Third Loan 70%!!On a third loan, it's already quite hard to get an 80 per cent LVR now. For a first loan, banks usually lend up to 90 per cent of the house value, or even up to 100 per cent in some cases. The country's biggest mortgage players by market share are Public Bank Bhd, CIMB Bank Bhd and Maybank.
Bank Negara Malaysia has put in place a rule that allows banks to lend only up to 70 per cent of the house value from today (4 Sept 2010). The new mortgage lending rule, which applies only to borrowers taking up a third housing loan, is meant to curb excessive investment and speculative activity in urban areas. While Malaysia is not experiencing a general property price bubble, targeted pre-emptive measures are appropriate to moderate the increases in property prices that are evident in select locations, arising from purchases that are speculative in nature.
The residential property prices in the country had increased steadily in tandem with economic development and rising household income. In the more recent period, however, certain specific locations, particularly in the urban centres, have experienced faster growth, both in house prices and the number of transactions. Supporting this trend has been the increase in financing for multiple-unit purchases by a single borrower. This suggests investment activity that is of a speculative nature.
The residential property prices in the country had increased steadily in tandem with economic development and rising household income. In the more recent period, however, certain specific locations, particularly in the urban centres, have experienced faster growth, both in house prices and the number of transactions. Supporting this trend has been the increase in financing for multiple-unit purchases by a single borrower. This suggests investment activity that is of a speculative nature.
