Something I learnt about Home Loans today..

Loan approving officers look at several things when they are approving your loan request:

1. The kind of loan you are requesting (unsecured or secured)

2. Debt ratio (whether you are 'high' geared - >50% of your gross income paying off debts, or 'low' geared)

3. Your previous loan payment record (this is where CCRIS and CTOS comes in)

4. Your income record (whether it is consistent)

5. Your demographical background (Age, Sex, previous employment, Education level, etc.)


If you have a debt of 8k and other monthly commitments of 2k and you are making about 2.5k, most probably a loan for a house valued at 200k might not get approval.

But if you earn 5k (lower debt ratio, higher gross income) you should have a fair chance.

If you have been starting-quitting-starting-quitting-starting jobs for the past 2 years, it will trigger a red flag to the lender (bank), and your chance would be lower.

But if you have an FD of 10% of the loan amount (semi-secured), some banks would take that as a sign that you are cash-rich and a worthy borrower.

The approval given is not just because of CTOS or CCRIS, as these are only a factor in approving the loan. Most banks would allow their loan officers to fight your cause, thus they will be looking at the applications on case-by-case issue to gauge as accurate as possible your credit worthiness.

In lending out money, the bank wants to be 100% sure that you would be able to service out your loan throughout the full tenure. They are not as interested in taking back the property what more dragging you all the way to the courts for some NPL from John Doe.

Your responsibility is to provide them the necessary documents and evidence that you are worth their gamble.