Financing Performance
  • Outstanding housing loans by the banking system expanded by 8.8% as at end-September 2017 to RM507.8 billion.
  • Financing remains available for eligible borrowers, with 71% of housing loan borrowers being first-time owners of affordable homes.
  • The overall housing loan approval rate remains high at 73% in 3Q 2017. Reflecting diverse economic, geographical and demographic differences across states, the housing loan approval rates range from 67% to 85%.
  • During the first nine months, banks approved RM121.6 billion of house financing to about 300,000 borrowers.

Common reasons for rejection:
  • Borrowers have very little residual income after taking into account monthly living expenditures and existing financial obligations;
  • Borrowers have poor past track record or financial indiscipline; and
  • Insufficient documentation to support ability to repay loan obligation.

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