Financing rule · PROPERTY GUIDE

Why a third housing loan may be capped at 70% LTV

Count outstanding housing facilities, calculate the larger cash gap and test affordability before investing.

Written and reviewed by Vivien Lim Sze Ting, REN 43762 · Reviewed 2026-09-28

Bank Negara Malaysia introduced a maximum 70% loan-to-value ratio for a borrower's third and subsequent outstanding house financing facilities. First and second home financing remain subject to each bank's prevailing credit policy.

The rule concerns outstanding housing financing, not simply how many properties someone has ever bought. A 70% margin means the buyer must plan for at least the price-to-loan gap plus legal, stamp duty, valuation and other transaction costs; a lower valuation can widen the gap.

Ask banks to assess the exact borrower and property before paying a non-refundable amount. Approval, rates and debt-service assessment are not guaranteed by the 70% ceiling.