ABM reiterated that its member banks 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," it said.

However, the association said the house buyers need to aware of their loan eligibility and affordability based on their current financial circumstances, and select properties based on these parameters.

It said key causes of loan rejections may include 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 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," it added.

The public may contact ABMConnect at 1300-88-9980 or via eABMConnect at www.abm.org.my for any enquiries or complaints related to housing loan matters.