According to housing data from Bank Negara Malaysia (BNM) for the third quarter of 2018, housing loan approval rates are at the lowest in the last 5 years. BNM cites housing unaffordability and mismatch between supply and demand of houses that most Malaysians can afford to buy.
If you are finally ready to achieve your goal of buying a home this year, congratulations!But first, it’s time for a reality check. Are you financial healthy enough to get your home loan application approved?
The housing loan tenure was capped at 35 years back in 2013 and this move by BNM has tightened the conditions for many prospective homebuyers to be able to qualify for the home loan as they find it hard to demonstrate that they can afford the monthly instalments.
One of the biggest factors for banks to decide whether to approve your housing loan application is your financial health and your credit score is one of the ways for them to assess if you are financially ‘healthy’ enough to afford your own home.
While your credit score is not the only factor to determine your eligibility for a home loan, it forms an important part of the decision for your creditor to approve your home loan.
So, before you make one of the biggest financial moves in your life to own a home, it pays to do your homework before diving in.
