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First time home-owners continue to have access to financing

Ref No : 07/16/04 21 Jul 2016 Embargo : For immediate release    

In response to recent media queries on requests to review Bank Negara Malaysia’s (the Bank) lending guidelines, the Bank wishes to inform that first time home-owners continue to have access to financing. Outstanding housing loans continue to expand at double digit levels, recording a growth of 10.6% as at end May 2016. About 75% of borrowers (approximately 1.5 million borrowers) with housing loans are first time house buyers.

We wish to state that access to credit is not the problem confronting potential buyers in owning affordable houses. There are more fundamental issues that require resolution such as affordability and shortage of supply of reasonably priced houses.

The responsible financing guidelines by the Bank serve to ensure that individuals borrow within their capacity to repay the borrowings. It places a responsibility on banks to establish a borrower’s income that will be available to meet debt repayments, after allowing for expenditures and contingencies.  This is to protect and prevent individuals from falling into financial hardship due to over borrowing, which ultimately undermines home ownership as a result of foreclosures. 

Bank Negara Malaysia does not prescribe any lending limits. Lending decisions continue to be determined by a bank’s business decision, reflecting its risk appetite and strategies. As a general rule, all applicants who fulfil the credit criteria and can afford to repay the debt will have access to credit.

The Bank, Agensi Kaunseling dan Pengurusan Kredit and Association of Banks in Malaysia continue to engage with state authorities to improve the process for approving applicants for affordable homes to ensure that they will also be eligible for bank financing. This includes helping individuals identify the steps that they can take to improve their eligibility for financing.

For further inquiries on access to financing, financial consumers can contact:

Laman Informasi Nasihat dan Khidmat (BNMLINK)
(Walk-in Customer Service Centre)
Ground Floor, D Block
Jalan Dato' Onn
50480 Kuala Lumpur
Operating Hours: 9.00 a.m. - 5.00 p.m. (Monday - Friday)

Contact centre (BNMTELELINK)
Tel: 1-300-88-5465 (1-300-88-LINK)
(Overseas: 603-2174-1717)
Fax: 603-2174-1515
E-mail: bnmtelelink@bnm.gov.my
SMS: 15888
Operating Hours: 9.00 a.m. - 5.00 p.m. (Monday - Friday)

Bank Negara Malaysia
21 Jul 2016

© Bank Negara Malaysia, 2016. All rights reserved.