Bank Negara introduces standardised housing loan, home financing agreement for retail customers

KUALA LUMPUR: Bank Negara has introduced a standardised housing loan and home financing agreement for retail borrowers/customers.

In a statement, the Association of Islamic Banking and Financial Institutions Malaysia (Aibim) said the initiative seeks to enhance the quality-of-service delivery, promote consumer understanding and comparability of key terms and conditions, and simplify language in such agreements, including borrowers'/customers’ and financiers' responsibilities and obligations.

It added that the move reinforces its commitment to promoting fair consumer outcomes in the financial industry in accordance with the Policy Document of Fair Treatment of Financial Consumers, as well as other relevant policy documents, guidelines and circulars issued by the central bank.

As part of the implementation of the standardisation, financial institutions are required to cease imposing any fee, whether directly or indirectly, on housing loan and home financing documents to lawyers, with effect from Feb 1, 2023.

"Standardising the housing loan and home financing agreement is a significant step forward in enhancing customer protection in the financial industry, and AIBIM members fully supported this initiative," said Aibim president Mohd Muazzam Mohamed.

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Bank Negara , housing , loan , Aibim , mortgage , financing


Next In Business News

IOI Corp expects operating environment to remain challenging
Press Metal reports RM282mil net profit in 1Q
FBM KLCI tumbles 8.02 points to below 1,400-level
Singapore home prices surpass Hong Kong as APAC's most expensive - survey
Gold slips to lowest in more than 2 months as dollar gains
Weak China data outlook, US debt deal weigh on Asian FX
Asian stocks dip as investors question consequences of US debt deal
DC Healthcare inks underwriting agreement with M&A Securities
GDEX's new auto hub to triple daily sorting capacity to 350,000 shipments
FGV to push through 2023 on 1Q momentum

Others Also Read