Highlights for Q3 2020
- Outstanding housing loans by the banking system expanded by 7.6% as at end-September 2020 to RM636.5 billion.
- Between January to September 2020, total housing loan applications stand at RM133.8 billion.
- In the same period, banks approved RM94.1 billion of house financing to about 214,000 borrowers. Of this, 52% of newly approved housing loans were granted to first-time home buyers (2013-2019 average: 41%).
- The overall housing loan approval rate stood at 72.2% as at end-September 2020 (2013-2019 average: 75.5%).
- The moderation in approval rate reflects the continued housing unaffordability issue arising from the mismatch between supply and demand of houses.
- 61% of the newly approved housing loans are for the purchase of houses priced below RM500,000 (<RM300,000: 31%; RM300,000 – RM500,000: 30%).
- By location, 74% of the newly approved housing loans are for the purchase of residential properties in Selangor, Kuala Lumpur, Johor and Penang.
- Common reasons for rejection of housing loan applications:
- Borrowers are already highly indebted;
- Borrowers have very little residual income after taking into account monthly living expenditures and existing financial obligations;
- Borrowers have poor credit history; and
- Insufficient documentation to support ability to repay loan obligation.
- Advisory assistance provided for general public prior to undertaking home financing includes Rumahku Financial Education programme by Agensi Kaunseling & Pengurusan Kredit (AKPK) to help potential borrowers understand their financial commitments prior to purchasing a home.
- For applicants who have been unsuccessful in securing home financing, Khidmat Nasihat Pembiayaan (MyKNP) by AKPK has been established to help individuals better understand the factors affecting financing applications, as well as help in raising eligibility for future financing
- Available financing assistance programmes for home buyers:
More details can be found here: https://www.housingwatch.my/04_financing.htm
A. Outstanding Housing Loans
B. Approved Housing Loans to First-Time Home Buyers
(Share of total approved housing loan accounts)
C. Composition of housing loan approvals by house price (January -September 2020)
D. Housing Loans Approval Rate by House Price