JOHN is interested to buy a RM1.2mil property. Together with rebates and all, the real value of the house is RM1mil and John is aware of that.
John goes to the bank, and based on the sales and purchase agreement, applies for a bank loan of RM1.08mil, or 90%.
But the bank gives him an 80% loan amounting to RM960,000. John walks away from the purchase.
The developer blames “stringent financing rules” for the aborted purchase. To the bank, it has approved the loan.
Media Title: The Star
Date: 2 Nov, 2019