Highlights for 2019
- Outstanding housing loans by the banking system expanded by 7.3% as at end-2019 to RM604.3 billion.
- In 2019, total housing loan applications in volume term increased by 3.4%, reflecting higher interest to purchase houses amid the Home Ownership Campaign, discounts and stamp duty exemptions, among others.
- In the same period, banks approved RM158.1 billion of house financing to about 366,000 borrowers. Of this, 53% of newly approved housing loans were granted to first-time home buyers, which is much higher than the 2013-2018 average share of 41%.
- The overall housing loan approval rate stood at 73.5% as at end-2019 (average 2013-2018: 75.8%).
- 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, 75% 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 detail can be found here.
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 (2019)
D. Housing Loans Approval Rate by House Price
1 The approval rate is the ratio of the number of housing loan applications approved to the number of housing loan applications received by the banks. The ratio is derived using moving average method, based on monthly data submissions from banks to Bank Negara Malaysia.