Effectively, 03Nov2010 onward, the 70% MOA for 3rd property onward will take effect after compliance guideline which has been announced by Governor of BNM to all banks and to implement with immediate effect. However, due to information restriction of CCRIS, the practice of banks will be:
(i) In the absence of BNM's detail and proper guidance, majority of the banks interpret the instruction to be imposed on residential properties.
(ii) Due to information which obtained from CCRIS is rather restrictive, previous joint loan application will affect both applicants in future loan applications.
ie. A couple took 2 loans in joint, for 3rd loan, in regardless the loan is solely under 1 person's name or joint, the loan itself will subjected to the cap of 70% MOA.
(iii) Housing loan which fully settled will be removed from the count (CCRIS problem as well). ie. If you do have 10 properties in hand, 9 out of 10 are fully settled and do not appear in CCRIS, 70% MOA capping will not be applied to you as you only have 1 existing active home loan. Banks won't know how many properties you are holding, they just know how many home loans are with you. So, instead of saying "70% MOA for 3rd property onward", it should be better interpreted as "70% MOA for 3rd home loan onward"
The sharing above is reasonable & acceptable as per 20 Nov 2010. Statements above might not be applicable when detail guidance being issued by BNM.
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