New Straits Times , Photo Credit to New Straits Times
clock 17-11-2017
hit 778

Home Financing: Approval Rate Improving?

ARE housing loan approval rates slowly increasing?


There are various accounts on this with property developers saying that a big number of housing loan applications by potential buyers, especially first timers, have been rejected by lenders.

The Real Estate and Housing Developers' Association (Rehda) has previously stated that the rejection rate for housing loans was high, at 60 per cent.

According to Rehda patron and past-president Datuk Ng Seing Liong it was because banks were filtering housing loan seekers before even receiving their applications.

He said the standard was so high it was difficult for potential home buyers to get financing.

Lenders, on the other hand, are saying that the situation is improving but have blamed the lifestyle of home buyers if their loans have been rejected.

There was also concerns over their Central Credit Reference Information System (CCRISS) record, including issues of National Higher Education Fund Corp (PPTN) loans.

According to the Association of Banks in Malaysia, for the first eight months of the year, commercial banks approved more than RM42.2 billion and disbursed about RM39.5 billion loans for the purchase of residential properties.

Meanwhile, a study by PropertyGuru.com revealed that inability to obtain a housing loan remains the biggest hurdle faced by most home buyers.

"Official numbers and statements stating the high rejection rates have been alarming and have been attributed both to the ignorance and inability of buyers to meet financing institution criteria" it said.




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