Bank Negara Malaysia has announced the introduction of a standardised housing loan and home financing agreement for retail borrowers. This initiative seeks to enhance the quality-of-service delivery, promote consumer understanding and comparability of key terms and conditions, and simplify language in such agreements, including customers’ and financiers’ responsibilities and obligations.
This move is part of the Central Bank’s commitment in promoting fair consumer outcomes in the financial industry in accordance with the Policy Document of Fair Treatment of Financial Consumers, as well as other relevant policy documents, guidelines, and circulars issued by the central bank.
As part of the implementation of the standardised housing loan and financing agreement, financial institutions are required to cease imposing any fee, whether directly or indirectly, on housing loan and home financing documents to lawyers, with effect from February 1, 2023.
 “Standardising the housing loan and home financing agreement is a significant step forward in enhancing customer protection in the financial industry, and AIBIM members fully supported this initiative,” said Encik Mohd Muazzam Mohamed, President of the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM).
