Be lenient with house buyers without payslips, banks urged

While reminding banks that not all trades come with salary documentation, the House Buyers Association advises developers not to build houses that are too costly.

PETALING JAYA: The National House Buyers Association (HBA) has backed a call for banks to be lenient in vetting housing loan applications from those who have additional incomes but not the relevant documentation as proof.

Its honorary secretary-general Chang Kim Loong today said people such as “pasar malam” (night market) traders, who did not necessarily earn a regular income as they were subject to good and bad business periods, might not have evidence of the amounts they earned, although they made enough to report for tax purposes.

There were also people who took on a second job such as driving for ride-sharing services, engaging in multi-level marketing activities and selling cakes online where they might not get payslips, he said.

“The banks can perhaps carry out their own evaluations of these side-jobs and their viability, taking these into consideration when people apply for loans,” he told FMT.

Over the weekend, Real Estate and Housing Developers Association (Rehda) past president Ng Seing Liong had said banks should be more lenient in giving loans to new home buyers by considering additional household incomes earned.

He said a person should be allowed to declare his part-time business to the bank for consideration as some trades did not have payslips.

Chang said some banks presently did consider an applicant’s additional income from sources such as rental payments, as long as there was documentary evidence of the proceeds.

He said it was understandable that banks needed to be prudent and responsible in approving financing for those who were eligible.

“But we hope that in the case of those who don’t have documentary proof of income, the banks can evaluate their side incomes and take that into consideration.”

Chang also said developers needed to understand market needs and sentiments, and avoid building too many properties that most people could not afford.

“Focus more on building homes which are priced between RM150,000 and RM300,000 each, and up to RM350,000 in prime locations,” he said, adding that it would make it easier for people to get loans.

He also advised prospective home owners to assess their repayment capabilities while maintaining minimal living standards and not over-commit to a property they could not afford. -FMT