Credit cards, car loans why house loans denied, says expert

Many are unable to get housing loans despite the high number of unsold properties.

PETALING JAYA: A property expert says credit card commitments and car loans are among the main factors which make it difficult for Malaysians to obtain a housing loan despite the reported increase in number of unsold properties.

Malaysian Institute of Professional Estate Agents and Consultants deputy president See Kok Loong told FMT that banks were very strict in approval of loans.

“These days, it’s difficult for Malaysians to get a house loan as most of them have a lot of commitments,” he added.

This follows news last month of a woman who claimed she had applied for a housing loan 15 times over the last 10 years.

Hafiza Abdul Rahman, who gatecrashed a press conference to get the attention of Housing and Local Government Minister Zuraida Kamaruddin, said she had been rejected each time.

See said that the bottom 40 or B40 group faced the most difficulties in getting a house loan.

“Practically, the B40 group can’t get loans from commercial banks because of their low disposable income,” he said.

“It is easier for the M40 (middle 40) to get a house loan, especially if they work in the corporate world.”

Ash, 29, told FMT she would rather rent a house than own her own home.

“It’s hard to get a loan, especially when you’ve just started working. I ended up not applying anymore,” she said.

Mohd Hafidz Matdiah, who works as a consultant, said he too had decided against buying property in Kuala Lumpur, citing the high prices.

“For a limited space, it is almost RM3,000 per month, which is outrageous,” the 33-year-old said, adding that he would rather rent.