I did not really think there is a need to write about this but then again a friend said that now the Finance Ministry is the ‘approver of last resort’ when it comes to home loans. They could change the decision of banks. Frankly, I do not think so. At most, they (Finance Ministry) are trying to help the first-timers who perhaps could qualify but does not possess what the banks usually need for home loan approval; consistency in money management and income. If the income is up and down all the time, then it will not be that easy to get the loan application approved, even if the total salary per year is equivalent to RM60,000 per year for a RM5,000 salary per month and the home loan required is just RM300,000.
Article in thesundaily.my here. Finance Minister Lim Guan Eng said that any applicants who face difficulty in getting loan approvals should refer to the finance ministry. “If you have difficulty getting loans, refer to us. We will check with Bank Negara and the bank on why you are not getting the loan. We want to encourage loan giving. Give us the list of the banks which refuse to give out loans. We will check with the banks. If justified, we may consider further action.“ He also reiterated what there should be any excuse for banks to subject applicants to stringent procedures. He also said that the government is fully committed to reduce the number of unsold properties too. Article in thesundaily.my here.
Reminder, he said procedures, not requirements… If you do not qualify, you still do not qualify… I also seriously do not think the Finance Ministry will APPROVE or force the banks to approve you if you do not qualify yeah. We do not need another sub-prime crisis because we should have learnt from what happened in that most advanced economy in the world. What could be the cause for non-approval? Here’s one: Expenses vs Salary not compatible. Let’s recognise that banks are here to lend us but they are not here to subsidise us after we have spent all the money which could have been used for loans yeah. Happy investing and well, complaining to the Finance Ministry if your concern is legitimate.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
Next suggested article: Personal finance is critical during the early years