Does buying a third house always mean only 70% financing?
BNM's maximum 70% LTV measure concerns the third and subsequent outstanding housing financing taken by an individual. It is not simply a count of properties owned. Ask the bank to classify your existing individual and joint facilities before budgeting; the actual approved margin can be lower.
What to do next
- Bring a complete list of housing facilities, including joint accounts and any settlement evidence, to the bank.
- Ask the bank which facilities count for this application and the maximum applicable LTV.
- Calculate the actual cash shortfall from the approved financing, then add transaction costs and a reserve.
First or second financing is not automatically 90% or 100%. Do not use another person's name or hide a facility to bypass the assessment.
Sources and conditions
- Bank Negara Malaysia — third and subsequent outstanding housing financing LTV explanation ↗Online sources checked:
- Bank Negara Malaysia — 70% LTV housing measure ↗Online sources checked:
Source checks are not a bank approval, legal opinion or verification of a particular property. Check current conditions with the linked provider before acting.