70% Margin of Finance for Third and Subsequent Property Purchase

Nov 04, 2010 14 Comments by

Now Malaysian need to pay more down payment to purchase third and subsequent property after the Bank Negara Malaysia said on 03 Nov 2010.

70% MOF for 3rd and Sebsequent Property Purchase

The central bank announced with immediate effect on 04 Nov 2010 to implementation of a maximum loan-to-value (LTV) ratio of 70% for people buying their third or more house, meaning those wanting their third property onwards have to come out with their own cash amounting to 30% of the value of the house.

“Financing facilities for purchase of the first and second homes are not affected and borrowers will continue to be able to obtain financing for these purchases at the present prevailing LTV level applied by individual banks based on their internal credit policies,” Bank Negara said in a statement yesterday.

The central bank said at the national level, property prices had increased steadily and remained manageable compared with the historical trends but for certain hot locations, particularly around the urban areas, faster growth in prices and transactions had been seen.

“This is further supported by an increase in financing provided for multiple unit purchases by a single borrower, suggesting increasing investment activity that is of a speculative nature,” it said.

Sources from The Star Online

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14 Responses to “70% Margin of Finance for Third and Subsequent Property Purchase”

  1. Charlene says:

    Hi Person in charge,

    I purchased 2 houses jointly with my sisters, may i know if I would be falling under this category with MOF of 70% if I purchased the 3rd property?



  2. henri liew says:


    Base on Charlene cases, if one of the property fully settlement and closure of the Housing loan. Will she still consider 3rd property ? or 2nd property with 90% margin ?

    I have the same situation with Charlene.


  3. lee says:

    if got 2 houses name and only one house got loan. consider can only get 70% loan?


  4. Fiona says:


    From the 2 feeback as above, understand 70% margin is based on the load borrower for 3rd property & above.

    Will SPA related to this? 1) For instance, A, the loan borrower is entitled for 90% margin of borrowing. But the SPA name is joining with B, whom hv more thn 3 property. Will bank take into account of this? 2) Can borrower b party A & SPA name in party B?


    • Malaysia Loan says:

      Hi Fiona,
      Answer 1: Yape the bank will consider both borrower and owner name.
      Answer 2: If you want to have 90% then Party B can’t have name in S&P and loan.

  5. Nicole says:

    May I know does the 70% margin cap scheme apply on the commercial properties investment?

  6. YY says:


    I am in the process of selling my 2nd property, and at the same time share with my bf bought a new properties. this is his 4th property. My question is , as my bf name couldn’t loan 90%, can i still enjoy 90% of loan?if i can’t then if i bought another properties with my own name, am i entitle for 90% loan due to my 2nd property is in the progress of doing documentation.

    • Malaysia Loan says:

      Hi YY,
      May I know your bf previous properties is residential or commercial unit? If commercial unit no issue on that. If the properties is under residential then he must fully settle the outstanding loan for at this 2 properties. You shouldn’t be any issue to apply 90% margin since u are only second properties but you can’t joint name with ur bf.

  7. mat salleh says:

    Will this regulation affect government loan? I’m planning to buy 3rd property using government loan.

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