KOTA KINABALU: Seven out of 10 housing loan applications were approved in Malaysia in the second quarter of this year, debunking the perception that housing loans were difficult to obtain.
The Association of Banks in Malaysia (ABM) said in a statement issued in Kuala Lumpur on Monday, 9 October, responding to a report in the EdgeProp titled "More developers helping homebuyers with their down paymentâ€ on Sept 20.
The report alleged that house buyers were finding it harder to obtain a housing loan and that loan approval took longer.
In Sabah, the Sabah Housing and Real Estate Developers Association (SHAREDA) had also on numerous occasions blamed stringent lending conditions for what it alleged a high percentage of loan rejection.
ABM refuted the allegations.
"Banks have always been supportive in providing home loans to all eligible borrowers. The overall housing loan approval rates remain high at 73% of the applications in the second quarter of 2017.
"Further, 72% of the housing loan borrowers were first-time house owners under the affordable home category.
"For the first 8 months of 2017, commercial banks approved over RM42.2 billion and disbursed approximately RM39.5 billion in loans for the purchase of residential properties. Financing, therefore, remains available for eligible Borrowers.
"Our member banks took an average of two to nine working days to process housing loan applications with complete documentation submitted by the applicant.â€
An applicant who does not submit complete documentation will cause a delay in the approval process. Unsuccessful applicants were generally informed of the status of their application within one or two working days.
"Therefore, the 60 to 90 days taken for loans approval as stated by REHDA (Real Estate and Housing Developers Association) is not reflective of the speedy approval process of housing loans by banks.
Our member banks have been and will continue to remain prudent and responsible in providing housing loans to eligible house buyers.
Over the last 18 months, ABM has issued 8 press releases and 7 responses to the media queries in relation to this matter. Please refer to ABM's website www.abm.org.my for the press releases.