PETALING JAYA: Residential loan applicants should aim for the right bank to ensure maximum chance of approval.
According to the figures from Bank Negara Malaysia, the loan approval rate this January has dropped to 38% for RM15.27bil worth of residential loan applications.
It added another RM9.42bil (62%) worth of loan applications were not approved.
Financial expert Gary Chua, founder of Smart Financing Co, said that the loan approval rate has been deteriorating for the past year, going below 50%.
He advised that house buyers should understand and prepare their applications according to the bankers’ expectations, as each have different policies in evaluating the applications.
Citing commission income as an example, he said some banks might only recognise 50% of this type of income, while others have a different yardstick.
Moreover, self-employment, debt service ratio and other factors were also evaluated differently.
As the conditions are more stringent for lower income groups, first-time homebuyers who earn below RM5,000 could apply for joint loans and target properties that are below RM300,000.
In conjunction with the StarProperty.my Awards 2016, which honoured developers that offer sustainable and quality housing properties, StarProperty.my organised a special showcase at the concourse of The Curve shopping mall from Thursday till today from 10am to 10pm.
Visitors flocked to the event to check out the distinctive projects by the winners, which included Mah Sing Group Bhd, Eco World Development Group Bhd, Sime Darby Property Bhd, UEM Sunrise Bhd, Sunway Bhd, Paramount Property, Titijaya Land Bhd, Thriven Global Bhd and LBS Bina Group Bhd.
The Family-Friendly Award winners are IJM Land Berhad for Bandar Rimbayu (Excellence) and IOI Properties Group Berhad for 16 Sierra (Honours).
The Starter Home Award winners are S P Setia for Seri Baiduri Apartment in Setia Alam (Excellence) and SkyWorld Development Sdn Bhd for SkyAwani Residence (Honours).
For more information, visit http://fair.starproperty.my.