Can You Submit Multiple Home Loan Applications in Malaysia (2025 Guide)

Buying a home in Malaysia can be exciting but also confusing especially when it comes to applying for housing loans. Many Malaysians ask: “Can I apply for multiple home loans at the same time?” or “Can I get more than one housing loan for different properties?”

The short answer is yes, but it comes with strict conditions under Bank Negara Malaysia (BNM) rules and the banks’ internal risk assessments. Submitting too many home loan applications can also hurt your credit score or even get you blacklisted by lenders.

This comprehensive 2025 guide explains everything you need to know about applying for multiple housing loans in Malaysia from what’s allowed, the risks involved, how your Loan-to-Value (LTV) ratio works, and the smartest way to manage multiple home loan applications safely.

Can You Submit Multiple Home Loan Applications in Malaysia?

The short answer is yes, you can. There’s no specific law that stops you from submitting more than one housing loan application at the same time. Many buyers do this to compare loan packages, interest rates, and bank offers.

However, submitting too many housing loan applications or applying for several loans for different properties can affect your credit score, loan approval chances, and even your loan-to-value (LTV) ratio.

Bank Negara Malaysia’s Rules for Multiple Home Loans (Updated 2025)

Under the current Bank Negara Malaysia (BNM) guidelines, you’re allowed to have multiple housing loans, but each new loan comes with stricter conditions.

1. Loan-to-Value (LTV) Ratio

• First and second home loans: Banks can offer up to 90% financing of the property price.
• Third and subsequent home loans: Financing is capped at 70% of the property’s market value.

This is commonly referred to as the 70% LTV rule for the third property. It means you must pay 30% down payment from your own pocket.

Example:
If your third property costs RM600,000, you can only borrow RM420,000 from the bank. The remaining RM180,000 must come from your own savings or EPF Account 2 withdrawal.

2. Credit History & CCRIS Record

Every loan application appears in CCRIS, a national database used by all Malaysian banks. If you submit five housing loan applications in one month, all five will show up as “under application.”

When banks see this, they might assume you are overextending yourself or desperate for financing. That can lower your credit rating and reduce your approval odds. A good credit score and a clean CCRIS record are essential if you plan to get multiple housing loans approved.

3. Debt Service Ratio (DSR)

Your DSR measures how much of your monthly income goes toward paying debts (including credit cards, car loans, and other housing loans).

Banks usually accept a DSR of 60–70%, depending on your income bracket. If you apply for multiple home loans, your DSR can quickly exceed the limit, causing banks to reject new applications.

Pro tip: Try to keep your DSR below 65% if you plan to apply for more than one housing loan.

Risks of Submitting Multiple Housing Loan Applications

While there’s nothing illegal about submitting more than one home loan application, doing it excessively can lead to serious consequences:

1. Damaged Credit Record

Each loan application is visible in your CCRIS report. If banks see multiple applications within a short period, it can suggest financial instability and may reduce your creditworthiness.

2. Higher Risk of Loan Rejection

Banks compare your active applications. If they detect you’re applying for multiple home loans simultaneously, they might assume you’re taking on too much debt and reject your application outright.

3. Stricter Loan Terms

Once you already have two existing housing loans, any third housing loan will automatically fall under the 70% LTV rule. This means you’ll need a much bigger down payment, often between RM100,000 and RM200,000, depending on property value.

4. Deposit and Booking Fee Loss

If you apply for multiple properties hoping to “see which one gets approved first,” you may lose booking fees or deposits if you later decide to cancel some purchases.

When Submitting Multiple Home Loan Applications Makes Sense

Submitting more than one home loan application isn’t always bad, it can be beneficial if done strategically. Here’s when it’s acceptable:

• You’re comparing housing loan offers from different banks for the same property.
• You’re looking for the best interest rate or loan tenure before deciding which bank to commit to.
• You’re applying for pre-approval to know how much financing you qualify for before signing a Sale and Purchase Agreement (SPA).

If this is your reason, it’s best to be transparent with the banks, let them know you’re comparing offers, not trying to get multiple loans approved at once.

Tips to Apply for Multiple Home Loans Safely in 2025

To avoid hurting your credit score or being rejected by banks, follow these smart steps before you apply for multiple housing loans:

1. Apply for One Property at a Time

Avoid applying for loans across multiple properties simultaneously. Focus on one unit that you genuinely plan to purchase.

2. Time Your Applications Carefully

If you’re comparing banks, submit your applications within 2–3 weeks so it appears as a single rate-shopping effort rather than multiple risky borrowings.

3. Check Your CCRIS Report Regularly

You can access your CCRIS report online via the eCCRIS portal. Check it regularly to ensure all your applications and repayments are reported accurately.

4. Keep Your Debt Service Ratio Low

Make sure your DSR stays below 70%, a lower DSR gives you higher approval chances even if you submit more than one housing loan application.

5. Get Help from a Mortgage Broker

Mortgage consultants or brokers can compare interest rates from multiple banks on your behalf without you submitting multiple applications yourself. This method is safer for your credit record and increases your chances of approval.

Example: How the 70% LTV Rule Affects You

Let’s say you already have two housing loans and you’re planning to buy a third property worth RM600,000. Under BNM’s guideline, your third home loan will be capped at 70% financing, meaning the bank can only lend you RM420,000, and you must pay RM180,000 as down payment.

This rule ensures borrowers don’t overextend themselves with excessive property loans.

Can You Get Two Housing Loans in Malaysia?

Yes, you can hold two active housing loans at the same time. Many Malaysians own both a home for personal stay and another for investment or rental purposes.

The key requirement is that your income and DSR must support both loans. The bank will assess whether your income is sufficient to cover both repayments plus other commitments.

If you’re a salaried employee earning above RM6,000 per month, getting a second home loan is usually feasible provided your first loan is paid on time and your DSR remains below 70%.

Can You Apply for a Third Housing Loan?

Yes, but with restrictions. For the third home loan, BNM imposes the 70% Loan-to-Value rule, which limits your financing to 70% of the property’s value.

For example:

• Property price: RM800,000
• Maximum loan (70%): RM560,000
• You pay: RM240,000 down payment

This rule applies even if you have excellent credit. The policy is designed to discourage speculative property purchases and ensure borrowers do not over-borrow.

Frequently Asked Questions (FAQ)

1. Can I apply for two housing loans at once?

Yes, you can apply for two home loans at the same time, but approval depends on your DSR, credit score, and existing commitments.

2. Will multiple loan applications affect my credit score?

Yes. Every loan application shows up in CCRIS, and too many active applications may lower your credit score.

3. How many housing loans can I get in Malaysia?

There’s no strict limit, but after your third property, the 70% LTV rule applies making it harder to finance more homes.

4. Is it illegal to apply for multiple home loans?

No, it’s not illegal. But applying for several loans with the intention to mislead banks or hide commitments is considered loan fraud and is punishable under Malaysian law.

5. How long should I wait between loan applications?

Ideally, wait 2–3 months before applying for another home loan if your previous one was just approved. This allows your CCRIS record to stabilise.

 

In Malaysia, you can apply for multiple home loans, but you must understand the Bank Negara Malaysia housing loan limits, the LTV rule, and how CCRIS records work.

Submitting too many housing loan applications at once can hurt your credit score, reduce your approval chances, and force you into stricter financing terms.

The best strategy in 2025 is to apply for one property at a time, compare loan offers carefully, and maintain a healthy debt service ratio. A clean credit record and smart timing will always get you better approval results than applying everywhere at once.

Other Article:

• What's the Minimum Salary for a Home Loan in Malaysia?
• Why You Need to Pay Progressive Payment & Interest Before Receiving the Keys in Malaysia?
• What Are the Current Housing Loan Interest Rates in Malaysia?