ARE MALAYSIAN BANKS
Yes, but don’t expect banks to loosen their lending criteria in future, says financing expert and former banker Gary Chua during a talk at MAREC ’17 (Malaysian Annual Real Estate Convention 2017 ) recently in Kuala Lumpur. “Why? The reality is the Malaysian lending market is still the most lenient in the world. Many other countries’ banking policies such as Singapore and Hong Kong are a lot more stringent than us. As our economy becomes more advanced, our banking lending system would become more like a developed nation meaning lending criteria would be stricter in future.”
Malaysians can still enjoy 90% margin financing for first 2 home loans whereas the Loan-to-Value (LTV) margin in other countries are lower. Good news: Despite the stricter criteria, you can still get a loan if you have the right knowledge. The following are 7 secrets Chua shared:
It’s a score engine that takes into account all your profile and total borrowings as well as history. Loan applications are now centralised at the banks’ headquarters credit department which depends heavily on your score. When you apply for a loan, you will fill up a form with information that the score engine captures and assign a score.
If you score well, you are eligible for the maximum margin i.e. 90% for first 2 loans and you will also get the best terms such as lower pricing/interest rate.