In Malaysia, if you already have two home loans you are still paying, the bank can lend you at most 70% of the price on the third. That is Bank Negara Malaysia's rule for home financing. Most banks count the home loans you are still paying, not how many houses you own. So the same person can get 70% from one bank and 90% from another: the only difference is how many loans each bank counted.
One loan miscounted, RM100,000 more down payment. On a RM500,000 home, a 90% loan needs RM50,000 down; a 70% loan needs RM150,000. The RM100,000 gap is roughly two new Myvis.
The record banks check is not all your debt. Banks usually check CCRIS, Bank Negara's database of borrowers' loans. The only government agency that reports into it is PTPTN. A civil servant's LPPSA government home loan is not reported, and neither are most cooperative loans.
Which bank is right? Possibly both. Bank Negara sets the cap; it never told banks to look only at CCRIS. The bank that sees more simply counted a loan the other one missed.
Both houses are residential. Why does one bank call this the third loan?
Last month an agent took a client to apply for a loan. The client owns two houses, both residential.
One bank said: this is your third loan, 70% at most. Another bank pulled his loan record, saw only one home loan, and approved 90%.
The agent's first thought: "Maybe one house is not residential, so it doesn't count?" No. Wrong direction.
You think the bank counts houses. It counts home loans you are still paying
Bank Negara's statement of 3 November 2010 sets the rule: at most 70% on the third house financing facility taken out by a borrower; the first and second are left to each bank's own policy, usually up to 90%. The statement does not say how to count; most banks count the home loans you have not finished paying.
So most banks are not counting your titles. It is counting how many home loans you have not finished paying.
| Your situation | What you think | How the bank actually counts |
|---|---|---|
| Both houses fully paid | Third house, so only 70% | 0 loans running; this is your first |
| One bought with cash, one on a loan | Third house, so only 70% | 1 loan running; this is your second |
| One on your loan, one joint with your brother | My brother pays the joint one, so it is not mine | 2 loans; most banks count the joint one as yours too |
| Both on loans | Only 70% | 2 loans; this is your third, 70% at most |
Same person, why do two banks get different answers?
Because the first bank saw more than the second. The five most common reasons:
1. A loan that is not in CCRIS at all. CCRIS is Bank Negara's loan database. Banks, Islamic banks and development financial institutions report into it, plus a few card, car-finance and leasing companies and government agencies; on Bank Negara's list the only government agency is PTPTN. A civil servant's LPPSA home loan is not reported, and neither are most cooperative loans (Bank Rakyat, a cooperative bank, is on the list). A bank that looks only at CCRIS treats them as if they do not exist.
2. The loan is in CCRIS but not as a "home loan". Every facility on the report has a type; a home loan reads "Housing Loans/Financing". If you refinanced a house to take cash out, some banks book it as another type, such as a term loan or personal financing. A bank that reads the type will not count it; a bank that reads the collateral, code 10 (property), will.
3. Joint loans. A home loan you share with a spouse or relative appears on each borrower's CCRIS. Most banks count it as one of your home loans and in your DSR, whoever pays the instalment; banks differ.
4. Approved but undisbursed loans, or pending applications. Bank Negara's CCRIS FAQ says the report shows pending and approved applications from the last 12 months. Apply at three banks at once and all three can see it.
5. The bank's own rule is stricter than Bank Negara's. Bank Negara only sets "at most 70%". A bank may be more cautious, for example counting what you declared on the form, deductions on your payslip, or old loans in its own system. Bank Negara itself says CCRIS is only one of many sources banks use; they also use what you provide in your application documents and reports from credit reporting agencies such as CTOS.
The bank missed a loan. Did you just win?
Not yet. The 90% was approved on the basis that you have one loan. If the form asked you to declare existing loans and you left one out, that is your false declaration, not the bank's mistake.
The practical risk: the bank checks again before the formal offer. If it finds the loan then, the margin can drop to 70%, and by then you have usually signed the sale and purchase agreement and paid the 10% deposit.
The safe move is to know how many loans the bank will count before you pay the booking fee.
Three things to do before paying the booking fee
- Get your own CCRIS report first. Count the "Housing Loans/Financing" lines, which ones are joint, and any pending applications. How to get and read it: our CCRIS self-check guide.
- List every loan outside CCRIS. LPPSA, cooperatives, foreign banks, cash-out refinancing: who lent it, how much is left, and whether it is joint.
- Ask the bank straight: "How many loans are you counting, and which ones?" If two banks give different answers on the same papers, find the loan that makes the difference. If it is actually settled, show the redemption letter and ask for a re-assessment.
Already judged as your third loan. What now?
- Settle the smallest loan. Once CCRIS shows it settled, your next loan is the second again. Records update by the 10th of the following month at the latest; to be safe, allow a month or two after settling before applying.
- Buy in the name of a spouse with no home loan. Only if their own income is enough: all monthly loan repayments must stay within the share of income the bank allows, the DSR (see how DSR works). The moment the bank asks you to join the loan, your two loans come with you.
- Accept 70% and plan the cash. On a RM500,000 home, have RM150,000 for the down payment plus stamp duty and legal fees. Full workings: third property and the 70% loan.
As for "switch one to a commercial title and it won't count": Bank Negara's measure targets residential financing, so a loan for a shop or office is not a home loan. But a serviced apartment on commercial land is lived in, and many banks treat it as a home loan; banks differ. If both your properties are residential, that route never existed.
What buyers ask
Does the 70% cap count my houses or my home loans?
Bank Negara's 2010 statement applies it to "the third house financing facility taken out by a borrower" and does not say how to count. Most banks count outstanding home loans, so houses bought with cash or fully paid off usually do not count.
Why does one bank say this is my third loan and another my second?
Most often one loan is not in CCRIS (such as an LPPSA government home loan or most cooperative loans), or it is in CCRIS under another type (such as cash-out refinancing booked as a different facility). The bank that sees more counted a loan the other one missed.
Does an LPPSA loan show up in CCRIS?
Bank Negara's list of CCRIS reporting institutions names only PTPTN among government agencies; LPPSA is not on it. A bank can still see the loan from your payslip deduction or your application form. More in our LPPSA 2026 guide.
My co-borrower pays the joint loan every month. Does it still count as mine?
At most banks, yes. A joint loan appears on every borrower's CCRIS, and most banks count it as yours and in your DSR; banks differ.
If I apply at several banks at once, can they see it?
Yes. The CCRIS report shows pending and approved applications from the last 12 months. Ask the banks whose offers you turn down to cancel them formally.
70% cap: Bank Negara Malaysia statement of 3 November 2010, "Measures in promoting a stable and sustainable property market and sound financial and debt management of households" (source). CCRIS reporting institutions and 12-month record: Bank Negara CCRIS page. Pending and approved applications, update by the 10th: Bank Negara CCRIS FAQ, questions 27 and 38. Facility types and collateral codes: Bank Negara's Explanatory Notes for Credit Report sample. RM100,000 = RM500,000 × (90% − 70%); a new Myvi in 2026 costs about RM46,500 to RM59,900. CCRIS as one of many sources, alongside application documents and credit reporting agencies: Bank Negara CCRIS page and FAQ questions 35 and 37. Counting outstanding loans and how joint loans count are most banks' practice, not Bank Negara's wording, and vary by bank. Checked 10 November 2026. General information, not financial advice.
WhatsApp us both offer letters and your CCRIS report (hide your IC number). We find the loan that makes the difference and tell you how much cash you really need before you pay the booking fee.