BNM standardises housing loan and home financing agreement for retail borrowers, says AIBIM

• According to AIBIM, financial institutions are required to stop imposing fees on housing loan and home financing documents to lawyers from Feb 1 this year as part of the standardisation exercise.

KUALA LUMPUR (March 29): Bank Negara Malaysia (BNM) has introduced a standardised housing loan and home financing agreement for retail customers to help consumers understand and compare key terms and conditions in such documents more easily, said the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM).

In a statement on Wednesday (March 29), AIBIM said the initiative also aims to improve quality-of-service delivery and simplify language in such agreements, including the obligations and responsibilities of borrowers and financiers.

"This move reinforces Bank Negara Malaysia's commitment to 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," it said.

According to AIBIM, financial institutions are required to stop imposing fees on housing loan and home financing documents to lawyers from Feb 1 this year as part of the standardisation exercise.

"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 the association's president and Bank Islamic Malaysia Bhd chief executive officer Mohd Muazzam Mohamed.