Banks: Eligible first time home buyers will get financing

Association of Banks in Malaysia says first time home buyers must recognise the need to make sound decisions of their own affordability based on their financial circumstances.

KUALA LUMPUR: The Association of Banks in Malaysia (ABM) says first time home buyers who are eligible will continue to be able to obtain financing. 

It explained that it was crucial for these buyers to also recognise the need to make sound decisions of their own affordability based on their financial circumstances.

“The business of our member banks is in the main lending or extending credit. There is no intention whatsoever to make lending more difficult, particularly for first time home buyers,” ABM said in a statement on Monday.

ABM had issued the statement to clarify a recent report on banks being “overly cautious” on mortgage loans for first-time home buyers. 

The association also pointed out that for first time home buyers, the bank would usually finance up to 90% of the price of the property. 

“They may also want to consider applying for government schemes such as ‘Skim Rumah Pertamaku’ for assistance in their property purchase,” it said. 

ABM added commercial banks had offered special housing loan packages to suit the needs of first time home buyers. 

It encouraged them to shop around to find a suitable financing package. 

“Additionally, applications for such mortgage loans are decided on a case to case basis and there is no blanket approval system,” it said.

ABM also encouraged consumers to fully and accurately disclose all material information with regard to their financial position when applying for a home loan. 

“In conducting affordability assessments, commercial banks take into account the applicant’s income after statutory deductions, expenditure on necessities and all existing debt obligations from banks and non-bank lenders.  

“For self-employed applicants, banks will also take into account their proof of savings and regular income sources. 

“First time home buyers 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 the buyers.  Commercial banks are committed to playing their role in this process,” it said.

ABM said the association and its council banks would be pleased to engage with all State Governments with regard to matters related to home ownership in the state.  

It added members of the public with enquiries or complaints related to housing loan matters could  contact the ABMConnect hotline by dialing 1-300-88-9980, or e-mail to eABMConnect by logging on to its website,

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Impiana Hotels secures 5-year contract to manage Petronas leadership centre
Serba Dinamik appoints Nexia as new external auditors
F&N posts higher sales in Q3, but rising costs dent earnings
Political turmoil weighs on Bursa
As China's recovery wobbles, economists expect more policy easing
Thai holds key rate at record low amid COVID-19 surge
Sony posts Q1 profit jump on pandemic demand for devices and content
LBS Bina records property sales of RM684m as at end-July
Airline industry statistics confirm 2020 as worst year on record
Merchantrade Asia, NPCI offer real-time remittances to India

Stories You'll Enjoy