Banks not making lending more difficult for homebuyers

By BERNAMA

The Association of Banks in Malaysia (ABM) has clarified that its members have no intention whatsoever to make lending more difficult, particularly for first-time homebuyers.

It said this in response to recent reports of banks being “overly cautious” on mortgage loans for such customers.

“The business of our member banks is in the main lending or extending credit. First-time homebuyers who are eligible will continue to be able to obtain financing.

“What is important is for such buyers to recognise the need to make sound decisions of their own affordability appropriate to their financial circumstances,” it added.

For first-time homebuyers, banks usually finance up to 90% of the price of the property.

“They may also want to consider applying for government schemes such as My First Home Scheme for assistance in their property purchase,” the association said.

It also said special housing loan packages are being offered by commercial banks to suit the needs of first-time homebuyers and thus, they are encouraged to shop around to find a financing package which best suits their needs.

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

Consumers are also encouraged to fully and accurately disclose all material information with regards 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, it said.

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

First-time homebuyers 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.

Members of the public who may have enquiries or complaints related to housing loan matters are welcomed to contact ABM at its ABMConnect hotline by dialing 1-300-88-9980 or email to eABMConnect by logging on to www.abm.org.my.

ABM has 27 members comprising commercial banks that currently operate in Malaysia.