Home loan rejected: causes and fixes
Quick answer: Home loans are usually rejected because of a high debt service ratio (DSR), late payments in CCRIS, legal or blacklist records in CTOS, or income that can't be proven. Get your free report via Bank Negara's eCCRIS, cut small debts, and build 6–12 months of clean payments before reapplying.
Common reasons
- High DSR — monthly debts (car, personal, cards, PTPTN, BNPL) vs net salary.
- Late payments in CCRIS.
- CTOS records — court actions, telco arrears.
- Too many applications in a short time.
- Irregular or undocumented income.
- Low valuation of the home.
How to fix
- Get your free eCCRIS report and correct errors.
- Pay off small debts and cards to lower DSR.
- Avoid new car/personal loans before buying.
- Consider a joint applicant.
- Heavy debt? Get free advice from AKPK.
- Self-employed? See SJKP.
Frequently asked questions
Why was my home loan rejected?
Common reasons are a high DSR, late payments in CCRIS, negative CTOS records, income that's hard to prove, or a valuation below the purchase price.
What DSR do banks accept for home loans?
It varies. Many banks accept around 60–70% depending on income level. The lower your DSR, the better your chances.
How long should I wait after a rejection?
There's no official period, but 6–12 months of clean payments and reduced debt usually improves the next application.