Getting a Home loan in Malaysia (ps: the answer is in your credit score)


Applying for a home loan in Malaysia can be quite daunting knowing that the prospect of your application being rejected is just around the corner. Want to know what our local banks CIMB, Maybank, OCBC, Public Bank, RHB, Citibank, HSBC considers before granting a home loan? They check your credit score. Not just BNM’s CCRIS, but do read on.

The process of getting your home loan approved by the bank can be a daunting experience. It is important to know the factors that banks look into about you when they are in the decision making process. Before submitting your request, it is best to have all these factors in check. One of these factors that banks look into is your credit score. In Malaysia, most banks uses both CCRIS and Credit Reporting Agencies (CRA). Essentially, your credit score points tells the bank how likely you are to pay them back. So the higher the score, the more likely you are to pay them back. It is our aim as consumers to have a good credit score to improve our financial attractiveness. This makes having a good credit score an important element to watch out for when you are looking for a home loan from a bank.


We recently had a chat with Dennis Martin, CEO of a credit reporting agency company called CTOS. Originating from New Zealand, Dennis has many years of experience with banks and credit bureaus in South East Asia before he began CTOS. CTOS was born in 1990 and is currently Malaysia’s Leading Credit Reporting Agency(CRA). Now, CTOS has over 9 branches across the country and is under the extent of the Credit Reporting Agencies Act 2010. Dennis describes CTOS as an organization that “uses data to create insight”. This means that CTOS aims to create trust, transparency, and provide detailed personal financial information in order to assist in decision making. They are a private company that informs its users about their credit health and attractiveness. CTOS also assist corporate companies make informed decisions about their employees and partners, encouraging transparency and encouraging confidence in one another.

So, when it comes to getting a home loan, your credit score could either make or break your home loan potential. The bank would look at your credit score to make a decision. Banks are interested in your credit score because it shows how reliable you are as a consumer. The CTOS report also helps banks identify frauds and to eliminate any potential bad borrowers because it contains information about a person’s credit history, legal cases and directorships.  As a consumer, knowing your credit score enables you to monitor your credit health and improve its score by making wise financial decisions.

You can check your credit score by signing up on CTOS by clicking here. You will be required to provide a copy of your NRIC and some personal details. Upon activation, one free copy of the report will be sent to you. However, in order to receive notifications and a more detailed report, you will be required to pay a small fee. As CTOS is under the CRA Act 2010, they will require your consent before sharing your information to a third party.

Stand a good chance at getting your home loan approved by having a good credit score. You can improve your credit score by knowing its current condition and making wise decisions that leaves a positive impact on your score. Credit Reporting Agencies such as CTOS aims to facilitate this process.

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