Banks allay fears of first-time home buyers over financing

Banks allay fears of first-time home buyers over financing

PETALING JAYA, Nov 17: Eligible first-time home buyers will continue to be able to obtain financing, said the Association of Banks in Malaysia (ABM).

“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,” it said in a statement yesterday clarifying a recent report on banks being “overly cautious” on mortgage loans for first-time home buyers.

“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.

According to ABM, the bank usually finances up to 90% of the property price for first-time home buyers. It also urged first-time buyers to consider applying for government schemes such as “Skim Rumah Pertamaku” for assistance in their property purchase.

Special housing loan packages are being offered by commercial banks to suit the needs of first-time home buyers who are encouraged to shop around to find a financing package that best suits their needs.

In addition, ABM said applications for such mortgage loans are decided on a case to case basis and there is no blanket approval system.

“Consumers are also encouraged 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,” said ABM.

The association and its council banks said they are open to engagements with all state governments on matters related to home ownership in the state.

Members of the public who have enquiries or complaints related to housing loan matters may contact ABM at its ABMConnect hotline 1-300-88-9980, or email them at eABMConnect by logging on to its website