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