KUALA LUMPUR: The Association of Banks in Malaysia (ABM) has refuted allegations that house buyers are finding it harder to obtain a housing loan and that loan approval time is increasing.
ABM said banks have always been supportive in providing home loans to all eligible borrowers. The overall housing loan approval rates remains high at 73% of the applications in the second quarter of 2017. Further, 72% of housing loan borrowers are first-time house owners under the affordable home category.
“For the first eight months of 2017, commercial banks approved over RM42.2 billion and disbursed RM39.5 billion in loans for the purchase of residential properties. Financing therefore remains available for eligible borrowers,” ABM said in a statement yesterday, in response to claims by Real Estate and Housing Developers’ Association (Rehda).
ABM said its member banks take an average of two to nine working days to process a housing loan application with complete documentation submitted by the applicant.
“For unsuccessful applicants, they are generally informed of the status of their application within one to two working days. Therefore, the 60-90 days taken for loans approval as stated by Rehda is not reflective of the speedy approval process of housing loans by banks,” said ABM.
Extensive information including statistical data on housing loans can be obtained from the Housing Watch website at www.housingwatch.my.
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