“M40 homebuyers in Malaysia face rising loan rejections, with 16–30% of applications for RM300k–RM500k homes denied, says Rehda 2025 survey.”
Kuala Lumpur, 22th September 2025, 11.26am – Middle-income households (M40) are facing mounting challenges in owning homes, as bank loan rejections remain highest for properties priced between RM300,001 and RM500,000 — a segment largely targeted at first-time buyers.
According to the Property Industry Survey for the first half of 2025 released by the Real Estate and Housing Developers’ Association (Rehda), 71% of developers reported their buyers struggling to obtain end-financing, with rejection rates most severe in the RM300,001–RM500,000 category.
Rehda president Datuk Ho Hon Sang said the survey showed that 16% to 30% of loan applications were turned down for homes in this range, with the highest rejection levels recorded for units priced between RM300,000 and RM400,000 — still considered within the affordable segment.
While developers did not specify the reasons behind these financing hurdles, Rehda former president Datuk NK Tong highlighted structural issues affecting genuine buyers.
“For homes priced at RM300,000 and below, applicants must have a household income not exceeding RM10,000 to qualify. While this ensures affordability, banks often prefer lending to stronger-income buyers, leaving some lower-income applicants rejected,” he explained.
Tong described the situation as “ironic,” noting that those most in need of affordable housing are the very group that frequently fails to secure financing.
“We want to help the people who can’t afford, but because they can’t afford, they don’t get the loan,” he said.
