Financing Performance
Highlights in the 4Q 2018
  • Outstanding housing loans by the banking system expanded by 7.6% as at end-December 2018 to RM559.0 billion.
  • Financing remains available for eligible borrowers, with 69% of housing loan borrowers being first-time owners of properties priced below RM500,000 (<RM250,000: 52%; RM250,000 – RM500,000: 27%).
  • In 2018, banks approved RM133.0 billion of house financing to about 350,000 borrowers.
  • The overall housing loan approval rate remains above 70% as at 4Q 2018 (average 2013-2017: 75.7%).
    • The lower than 5-year’s average approval rate reflects the issue of housing unaffordability 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 (<RM250,000: 23.8%; RM250,000 – RM500,000: 37.2%).
    • By location, 75% of the newly approved housing loans are for the purchase of residential properties in Selangor, Kuala Lumpur, Johor and Penang.

Source: Bank Negara Malaysia


Source: Bank Negara Malaysia




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 past track record or financial indiscipline; and
  • Insufficient documentation to support ability to repay loan obligation.

Source: Bank Negara Malaysia