The rejection rate for housing loans is on a downward trend, contrary the belief that there are tougher credit checks on potential buyers.
The Association of Banks in Malaysia (ABM) said the rate declined from 25% in 2012 to 18% in 2014.
“This shows borrowers and lenders are adjusting better to the affordability assessments. The business of commercial banks is in the main lending or extending credit while adhering to their respective risk appetites and/or the guidelines set by the regulators. Consumers who are eligible will continue to be able to obtain financing.
“What is important is for all consumers to recognise the need to make sound decisions of their own affordability appropriate to their financial circumstances,” said ABM executive director Chuah Mei Lin. - By The Star
No comments