It was reported that the Bank Negara Malaysia (Central Bank of Malaysia)  is seeking feedback from banks on the possibility of capping the loan-to-value ratio (LVR) for mortgages at 80 per cent to avert the risk of a potential property bubble.

Currently, there is no fixed LVR. Banks usually lend up to 90 per cent of a house value, or even up to 100 per cent in some cases.

Source: The Edge Malaysia  - 03 Sept 2010

 

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