💰Earning Big But No Loan? Uncover the Hidden Reason

This is a common question among property buyers and the answer might surprise you

Bank Look at Two Key Factors
When applying for a home loan, banks assess two main criteria:

1. Your Loan Eligibility

Based on your income, commitments (e.g., car loans, credit cards), and credit score.

2. The Property’s Market Value

The bank will conduct a valuation of the property you’re planning to buy.

Here’s the catch

Banks will always approve the lower of the two.

Example 1: Market Value is Lower

Loan eligibility: RM400,000

Market value of house: RM200,000

Approved loan: RM200,000

Because the bank will not lend more than what the property is worth.

————-‐——————————————-

Example 2: Loan Eligibility is Lower

Market value: RM350,000

Your loan eligibility: RM250,000

Approved loan: RM250,000

In this case, your borrowing power is the limiting factor.

𝗪𝗵𝘆 𝗮 𝗛𝗶𝗴𝗵 𝗦𝗮𝗹𝗮𝗿𝘆 𝗜𝘀𝗻’𝘁 𝗔𝗹𝘄𝗮𝘆𝘀 𝗘𝗻𝗼𝘂𝗴𝗵

A high income gives you an advantage, but it doesn’t guarantee full loan approval. Banks take a balanced approach to minimize their risks.

𝗦𝗺𝗮𝗿𝘁 𝗧𝗶𝗽𝘀 𝗕𝗲𝗳𝗼𝗿𝗲 𝗬𝗼𝘂 𝗕𝘂𝘆

Check your loan eligibility before house hunting.

Ensure the property price isn’t far from its market value.

Need Help

If you’re unsure about your loan eligibility or want a quick check on the property’s value, feel free to Get in Touch

016-803 2295 (Sara). Let’s plan your home purchase with confidence and clarity.

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