KUALA LUMPUR: First time house buyers must have the adequate down payment, a good credit record and financial capability to make monthly payments in order to secure the housing loan.
The Association of Banks Malaysia (ABM) said on Wednesday certain commercial banks are offering special housing loan packages to suit the needs of first time home buyers.
It said these buyers should shop around to find a financing package which best suits their needs. They should work with their financiers when making the suitability and affordability assessments for any facility applied for to pave the way for more robust financial management on the part of the buyers.
“Commercial banks are committed to playing their role in this process,” said ABM, adding eligible first time home buyers would continue to be able to obtain financing.
However, it pointed out such buyers must recognise the need to make sound decisions of their own affordability appropriate to their financial circumstances.
The ABM was clarifying a recent report on the call for banks to be more flexible in providing loans to first time house buyers.
“Consumers are also encouraged to fully and accurately disclose all material information with regard to their financial position when applying for a home loan.
“In conducting affordability assessments, commercial banks take into account the applicant’s income after statutory deductions, expenditure on necessities and all existing debt obligations from banks and non-bank lenders,” it said.
ABM added that for self-employed applicants, the banks would also take into account their proof of savings and regular income sources.
It also suggested these house buyers to consider applying for government schemes such as “Skim Rumah Pertamaku” for assistance in their property purchase.Source: The Star
Published on: Wednesday, 2 March 2016