Finding the best house loan interest rates in Malaysia can be challenging, particularly with the numerous options available.

Critical terms such as home loan, housing loan, and loan tenure are essential for making informed decisions.

This guide will help you navigate the various loan types, their interest rates, and other key factors to consider when searching for your dream home.

In August 2026, several financial institutions in Malaysia offered competitive home loans and other financing options. Here’s a quick overview:

1. Best Housing Loan Rates in August 2026

These banks offer a range of housing and home loans that cater to different needs, whether you’re looking for a flexible or a term loan.

1. MBSB Property Refinancing-i and Remortgage-i

MBSB Property Refinancing-i and Remortgage-i are Islamic refinancing and remortgage facilities for homeowners who want to refinance their property or take cash out, using their home as collateral.

It offers a floating profit rate of 2.75% p.a., a financing margin of up to 90%, and no processing fee. The Product Disclosure Sheet also states that the facility is based on Tawarruq, and the monthly installment may change if the SBR/OPR changes.

a. Requirements

b. Fees & Charges

c. Benefits

For more information, please visit the MBSB Bank website.

MBSB Property Refinancing-i and Remortgage-i Product Disclosure Sheet

2. Hong Leong Housing Guarantee Scheme

The Hong Leong Housing Guarantee Scheme is a government-guaranteed home loan under SJKP for eligible first-time Malaysian home buyers, including salaried employees and non-fixed-income earners. It offers financing of up to 100%, with interest rates from 2.75% p.a. and tenure up to 35 years.

The Product Disclosure Sheet states that this facility is calculated on a variable-rate basis, and that the property will be used as security for the bank.

a. Requirements

b. Fees & Charges

c. Benefits

For more information, please visit the Hong Leong Bank website.

Hong Leong Housing Guarantee Scheme Product Disclosure Sheet

3. Maybank Islamic HouzKEY

Maybank Islamic HouzKEY is an Islamic homeownership solution designed to help Malaysian buyers own a home with a lower upfront cost and greater cash-flow flexibility. It offers up to 100% financing, no down payment, and a profit rate from 2.88% p.a., with a tenure of up to 35 years or until age 70, whichever comes earlier.

The Product Disclosure Sheet states that HouzKEY is based on the Shariah concept of Ijarah Muntahiyah Bi Tamlik, a lease contract that ends with ownership transferred via sale.

a. Requirements

b. Fees & Charges

c. Benefits

Visit Maybank website for more information

Maybank Islamic HouzKEY Product Disclosure Sheet

4. Bank Islam Baiti Home Financing-i

Bank Islam Baiti Home Financing-i is an Islamic home financing facility for Malaysians who want to buy a residential property, whether under construction or completed.

It is based on the Tawarruq Shariah concept, with a floating effective profit rate of up to 3.55% p.a., a financing margin of up to 90%, no processing fee, and no lock-in period. The Product Disclosure Sheet also states that the financing is for residential property purchase, with the Effective Profit Rate calculated on a variable or floating rate basis

a. Requirements

b: Fees & Charges

c. Benefits

You may visit the Bank Islam website for more information.

Bank Islam Baiti Home Financing-i Product Disclosure Sheet

5. Bank of China Housing Loan

Bank of China Housing Loan is a conventional term loan for buyers who want to finance a completed or under-construction residential property in Malaysia, or refinance an existing housing loan. It offers a floating interest rate from 3.88% p.a., with financing margin of up to 90% and tenure of up to 35 years.

The Product Disclosure Sheet states that the Housing Loan is a secured loan, and the residential property will be used as security to the bank.

a. Requirements

b. Fees & Charges

c. Benefits

Visit Bank of China for more information

Bank of China Housing Loan Product Disclosure Sheet

2. Understanding the Effective Lending Rate (ELR)

The Effective Lending Rate (ELR) is a critical component when evaluating home loans. It represents the total cost of borrowing, expressed as an annual percentage rate. The ELR includes the reference rate and the spread, which collectively impact your monthly repayments.

• Reference Rate: The base rate, such as the Standardised Base Rate (SBR), is influenced by Bank Negara Malaysia’s policies.
• Spread: Additional charges include credit and liquidity risk premiums, operating costs, and the bank’s profit margin.

The ELR is crucial because it affects the total repayment amount and helps borrowers effectively compare different loan products.

What is the Reference Rate?

The reference rate is a benchmark interest rate used by Malaysian banks to determine changes in borrowers’ repayments on floating-rate loans over the loan tenure.

This rate can vary across institutions, but it serves as a foundation for setting the lending rate.

Is the Reference Rate Equal to the Standardised Base Rate (SBR)?

No, the reference rate differs from the Standardised Base Rate (SBR). The SBR is a specific reference rate that standardizes the base rate across all banks.

Introduced on 1 August 2022, the SBR is directly linked to the Overnight Policy Rate (OPR) set by Bank Negara Malaysia.

This standardization aims to simplify comparing loan rates across banks.

Is the Reference Rate Equal to the Overnight Policy Rate (OPR)?

The reference rate may include the OPR, especially when the SBR is used.

The OPR is the interest rate at which banks lend to each other overnight and is set by the central bank.

Changes in the OPR directly affect the SBR and the reference rate used for loans.

What is Spread?

The spread is an additional percentage added to the reference rate to arrive at the ELR. It covers various costs and risks incurred by the bank, including:

• Credit Risk Premium: Compensation for the risk that a borrower might default.
• Liquidity Risk Premium: Compensation for the risk associated with the bank’s liquidity.
• Operating Costs: The day-to-day expenses of running the bank.
• Profit Margin: The bank’s earnings from the loan.

The spread is generally fixed for the duration of the loan unless there is a significant change in the borrower’s credit risk profile.

3. Understanding House Loan Interest Rates

Understanding the mechanics of interest rates and their impact on repayments is essential for making informed decisions about Malaysian home loans.

What are House Loan Interest Rates?

House loan interest rates are the percentage of the loan principal that banks charge.

These rates determine the cost of borrowing and are influenced by various factors, including the central bank’s policies and the individual bank’s cost structures.

How to Calculate House Loan Interest Rate?

Calculating your home loan interest rate is crucial for understanding the total amount you will pay over time.

Use a home loan calculator to determine your monthly instalments and total repayment. Here’s an example:

Example Calculation:

• Bank’s Base Rate (BR): 2.00%
• Spread: 1.50%
• ELR: BR + Spread = 2.00% + 1.50% = 3.50%

For a loan of RM300,000 over 30 years, the monthly instalment would include interest and principal repayments. Understanding these calculations can help you save money and manage your loan tenure effectively:

• Annual Interest Amount: RM300,000 x 3.50% = RM10,500
• Monthly Interest Amount: RM10,500 / 12 = RM875

Thus, the monthly repayment would include RM875 in interest plus the principal repayment.

What Can Affect Your House Loan Interest Rate?

Several factors can influence your house loan interest rate, including:

• Central Bank Policies: Changes to Bank Negara Malaysia’s Overnight Policy Rate (OPR) can directly affect interest rates.
• Economic Conditions: Inflation and economic stability can influence interest rates.
• Borrower’s Credit Score: Higher credit scores often result in lower interest rates.
• Loan Tenure: Longer loan tenures can sometimes attract higher interest rates.

4. How Should You Compare Lending Rates Across Banks as Borrowers?

Comparing lending rates across banks involves more than just looking at the ELR. Consider the following steps:

• Review the ELR and Spread: Compare the total borrowing cost.
• Understand Additional Fees: Be aware of any extra fees that might apply.
• Read the Product Disclosure Sheet (PDS): This document provides crucial details about the loan.

5. How to Plan and Compare Your House Loan Interest Rates?

When planning a home loan, consider the property’s value, the loan amount, and the loan tenure.

Use a loan calculator to estimate your monthly instalments and ensure you understand all associated fees.

Planning and comparing Malaysia house loan interest rates requires a strategic approach:

1. Research Different Lenders: Identify potential lenders and their offerings.
2. Interest Rates: Compare the interest rates offered by different banks.
3. Additional Features: Evaluate foreclosure charges and other loan features. Some loans include extra funds withdrawal or linked current accounts for easier management.
4. Read Reviews: Learn from the experiences of other borrowers.
5. Seek Professional Advice: Consult with financial advisors if needed.
6. Maximum Loan Tenure: Most banks offer up to 35 years.
7. Prepayment Options: Check if the bank allows for additional payments without penalties.
8. Insurance Requirements: Most housing loans require Mortgage Reducing Term Assurance (MRTA) or other types of insurance.
9. Flexibility: Compare loans that offer flexible repayment options, like a flexi loan or semi-flexi loan (make sure to understand the terms and conditions).

Critical Terms in Home Financing

Understanding key terms related to home financing is crucial for navigating the market:

• Outstanding Principal Balance: The remaining amount you owe on your loan, excluding interest.
• Home Loan Balance: The total amount left to pay on your home loan.
• Basic Term Loan: A standard loan with fixed interest rates and repayment terms.
• Loan Period: The total time over which you will repay the loan.
• Mortgage Reducing Term Assurance: Insurance that decreases as your loan balance decreases.

Choosing the right home loan in Malaysia requires careful consideration of several factors, including interest rates, loan tenure, and associated fees.

By understanding the options available and using tools like a home loan calculator, you can make a more informed decision that aligns with your financial goals and helps you secure your dream home.

Version: CN, BM

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Continue Reading:

1. Why My Housing Loan Got Rejected in Malaysia? (Reasons Explained)
2. Malaysia vs Singapore Property: Why Investors Still Choose KL?
3. Where Should You Retire in Malaysia? Best Affordable, Quiet and Safe Homes to Consider

The post Best Housing Loan Rates to Secure in August 2026 appeared first on IQI Blog.

When you’re planning to buy a home in Malaysia, one of the most important factors banks will consider is your Debt-to-Service Ratio (DSR). It plays a crucial role in determining your home loan eligibility, the amount you can borrow, and whether your loan application gets approved.

In this article, we’ll explain what DSR is, how it’s calculated, how it affects your home loan, and tips to improve it so you can make informed decisions before applying for a mortgage.

1. What is DSR?

DSR (Debt-To-Service Ratio) is a financial metric that measures the portion of your monthly income used to repay debts. It tells the bank how much of your income is already committed and whether you can afford new loan repayments, especially for a housing loan.

If your DSR is too high, it means you may be financially stretched and less likely to get loan approval.

2. How is DSR Calculated?

The general formula is:

DSR (%) = (Total Monthly Debt Commitments ÷ Net Monthly Income) × 100

Total Monthly Debt Commitments include:

• Car loans
• Personal loans
• Student loans (e.g. PTPTN)
• Credit card minimum payments
• Any other fixed monthly repayments
• The proposed new home loan installment

Net Monthly Income means your salary after deductions such as income tax, EPF, SOCSO, and other mandatory contributions.

📌 Note: Some banks use Gross Income instead, and may include other income like fixed allowances or rental income. Policies vary across banks.

DSR Calculation Example for First-Time Home Buyer

a) Profile

• Name: Aina
• Age: 28
• Employment: Executive at a private company
• Net Monthly Income: RM4,500 (after EPF & tax deductions)

b) Existing Monthly Debt Commitments

c) Target Property

• Property Price: RM400,000
• Down Payment: 10% (RM40,000)
• Loan Amount: RM360,000
• Tenure: 35 years
• Estimated Monthly Mortgage (at 4% interest): ~RM1,500

d) New DSR Calculation

Total Commitments (including new mortgage):
RM950 (existing) + RM1,500 (housing loan) = RM2,450

DSR = (RM2,450 ÷ RM4,500) × 100 = 54.4%

Conclusion

She is likely eligible for the loan, provided her credit record (CTOS/CCRIS) is clean and other criteria are met.

Aina’s DSR is 54.4%, which is within the 60–70% range accepted by most banks.

3. Why is DSR Important for Home Loan Approval?

Banks use DSR to determine:

• Whether you’re eligible for a loan
• How much you can borrow
• Whether you’re high risk or low risk

Here’s how DSR affects your mortgage journey:

If your DSR is above the bank’s threshold, they may:

• Reject your application
• Approve a lower loan amount
• Ask you to apply with a joint applicant

Example DSR Calculation

Let’s say your net monthly income is RM5,000, and your total monthly debt (including your proposed housing loan) is RM3,000.

DSR = (RM3,000 ÷ RM5,000) × 100 = 60%

If the bank’s limit is 70%, you are likely to get approved. But if your total commitment exceeds RM3,500 (70%), you may face rejection unless adjustments are made.

4. Why Do DSR Limits Vary by Bank?

Each bank has its own DSR threshold and income recognition method, for example:

• Standard Chartered uses Gross Income, while Maybank and RHB use Net Income.
• Some banks recognize 100% of rental income or foreign income, others only partially.
• A bank may accept 70% DSR for high-income earners, but only 40% for low-income applicants.

That’s why your loan could be rejected by one bank, but accepted by another.

5. How to Improve Your DSR

Improving your DSR increases your chances of loan approval and may allow you to borrow more. Here’s how:

1. Pay Off Existing Debts – Settle small loans or credit card balances.
2. Increase Your Income – Consider adding side income or a rental income stream.
3. Choose a Cheaper Property – Lower mortgage payments = lower DSR.
4. Extend Your Loan Tenure – A longer term reduces monthly installments.
5. Apply Jointly – Combine income with a spouse or family member.
6. Make a Bigger Down Payment – Borrow less and reduce monthly payments.

6. How the Hire Purchase (Amendment) Act 2026 Could Lower Your Car Loan Burden, and Your DSR

Here’s something many first-time buyers overlook: your car loan is one of the biggest items in your DSR (remember Aina’s RM600 monthly car commitment in the example above). In Malaysia, car loans are a form of hire purchase financing, and the rules governing them changed significantly on 1 June 2026, when the Hire Purchase (Amendment) Act 2026 came into force.

For anyone planning to buy a home, this matters because the new law changes how your car loan interest is calculated and, crucially, how much you’ll still owe if you decide to settle it early to bring your DSR down.

a. What changed?

• Goodbye flat rate and the “Rule of 78.”
  Previously, a large share of your early installments went toward interest rather than the principal. That meant settling a car loan early often left you with an outstanding balance much higher than expected.
• Reducing Balance Method and Effective Interest Rate
  Interest is now calculated on your current outstanding balance, so early settlement is fairer and more transparent; what you owe better reflects the actual cost of the financing.
• Digital convenience
  Electronic signatures and document submissions are now allowed, speeding up the process.
• Stronger fraud protection
  Lenders must now run two identity due diligence checks before approving financing.

b. Why this matters for your home loan

If your DSR is sitting just above a bank’s comfort zone, paying down or settling a car loan is one of the fastest ways to lower it. Under the old system, early settlement could be discouragingly expensive.

Under the reformed framework, you’re more likely to see a payoff figure that genuinely reflects what’s left, making “pay off existing debts” (Tip #1 above) a more rewarding move than before.

A few practical notes: 11 financial institutions and hire purchase providers were ready to offer financing under the new rules from day one, while others have a transition window until 31 March 2027 to fully adopt the framework.

A second phase of implementation is expected around September 2026. If you’re taking out a new car loan soon, confirm with your lender which framework applies before you sign.

7. Final Tips Before Applying for a Home Loan

• Always calculate your DSR first to know your borrowing power.
• Check multiple banks—loan approval chances can vary widely.
• Maintain a clean CCRIS/CTOS report. While not part of DSR, it still influences approval.

TL;DR

Your DSR is key to unlocking your dream home in Malaysia. A lower DSR means greater financial flexibility, a higher chance of loan approval, and a potentially larger loan amount. Understanding and managing your DSR before you apply could be the difference between rejection and home ownership.

Let our expert agents at IQI Global help you calculate your DSR and get the best loan options.
Fill in your details below and we’ll match you with a certified property expert who can guide you for free!

Continue reading:

• RM1Million Home With RM3K Salary? Find Out How Much Home Loan You Can Get With Your Salary!
• What can you do if your home loan is rejected?
• Real Estate 101: Navigating Home Financing through Loan-to-Value

The post What is Debt-To-Service Ratio (DSR) in Malaysia & How It Affects Your Home Loan appeared first on IQI Blog.

That sinking feeling when your housing loan application is rejected in Malaysia? Yeah, we get it. It’s like finding the perfect durian, only for it to be snatched away at the last moment.

This common scenario can leave prospective homebuyers not just disappointed, but also confused, wondering what went wrong after all the effort. Leaving these underlying issues unaddressed isn’t just a missed opportunity; it can lead to repeated rejections, wasted time, and the painful experience of watching your dream property slip through your fingers.

In this article, we will explain the “why” behind loan rejections in the Malaysian banking landscape, particularly its unique criteria such as Debt Service Ratio (DSR), CCRIS, and CTOS. By the end, you will be equipped with clear, actionable steps to understand your rejection, fix underlying issues, and significantly boost your chances for a successful home loan approval in Malaysia.

Key Takeaway

• Housing loan rejections in Malaysia are usually due to issues with the financial profile.
• A rejection is not the end, but a signal to fix the weak points.
• Improving approval chances requires better debt control and stronger credit behavior.
• Choosing the right bank and property matters too.

Estimated reading time: 23 minutes

1. Top 10 Reasons Your Housing Loan Was Rejected in Malaysia

A housing loan rejected in Malaysia often stems from one or more identifiable factors, typically related to your financial standing, application accuracy, or even the property itself. Understanding these common culprits is the first step towards turning a “no” into a “yes.”

a. Your Debt Service Ratio (DSR) is Sky-High

Debt Service Ratio (DSR) is a critical metric used by Malaysian banks to evaluate a borrower’s ability to manage new debt, calculated as your total monthly debt obligations divided by your net monthly income.

If your DSR exceeds the bank’s maximum allowable limit, often between 50% and 70%, though it varies by bank, your housing loan application will likely be rejected. This limit ensures you have enough residual income for living expenses after servicing all your debts.

i. How to Fix High Debt Service Ratio (DSR)

To lower your DSR, you can either reduce your existing monthly debt commitments (e.g., credit card balances, car loans, personal loans, PTPTN loans) or increase your verifiable net income. Consider consolidating smaller unsecured loans to reduce your overall monthly outflow, or seek ways to demonstrate additional, consistent income.

The DSR calculation example below illustrates how varying debt levels can impact your DSR:

Salary RM5,000 = Net Income RM4,500

Salary + Rental Income RM6,000 = Net Income RM5,500

Car Loan = RM800

Personal Loan = RM200

Proposed Housing Loan = RM1,500

Formula Used

DSR = Total Monthly Debt ÷ Net Income × 100

b. That Pesky Credit Score: CCRIS & CTOS Blacklist

Banks heavily rely on your credit score, which indicates your repayment behavior and creditworthiness. A low credit score is one of the most common reasons for a housing loan rejection in Malaysia. This score is primarily derived from two key reports:

• CCRIS (Central Credit Reference Information System): Managed by Bank Negara Malaysia (BNM), this system records all your credit activities over the past 12 months, including housing loans, car loans, credit cards, and personal loans, and flags any irregular or late payments. Even PTPTN student loan defaults appear here.
• CTOS (Credit Tip-Off Service): A private credit reporting agency that compiles data from public sources, including legal notices, bankruptcy records, and trade references, offering a broader view of your financial standing.

Red flags such as consistently missing due dates, high credit card utilization (maxing out credit limits), having accounts classified as “special attention accounts,” or a history of bankruptcy can all lead to your housing loan application being denied. Surprisingly, having no credit history at all (a “clean CCRIS”) can also be a problem, as banks have no record to assess your repayment capability.

i. How to Fix Your Credit Score

Obtain your latest CCRIS (via eCCRIS online or BNM kiosks) and CTOS reports to identify specific issues. Pay off outstanding debts, ensure all payments are made on time, and reduce your credit card utilization to below 30% of your limit. If you have no credit history, consider getting a basic credit card and using it responsibly for 6-12 months to build a positive record.

c. Income Woes: Insufficient or Unstable

Your income is the bedrock of your repayment capacity, and banks scrutinize it to ensure you can comfortably handle monthly mortgage repayments. If your income is deemed insufficient for the loan amount you’re requesting, or if it appears unstable, your housing loan application will likely be denied.

This is a common reason, as rising property prices often outpace wage growth, making it harder for many Malaysians, including middle-income buyers, to qualify.

Banks prefer stable, recurring income. Freelancers or those with commission-driven jobs, for instance, may face greater scrutiny due to fluctuating earnings.

i. How to make sure you have sufficient and stable income

Ensure you meet the bank’s minimum income requirements for the desired loan amount. If your income is variable, provide comprehensive income proof, at least 6 months of salary slips, bank statements showing consistent salary credits, and EPF contributions to demonstrate income stability.

If you have other verifiable income sources, such as rental income or dividends, declare them and provide proof.

d. The Dreaded Incomplete or Inaccurate Documents

One of the most frustrating yet easily avoidable reasons for a housing loan rejection in Malaysia is incomplete or inaccurate documentation. Banks require extensive financial documentation to assess your eligibility, and even simple errors like incorrect addresses or contact details can lead to rejection.

Crucially, banks need robust proof of income beyond just a salary voucher, often requiring salary slips, EPF contributions, savings account statements, and income tax declarations.

i. How to Fix Inaccurate Documents

Compile all necessary documents carefully. Use a checklist to ensure nothing is missed and that all information is accurate and up to date. Make sure copies are clear and legible.

For salaried employees, a comprehensive list includes MyKad, the latest 3-6 months’ payslips and bank statements showing salary credits, EPF statements (13 months), and the latest income tax papers.

Self-employed individuals have a longer list, often including business registration papers, 6 months of bank statements, and latest tax returns.

e. Choosing the “Wrong” Bank for Your Profile

It might sound odd, but sometimes a housing loan rejected in Malaysia isn’t entirely about your financial health, but about the bank you applied to.

Each Malaysian bank operates with its own specific set of lending policies, risk appetites, and DSR benchmarks, meaning criteria can differ significantly from one institution to another. What one bank considers high risk, another might find acceptable based on its internal credit-scoring system and preferred customer segments.

This is why a rejection from one bank doesn’t necessarily mean all banks will turn you down.

i. How to Choose the Right Bank

Don’t put all your eggs in one basket, but don’t apply everywhere at once either.

Research the eligibility criteria and DSR limits of multiple banks before applying. Mortgage brokers can be invaluable here, as they have insight into which banks are more likely to approve your specific financial profile.

Pre-assessments offered by some banks can also help gauge your chances without leaving a hard mark on your credit report.

f. The Property Itself is a Red Flag

Sometimes, the issue isn’t you, it’s the house! Banks have their own “blacklist” of properties or apply stricter criteria to certain types, leading to your housing loan application being denied. Reasons can include the property’s value not matching the asking price, its legal status, or even its physical location and condition.

For example, leasehold properties with less than 30 or 60 years remaining on the lease are often viewed as high risk by banks, making them difficult to finance because their value is expected to drop significantly. Properties that haven’t received their strata title after many years, are located in landslide or flood-prone areas, or have bad structural integrity can also be red-flagged.

Even the developer’s reputation or bankruptcy status can cause issues, as banks maintain a blacklist of developers.

i. How to Avoid Red-Flagged Property

Perform thorough due diligence on the property and the developer before committing. Check the developer’s background, including their bankruptcy status via MYEG, and look for online reviews or forum discussions.

For sub-sale properties, verify the strata title status and the remaining leasehold tenure. If buying from an individual, confirm the seller is not bankrupt.

g. Too Many Loan Applications

In the world of credit, desperation isn’t a good look. If you’ve been submitting multiple loan applications to various banks in a short period, this behavior is recorded on your CCRIS report as “credit inquiries”.

Banks interpret a high frequency of recent applications as a potential red flag, signaling that you might be desperate for credit or that other lenders have already rejected you, making them hesitant to take on the perceived risk. This can significantly lower your application score and chances of approval.

i. How to Avoid Applying to Too Many Loan Applications

Instead of blindly applying to every bank, strategize your approach. Use pre-assessment tools offered by banks or consult a mortgage broker to identify banks best suited to your profile.

After a rejection, it’s crucial to wait for a recommended period, typically 3-6 months, before reapplying. This allows you to address underlying issues and for those multiple inquiries to “cool down” on your credit report.

h. Existing Commitments: High Installments or Other Loans

Beyond the Debt Service Ratio, the sheer volume and type of your existing financial commitments can weigh heavily on your housing loan approval chances. Banks assess how much of your income is already tied up in other repayments, such as car loans, personal loans, or credit card bills.

Even if your DSR is borderline acceptable, having numerous or high-installment unsecured loans can make a lender cautious, as it reduces your financial flexibility in the face of unexpected expenses. This concern is heightened if you have a “thick bureau” (many credit facilities) with substantial outstanding balances.

i. How to manage high Commitments

Prioritize paying down your highest-interest or shortest-term debts before applying for a home loan. Consider debt consolidation for unsecured loans. This can simplify your repayments and potentially reduce your overall monthly commitment, freeing up more disposable income and improving your perceived financial stability.

I. Age and Loan Tenure: Are You Too Young or Too Old?

Your age plays a significant, though often overlooked, role in determining your housing loan eligibility, primarily by influencing the maximum loan tenure a bank can offer. In Malaysia, loan tenures are typically capped around the borrower’s retirement age, usually 65 or 70.

If you’re older, your shorter maximum tenure could lead to higher monthly repayments that push your DSR beyond acceptable limits, resulting in a housing loan application denied. Conversely, extremely young applicants with limited credit history or income stability might also face scrutiny.

i. How to Overcome Age and Tenure

If you’re an older applicant, consider a shorter loan tenure if it remains affordable, or apply with a younger co-borrower or guarantor whose age allows for a longer tenure, thus reducing monthly payments.

Younger applicants should focus on building a strong credit history and demonstrating consistent income over time.

J. Guarantor Issues (When Your Backup Isn’t Bulletproof)

For some housing loan applications, especially for first-time homebuyers or those with borderline DSRs, a guarantor might be required. However, the guarantor’s financial health is just as critical as the primary applicant’s.

If your proposed guarantor has a poor credit score, high DSR, or other existing financial commitments, their involvement can inadvertently lead to your housing loan being rejected in Malaysia. The bank sees the guarantor as a backup payer, and if the backup looks weak, the primary application suffers.

i How to Choose Your Guarantor

If you need a guarantor, ensure they have a strong financial profile, a healthy DSR, an excellent credit score, and a stable income. Have an honest conversation with your potential guarantor about their financial standing and the responsibilities involved before they commit.

2. What to Do IMMEDIATELY After Your Loan is Rejected?

A housing loan application denied isn’t the end of the world; it’s a signal that something needs attention. The smartest first move is to plan, not to panic. These four steps will help you understand why your home loan was rejected in Malaysia and set you on the right path.

a. Request a Rejection Reason from the Bank

Your first immediate step should be to contact the bank that rejected your application and politely request the reason for their decision.

While banks may not always provide detailed explanations due to internal policies, they often offer general feedback such as “insufficient income,” “high existing debt,” or “adverse credit record.”

Even vague reasons can confirm your suspicions and help you focus your efforts. Understanding the specific “why” is crucial for a targeted fix, rather than guessing what went wrong.

b. Get Your CCRIS and CTOS Reports (Your Financial Report Card)

Before doing anything else, obtain and review your latest CCRIS and CTOS reports. These reports are your financial report card, revealing exactly what banks saw when they assessed your application.

• How to get your CCRIS report: Visit a Bank Negara Malaysia (BNM) kiosk with your MyKad, or register for eCCRIS online via the BNM website.
• How to get your CTOS report: Visit the CTOS website or use their app to sign up and view your MyCTOS Score Report, which includes both your CTOS Score and CCRIS records.

Look for missed payments, high outstanding balances, signs of identity theft, or any inaccurate information that could be hurting your score. Dispute any errors immediately.

c. Review Your Documents for Errors

Sometimes the simplest mistakes are the most costly. After a rejection, re-examine every document you submitted for accuracy and completeness. A missing salary slip, an outdated bank statement, or even a typo in your contact details can be enough to trigger an automatic rejection.

Ensure that your proof of income aligns perfectly with what’s declared and that all copies are clear and legible. A second pair of eyes on your application can often catch overlooked errors.

d. Don’t Reapply Immediately

It’s tempting to immediately apply to another bank after a housing loan is rejected in Malaysia, but resist the urge. Multiple credit inquiries in a short period are recorded on your CCRIS report and can make you appear desperate, further diminishing your chances.

Instead, wait for the recommended 3-6 months before submitting a new application. This crucial waiting period allows you time to address any identified issues from your credit reports or financial profile, and for the previous inquiries to “cool down”.

3. How to Improve Your Chances for Future Housing Loan Approval in Malaysia

After understanding why your home loan was rejected in Malaysia, the next phase is to take actionable steps for improvement. This comeback plan focuses on strengthening your financial profile and application strategy to significantly boost your approval odds.

a. Master Your DSR: Reduce Debt, Boost Income

To overcome a high Debt Service Ratio (DSR), focus on two core strategies: aggressive debt reduction and income enhancement. Prioritize paying down high-interest debts, such as credit card balances or personal loans, which can drastically reduce your monthly commitments and free up more disposable income.

Consider debt consolidation for unsecured loans. Simultaneously, explore ways to increase your verifiable income, whether through a promotion, a side hustle, or by ensuring all legitimate income sources (e.g., rental income with valid tenancy agreements) are documented thoroughly.

b. Polish Your Credit Score: The Road to Financial Gold

A stellar credit score is your golden ticket. The best way to polish it is through consistent, timely payments on all your existing debts. Ensure you never miss a due date for any loan or credit card for at least 6-12 months.

Reduce your credit card utilization to well below 30% of your limit, as maxing out cards indicates financial stress. If you have a “clean” CCRIS (no credit history), start by getting a basic or secured credit card, using it for small purchases, and paying it off in full each month to build a positive payment history.

c. Get Your Documents in Order

A well-organized and accurate set of documents can make or break your application. Create a comprehensive “pro-level checklist” and keep all financial records meticulously organized. This includes:

• MyKad (clear copies).
• Latest 6 months’ payslips and bank statements (showing salary credits).
• Latest EPF statement (at least 13 months).
• Latest income tax returns (Form BE/B) with payment receipts.
• Any additional income proofs (e.g., valid tenancy agreements for rental income).
• Property documents (SPA, booking forms).

Ensure all information is consistent across documents and matches your application form.

d. Seek Professional Guidance

Navigating the varied criteria of Malaysian banks can be daunting. Mortgage brokers are invaluable allies who can significantly improve your chances. They understand the different risk appetites and lending policies of various banks, allowing them to match your specific financial profile with the most suitable lender.

A good broker can also advise you on how to best present your application and which aspects of your financial profile need the most attention. This targeted approach minimizes the risk of another housing loan being rejected in Malaysia due to applying to the wrong institution.

e. Explore Government Schemes (Especially for First-Time Homebuyers)

First-time homebuyers in Malaysia may find additional avenues for approval through government-backed housing schemes.

Programs like the “My First Home Scheme” (Skim Rumah Pertamaku) or other initiatives from institutions like BNM aim to help eligible individuals secure financing by offering higher financing margins or specific criteria.

While the specific terms and eligibility vary, exploring these options could provide alternative paths to homeownership if traditional bank loans prove challenging.

f. Consider a Stronger Guarantor (If Necessary)

If your application is still struggling and a guarantor is a viable option, carefully consider whom you choose. A strong guarantor can significantly bolster your application.

They should ideally have a stable, high income, a low DSR, and an excellent credit score.

Their financial health directly impacts the bank’s assessment of your combined repayment capability, making it easier for the bank to approve the loan. Ensure the guarantor fully understands their financial commitment and responsibilities.

g. Property Due Diligence: Research, Research, Research!

Don’t let your dream home become your biggest headache. Comprehensive property due diligence is crucial. Research the developer’s track record, check for any past issues or blacklistings, and verify the property’s legal status, especially its leasehold tenure and strata title.

Ensure the property’s valuation aligns with the asking price and that there are no hidden structural or location-based issues. Being proactive here can prevent a housing loan rejection in Malaysia due to property-related red flags.

Receiving a housing loan rejection in Malaysia can feel like a roadblock on your journey to homeownership, but it’s crucial to remember it’s often just a detour, not a dead end.

By understanding the common reasons behind these rejections, from DSR woes and credit score hiccups to documentation missteps and property-specific concerns, you gain the power to turn the situation around.

With patience, careful preparation, and a strategic approach to improving your financial profile, your dream home is well within reach. Don’t let a “no” discourage you; use it as motivation for a smarter, more successful reapplication.

4. Frequently Asked Questions (FAQs)

Don’t let a rejected housing loan keep you from your dream. Take control of your housing future and get personalized advice from IQI Global today!

Continue Reading

1. Malaysia vs Singapore Property: Why Investors Still Choose KL?
2. Where Should You Retire in Malaysia? Best Affordable, Quiet and Safe Homes to Consider
3. 7 High Rental Potential Properties in Kepong Investors Should Watch in 2026

References

1. Bank Negara Malaysia (BNM). (2017, July 18). Access to financing is not the primary issue for affordable housing. Retrieved from https://www.bnm.gov.my/-/access-to-financing-is-not-the-primary-issue-for-affordable-housing
2. Berinda Properties. (2024, July 30). What Are Your Options After Your Home Loan Application Is Denied?. Retrieved from https://www.berinda.com/what-are-your-options-after-your-home-loan-application-is-denied/
3. Chandra, C.. (2025, December 2). Why Was Your Loan Or Credit Card Application Rejected?. RinggitPlus. Retrieved from https://ringgitplus.com/en/blog/the-experts-corner/why-was-your-loan-or-credit-card-application-is-rejected.html
4. Chua, G.. (2022, February 28). Top 10 Reasons Your Home Loan Application Was Rejected In Malaysia. PropertyGuru. Retrieved from https://www.propertyguru.com.my/property-guides/top-10-reasons-on-why-your-loan-application-maybe-declined-3795
5. CTOS. (2026, April 9). Why Your Loan Got Rejected in Malaysia — and What to Check First. Retrieved from https://ctoscredit.com.my/learn/why-your-loan-got-rejected-in-malaysia-and-what-to-check-first/?srsltid=AfmBOop3MYF-i8Vi173oXGzZ9jGObMUo2UiKWxd906eu1VxnKBuH0hw1
6. FORTUNE. (n.d.). Top reasons why some homes in Malaysia can’t get a loan. Retrieved from https://www.fortune.my/top-reasons-why-some-homes-in-malaysia-cant-get-a-loan.htm
7. Hariri, A.. (2025, March 24). Can’t Get a Loan? Check If You’re Blacklisted by Banks in Malaysia. PEPS Ventures Learning Resources. Retrieved from https://resources.pepsventures.com/cant-get-loan-how-to-check-if-youre-blacklisted-by-banks-malaysia
8. iproperty. (2024, June 26). What can you do after your home loan gets rejected?. Retrieved from https://www.iproperty.com.my/guides/what-can-you-do-after-your-home-loan-gets-rejected-loancare-27923
9. Khoo, N.. (2017, December 29). Property: Seven reasons your loan application gets rejected. The Edge Malaysia. Retrieved from https://theedgemalaysia.com/article/property-seven-reasons-your-loan-application-gets-rejected
10. Lekham, D.. (2026, March 13). Tightening financing, loan rejections derail home purchases in Malaysia. NST. Retrieved from https://www.nst.com.my/property/2026/03/1396266/tightening-financing-loan-rejections-derail-home-purchases-malaysia
11. Maybank. (2019, August 21). Home Financing Rejection. Retrieved from https://www.maybank2own.com/portal/news?item_id=20
12. propertyguru. (2022, February 20). Bank Loan Execs Share Why Home Loan Applications Are Rejected. Retrieved from https://www.propertyguru.com.my/property-guides/why-are-home-loan-applications-rejected-malaysia-15953
13. Yeoh, M.. (2022, October 19). Who do we blame when our home loan gets rejected?. iproperty. Retrieved from https://www.iproperty.com.my/guides/who-do-we-blame-when-our-home-loan-gets-rejected-ctr-28464
14. Yeoh, M.. (2024, December 10). 9 Reasons Why Banks Reject Your Home Loan Application. iproperty. Retrieved from https://www.iproperty.com.my/guides/home-loan-rejection-reasons-41476

The post Why My Housing Loan Got Rejected in Malaysia? (Reasons Explained) appeared first on IQI Blog.

Real estate investment is easier than you might think; if you plan properly and get started in a timely manner, that is. It’s important to live a life of financial freedom to provide not only for your family but for yourself as well. One of many great ways to achieve this is via real estate investing.

Real estate investment is also a fantastic way to diversify your portfolio and grow your wealth. If you’re new to the world of real estate investment, here are some tips to help you get started so you can achieve that fabled financial independence!

1. Identify Your Financial Stage

Eventually, you’ll have to create some equity and start saving up if you want to build wealth effectively. There are 5 stages that you need to know where you stand financially: survival, stability , saver, growth, and income and withdrawal stage.

These stages are loosely related to your wealth that you’ve accumulated at points in your financial life cycle with the end goal of turning said net worth into income and a stable portfolio to make early or regular retirement possible whilst living comfortably. Hence, understanding your current wealth stage is vital in order to proceed to the next stage.

2. Choose a Specific Real Estate Investment Strategy

Don’t be overwhelmed by the myriad of investment strategies available to invest in real estate. Instead, choose a specific real estate investing strategy so that you can build that confidence to get started.

However, you should always identify what your financial stage is before choosing an investment strategy. Some strategies may be a perfect fit for your financial situation whereas others might not be achievable just yet.

Stage 1 and 2 (survival and stability)

Your main strategies for stages 1 and 2 are earning extra income and learning about the basics and the ins and outs of real estate while avoiding losses.

Stage 3 (saver)

The objective is to dramatically increase your savings rate by reducing expenses and/or increasing income.

Stage 4 (growth)

Your main goal here is to grow your net worth by making worthwhile investments.

Stage 5 (income or withdrawal)

By this stage, you’ve already understood where you need to turn some of your existing wealth and equity to generate more income with less hassle and less risk. In addition, you’ve accumulated a large enough net worth to be financially independent and to enjoy an early retirement!

3. Pick a Target Market

For starters, it’s recommended that you evaluate a target market that’s preferably near your residence to invest in. If prices seem too high in your local neighbourhoods, do venture out of your core market and look for other potentially high yielding markets elsewhere.

Consider factors such as location, condition, and potential for appreciation when selecting a property. It’s also helpful to work with a real estate agent who has experience in the local market and can help you find the right property.

Do pay special attention to prime properties as their value will continue to rise and high rental rates are virtually guaranteed due to its ease of access to facilities, amenities and convenience such as public transportation!

4. Decide Investment Criteria

Once you have a good understanding of real estate investment, it’s time to create a plan and set your investment goals. Determine your budget, risk tolerance, and investment timeline. Consider the type of property you want to invest in, whether residential or commercial, and choose a location that has the potential for a high return on investment.

In real estate investing, it’s recommended that you create a written investment profile, which can be shared with any potential partners or investors who are going to bring you property leads.

The profile should list the target property that you’re looking for. Secondly, list the target terms to know what kind of property you want and what kind of numbers or metrics would make that property a good deal.

5. Build Your Team

Real estate is first and foremost a team sport. Whilst a team is vital to the success of your real estate investment business, you should still be mindful of your business’ financial capabilities and not to hire too many employees especially if you’re just starting out.

Instead, hiring independent contractors such as repairmen, CPAs and attorneys will bring value to your business while saving on hiring costs.

6. Look Up Financing Options

There are many financing options in real estate as compared to other forms of investing such as mortgages, using cash, or partnering with other investors. The type of financing you choose will depend a lot on the prior steps which includes your financial situation, strategy, and risk tolerance.

7. Raise Cash & Reserves

Although it’s tempting to use high-leverage scenarios, relying solely on no-money-down strategies for your real estate investment business is risky, and it’s wise to save cash for reserves. The amount of cash you need depends on your strategy, pricing, and property criteria in the market that you’re going after.

Therefore, you need to always have money available in order to purchase good deals. In addition to that, getting a partner who puts up cash for down payment and clear communication with each other is also important to achieve your expectations and goals.

8. Create a Plan to Find Deals

A recommended plan is to create a budget for marketing to buy up good deals and create some marketing campaigns to bring in more of those deals. It’s especially important to be creative when planning and creating enticing marketing campaigns as opposed to the futility that comes with throwing money at a poorly-designed campaign especially when you have a limited marketing budget.

On the other hand, if you have a sufficient budget and are willing to spend on marketing, you probably have enough to create a decent marketing campaign(s) to help you buy more deals.

9. Schedule Time & Prioritize Next Actions

This step is to help you keep all the information organized and effective, and take action on it. After you’ve scheduled time for your work, the next step is to prioritize the next action that you’re going to do within that period of time. Action management is not the same as time management, therefore you want to spend your time only doing actions that will progress your goals. Prioritize some actions and de-prioritize others.

Becoming a real estate professional will be easier if you follow the above steps as well as familiarizing yourself with the procedures. Be sure to review your financial situation and define your goals to achieve success and become financially free.

Looking to learn the ins and outs of real estate? We at Juwai IQI are here to help you hone your skills. Join us today!

The post How to Get Started in Real Estate Investment appeared first on IQI Blog.

Check out this article to know more about the updated OPR for 2022!

What is the Overnight Policy Rate (OPR)?

As of May 6th, Bank Negara Malaysia has maintained the overnight policy rate (OPR) at 1.75%. Despite the impact of the COVID-19 pandemic, the central bank said the global economies continued to strengthen, including Malaysia.

As widely expected by economists, such as Juwai IQI’s Chief Economist Shan Saeed, said Bank Negara Malaysia had made plenty of OPR reductions, and it took a good 12 to 15 months for the policy lever to make its impact on the economy.

This, it is expected to bring a lot of positive effects on the Malaysian economy, including the BLR and Malaysian Ringgit exchange rate.

How does it affect housing loans?

As a homeowner, the cost of borrowing will be lessened. A lower OPR would trigger banks to adjust their lending base rate (BLR) and base financing (BFR). This would then indirectly affect the interest rates – which means lowered costs for borrowing or refinancing an existing home loan.

Lowering the OPR will boost the economy overall.

First of all, why did Bank Negara Malaysia decided to lower the OPR? It might be due to boosting the economy because when the OPR is lowered, the interest rate of any savings will also be lower too.

Through such development, people will be more willing to withdraw money from Fixed Deposits and focusing on investments.

Naturally, the first choice of investment would be property due to the stability of it. If you are considering investing in the property market, you might be interested in reading more about the “Top 9 States in Malaysia for an Investor to Consider in 2021.”

If you do not have any plans on buying a house, you should probably start a plan.

Why do you ask?

Because by lowering the OPR, the action will impact the house loan interest too.

For homebuyers, the house loan’s interest is quite a high proportion to the loan. Yet, once the OPR is lowered, the bank will lower the interest rate and immediately inform the buyer about the new rate and monthly payment amounts.

If you are a house buyer and did not receive any notices within the first three or four months, you might need to check in with the bank.

In layman terms, lowering OPR allows homebuyers more savings than their house loan’s interest.

The opportunities for investors

Currently, the property overview in Malaysia is heading towards where supply is more than the demand. For an investor, you can grab the chance to invest at the moment, and once the momentum of demand is higher than the supply, you can earn twice as usual.

In conclusion, the decision to lower the Overnight Policy Rate is to encourage every Malaysian to spend or invest through any bank of their choosing –  allowing the boost on the fund’s liquidity and assisting the economy’s growth.

Interested in investing in a property in the capital city but can’t make up your mind on where to invest? Please leave your contact details, and our agents will contact you as soon as possible and provide a free consultation.

The post OPR maintaining at 1.75% – how does it affect the property market? appeared first on IQI Blog.

Everyone needs to buy things. Sometimes its small things like food, clothes, phones, and groceries; other times its big things like, cars, jewellery, designer fashions, and a house.

When it comes to big investments, the most common way of arranging finances is by taking out a loan from the bank. But before you do that, you should take a look at the interest rates.

Recently, Bank Negara Malaysia (BNM) released the latest Base Rates, Base Lending Rates and Indicative Effective Lending Rates of some of the major banks in Malaysia, as of 5 April 2019. Below we have listed out those rates for you.

Read Also

What Do Banks Look For In A Loan Application

What can you do if your home loan is rejected?

Six ways to increase your chances on getting a home loan approved

Note:

*Indicative effective lending rate refers to the indicative annual effective lending rate for a standard 30-year housing loan/home financing product with financing amount of RM350k and has no lock-in period.

So now that you have this information, you can make a more informed decision when looking for a loan type that best suits you. Please do note that the above is for your reference only. If you want the latest and most accurate rates, then be sure to consult the relevant banks.

Also, make sure you regularly check the loan rates for major banks so that you can find the best option that matches your financial criteria.

Check out the official Bank Negara website to get the latest data: https://www.bnm.gov.my

The post Which bank gives the highest rate of interest in Malaysia? appeared first on IQI Blog.

Let’s set the situation: you found your dream home, you’ve gotten all your finances in order, and what’s more, your dream house is well within your budget! You fill up the necessary forms, hand them to the bank and then weeks later, you find out that your loan request has been rejected.

When that happens, the first thing you ask yourself is why. Why did the loan request get rejected? You’re left wondering, what went wrong?

In this article, firstly, we are going to explore the reasons why a loan may be rejected; and secondly, what you can do to prevent it from happening again.

First let’s take a look at:

Why did your loan get rejected?

1. You don’t have a steady job/income

Banks will look at whether an applicant has an unstable employment history or whether they have a stable source of income when they consider a loan application. The reason being that, to a bank, a stable job and/or a source of income, means you will be able to keep up with your monthly payments.  If you have a tendency to change jobs every six months or you don’t receive a regular income, it raises red flags to a bank. This can be especially problematic for freelancers or self-employed individuals.

2. You might have applied to the wrong bank

Different banks have different requirements and criteria for the approval of a loan application. This is on top of sticking to rules set by Bank Negara Malaysia. This could be anything from their minimum age requirement and not having enough income, to the cost of the property itself.

3. You have too many loan commitments

If you already have a significant number of loan(s)/debts that you are yet to pay off, like student loans, car loans, credit card debt, or personal loans, then banks are unlikely to give you a housing loan. While different banks have different DSR caps, you should try to make sure that your DSR does not exceed 65%-70% of your net salary. If you really need a loan, then consider taking a longer tenure to reduce the amount you need to pay monthly.

4. Your credit score isn’t good

Banks tend to look at your CTOS and CCRIS reports, so that they can trace any late or overdue payments and your outstanding balance for the month. Through this, bank officials are able to evaluate your credit risk and gauge whether you are a reliable borrower and how likely it is that you will repay your loan. So, if your credit score is low, it decreases your chances of getting a home loan approved.

5. You don’t have any credit record

We found out what happens if your credit score is low, but what if you don’t have a credit record at all? Some of us don’t like to have a credit card or other financial commitments, due to the fear of overspending. While it is a good thing in its own way, it does not help you when you are applying for a home loan.

Why? Unfortunately, without past payment records, the bank won’t be able to determine whether you will pay back your dues on time. Banks look at people without a credit score as a poor credit risk!

The best way to solve this issue is to consider credit facilities such as credit cards, just so that you can start building your credit history. You can also consider using other financial facilities such as opening a savings or fixed deposit account, in order to increase the bank’s confidence in you.

6. You didn’t submit the right documents

When applying for a loan, it is vital that you submit the right documents with the right details. So make sure that the application is done properly, to avoid any unnecessary hassle.

Double check your application form and submit all the required documents to the bank’s representative.

Some of the documents you will need to submit include:

• A copy of your NRIC or Passport.
• Income documents such as salary payslips, salary crediting bank statements, commission statements, appointment letter, EA form and so on.
• A complete and accurate application form.

So what should you do next?

1. Look at your credit report and determine any pitfalls

Get your CCRIS and/or CTOS report and look through it with a fine toothcomb. Even if you happen to have a good credit core, there may be other factors that might skew your report, such as past loan rejections. This can be especially bad for those who tend to submit loan applications to multiple banks. It’s best if you wait about 3-6 months before applying for another loan.

You should also concentrate on clearing up any other debt you might have such as credit card debt or other loans you have under your name.

2. Ask the bank

The best way to solve a question is by asking it. If your loan application is rejected by a bank, you can ask them for the reason(s) why they rejected it. This way you will know what needs to be rectified and you can do better next time you apply for your loan.

3. Fix any minor errors

Sometimes banks will reject loan applications because of minor errors such as wrong information on a form, unclear copies of your NRIC or Passport, faulty or wrong signature and so on. If that is the case, take the simple steps to correct them.

4. Find a bank with a DSR that matches yours

One very common reason for banks to reject a loan approval is that the applicant’s DSR (Debt to Service ratio) is higher than the bank’s maximum allowable DSR. Every bank has its own guidelines for acceptable DSR.  If your DSR is the problem, don’t worry, you can take steps to improve your DSR like, reducing your current debts or consolidating your unsecured loans and credit card bills.

5. Prepare at least 6 months’ worth of documentation

Whether you are a salaried employee, a freelancer or an entrepreneur, be scrupulous in your record keeping of financial information. This will be extremely helpful when the bank asks you for proof of financial capability.

It would be best for you to keep records of the last 6 months’ documentation of the following:

• EA Form/Form BE/Form B
• Salary slip/proof of income
• EPF statements
• Bank account statements

6. Stay updated on Bank Negara Malaysia’s latest borrowing regulations

Bank Negara Malaysia (BNM) has many borrowing regulations that all banks in Malaysia must follow. The most significant of BNM’s revisions happened in 2014. Do your own research and be sure to familiarise yourself with the necessary information on BNM’s rules of borrowing. It will be a big help when you apply for your loan.

7. Re-apply

Once you have all of your affairs in order, you are free to re-apply for your home loan. We recommend enlisting the help of a real estate agent or negotiator. They are trained professionals who have dedicated their careers into understanding the ins and outs of the real estate and the property market. They will be more than happy to help you with your home loan application and guide you through the entire process.

Want more advice on home loan applications?  Talk to us, us a message at hello@iqiglobal.com or give us a call at 012-299-6155 or 037-450-6655.

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Looking to buy a house but worried about getting a loan? Now might be the best time to get one because the loan has become easier!

Housing and Local Government Minister Zuraida Kamaruddin revealed that Bank Negara Malaysia (BNM) is preparing new guidelines meant to ease the housing loan requirements for home buyers.

This came after a discussion between the Housing and Local Government Ministry, the central bank, the Ministry of Finance and the Employees Provident Fund. The decision comes after consideration being given to the number of unsold completed residential units in Malaysia.

She stated that the outcome of the meetings was that BNM would prepare a preliminary paper which would give brief guidelines for the industry to have more relaxed borrowing schemes, (to help) ease the difficulties for home buyers to get loans.

While these guidelines are still in the preparation stage, Minister Zuraida stated that she expects the final proposal to be ready by August 2018.

This is a bold move on the part of the Malaysian government, and will allow many more young buyers to become homeowners. Will it make a major difference in the industry? Let us wait and see.

Want to find out more about what’s going on in the Malaysian real estate industry? Send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.

Liked what you read? Check out this article next: How zero-rated GST Will Affect Malaysia’s Property Market

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