Exploring Customer Perceptions on Housing Loan: Evidence from the Malaysian Urban Community

The purpose of this study is to examine the factors that influence the customer decision on demand of housing loan. This research is conducted by distributing questionnaires to respondents from 3 urban areas which are Kuala Lumpur, Penang and Johor. Data was used to analyse reliability test, descriptive analysis, Pearson Correlation and so on. At the end, housing price, interest rate, taxation benefits and income level can be concluded to have a positive relationship with housing loan demand at the point where the increase in housing price or income level will increase the housing loan demand. Interest rate and taxation benefits are not consistent with the previous research conducted by other researchers. This may due to Malaysian currency weaken and economy slow down, therefore, people intend to own a property instead of holding cash, since the property will appreciate in value while currency depreciate in value. Result from this research only represents the demand of housing loans in Malaysia, but not the result of the global market.