Charts below shows total balance of housing loan lent out by Commercial & Islamic bank in Malaysia. The data was taken from the central bank of Malaysia website.
For the last 20 years Malaysia mortgage market has seen phenomenal growth in tandem with a booming property sales. Presuming the numbers reported correctly by Bank Negara, the reported loan amount increased to nearly 10 folds in the span of 2 decade.
From a loan approval perspective, the growth is experiencing a softening period since early 2015. Since the introduction of responsible lending act by Bank Negara, lenders has been tightening their lending rules and dampens the mortgage growth.
We have taken indicator Malaysia Bank Lending Rate reported by tradingeconomics.com to show bank lending rate movement for the past 2 decades as plotted below. Generally, Malaysia bank lending rate was in the in declining period since 1998 and continue to decline till recent past years and only starts to show upward pressure in 2018.