According to the recent news reported by New Straits Times, property experts see the new Skim Pembiayaan Fleksibel (SPEF) for the 1Malaysia People’s Housing Programme (PR1MA) as a great start to address the issue of home buyers who are unable to secure housing loans. Based on the data collected, the rate of housing loan approvals against applications stands at 50.2 %, meaning half of the applicants cannot get their loans approved for various reasons.
Those applicants failed to get the loan approve are due to the reasons as below:
- Low scoring – Banks analyse the customer’s profile based on age, education level, marital status and so on.
- Unfavourable credit score – Central Credit Reference Information System ( Ccris ) report shows the behaviour of the applicants. If the credit score is lower than expected by the lender, therefore the chance of securing a home loan is pretty much slim to none.
- Bounced cheques for 2 or more times in the past 12 months
- Bankruptcy – A person been declared bankrupt, the record would permanently appeared in CTOS as reference. The person will not be able to get any new loans, refinance or top-up any mortgage facility.
- Debt service ratio (DSR) – Banks used DSR to evaluate applicants’ affordability level. ( Formula : [Total Commitement + New Application] / Net Income )
- Incomplete required documents or submit wrong documents
- Income insufficiency or instability
- Apply loan within the period of employment less than 6 months