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What are the rights and duties of a borrower during the course of a housing loan?

Both borrower and financial institution have certain rights and duties during the course of the loan.

Some of the more important ones include:

Rights of Borrower

  • Right to have access to all information that would affect your borrowing decision

  • Right to be treated professionally, courteously and without prejudice

  • Right to be consulted on changes to the terms and conditions of your loan

  • Right to have accurate information on a regular basis on your loan account

  • Right to enforce legal action in the event of a breach of contract

Duties of Borrower

  • Duty to read and understand all terms and conditions of the loan

  • Duty to observe the terms and conditions of the loan at all times

  • Duty to enquire and get clarification on all aspects of the loan to their satisfaction

  • Duty to make prompt payment on the fees, charges, interest and instalment of the loan


A Loan Officer can provide invaluable assistance, and clarify issues which you are unsure. Take the time to discuss your housing loan questions with a loan officer at length so that you can choose a loan facility that best suits your needs.

Next: Rights and Duties of Financial Institutions

Back to Housing Loan's Contents


Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


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Knowledge Base ID :   1278
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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