by Sara
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 youโre planning to buy.
Hereโs the catchBanks will always approve the lower of the two.
Example 1: Market Value is Lower
Loan eligibility: RM400,000Market value of house: RM200,000Approved loan: RM200,000
Because the bank will not lend more than what the property is worth.
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Example 2: Loan Eligibility is LowerMarket value: RM350,000Your loan eligibility: RM250,000Approved loan: RM250,000In this case, your borrowing power is the limiting factor.
๐ช๐ต๐ ๐ฎ ๐๐ถ๐ด๐ต ๐ฆ๐ฎ๐น๐ฎ๐ฟ๐ ๐๐๐ปโ๐ ๐๐น๐๐ฎ๐๐ ๐๐ป๐ผ๐๐ด๐ตA high income gives you an advantage, but it doesnโt guarantee full loan approval. Banks take a balanced approach to minimize their risks.
๐ฆ๐บ๐ฎ๐ฟ๐ ๐ง๐ถ๐ฝ๐ ๐๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐ฌ๐ผ๐ ๐๐๐
Check your loan eligibility before house hunting. Ensure the property price isnโt far from its market value.
Need HelpIf you’re unsure about your loan eligibility or want a quick check on the propertyโs value, feel free to Get in Touch [016-8032295] (Sara). Letโs plan your home purchase with confidence and clarity.
If you are considering purchasing a property in Ipoh, you can also browse my list of [House for Sale in Ipoh] to see available properties.
