Bank Negara, state governments work on financing for affordable homes

The central bank in a statement Thursday said it has been engaging with various state authorities with regards to the issue of financing for affordable homes.

"The Credit Counselling and Debt Management Agency (AKPK) has also been providing advice to the applicants to rationalise their debt levels and educating them on prudent financial management.

"In addition, it is important for borrowers to disclose accurate material information with regard to their financial position (including their credit history) when applying for house financing to ensure objective assessment by the financial institutions," it said in a statement.

BNM also said the assessment by banks on borrowers is partly to assist them in ensuring that they have the capacity to service the loan throughout its tenure.

"The assessment takes into account the applicant's income after statutory deductions, expenditure on necessities and all debt obligations from banks and non-bank lenders.

"This is to ensure that these borrowers can continue to service their obligations and have sufficient financial buffers for living expenses and are able to protect themselves against rising costs and unexpected adverse events, including foreclosure of homes."

It suggested that borrowers can compare housing loans packages offered by various financial institutions for the best price.

"Some banks have also introduced housing loan products such as first home scheme for specific target markets including young married couples, youth and the low income.