It explained that it was crucial for these buyers to also recognise the need to make sound decisions of their own affordability based on their financial circumstances.
'The business of our member banks is in the main lending or extending credit. There is no intention whatsoever to make lending more difficult, particularly for first time home buyers,' ABM said in a statement on Monday.
ABM had issued the statement to clarify a recent report on banks being 'overly cautious' on mortgage loans for first-time home buyers.
The association also pointed out that for first time home buyers, the bank would usually finance up to 90% of the price of the property.
'They may also want to consider applying for government schemes such as '˜Skim Rumah Pertamaku' for assistance in their property purchase,' it said.
ABM added commercial banks had offered special housing loan packages to suit the needs of first time home buyers.
It encouraged them to shop around to find a suitable financing package.
'Additionally, applications for such mortgage loans are decided on a case to case basis and there is no blanket approval system,' it said.
ABM also encouraged consumers to fully and accurately disclose all material information with regard to their financial position when applying for a home loan.
'In conducting affordability assessments, commercial banks take into account the applicant's income after statutory deductions, expenditure on necessities and all existing debt obligations from banks and non-bank lenders.
'For self-employed applicants, banks will also take into account their proof of savings and regular income sources.
'First time home buyers should work with their financiers when making the suitability and affordability assessments for any facility applied for to pave the way for more robust financial management on the part of the buyers. Commercial banks are committed to playing their role in this process,' it said.
ABM said the association and its council banks would be pleased to engage with all State Governments with regard to matters related to home ownership in the state.
