Rehda: M40 Struggle with Home Ownership as Bank Loan Rejections Rise for RM300k

KUALA LUMPUR, Sept 21 — Middle-income earners (M40) are finding it increasingly difficult to own homes as bank loan rejections remain high, particularly for units priced between RM300,001 and RM500,000, a range popular among first-time buyers.

According to the Real Estate and Housing Developers’ Association (Rehda) survey for the first half of 2025, 71 per cent of developers reported financing hurdles faced by purchasers, with rejection rates estimated between 16 and 30 per cent in this segment.

Home Ownership

Rehda president Datuk Ho Hon Sang said the problem is most severe for properties in the RM300,000–RM400,000 bracket, still considered affordable housing.

Former president Datuk NK Tong noted the irony: households targeted by affordable housing policies often cannot secure loans due to income limitations, despite being the intended beneficiaries.

Business News