The factors influence borrowers in choosing housing loan / Jeslyn Putri Othman and Noryanto Asroun Mohamad Asroun

A competitive environment is created among conventional and Islamic banking system in Malaysia. Recently, many studies have investigated the variations in the performance of Islamic and conventional banking in various regions of the world (Salman, & Nawaz, 2018). Apart from that, lack of studies aims to know the choice of housing loan chosen by Malaysian and the characteristics of the loans Thus, this research aims to determine the main factors that influence the borrowers in choosing housing loan. The respondents are adults over 20 years old who live or work in Kuantan, Pahang and have gone through a housing loan process. The study approach involves distributing out a survey questionnaire to the target respondents by face to face and online. Mean score analysis is used to analyse the data. The result shows fair terms and conditions, terms and condition well explained, and monthly repayment amounts is not burdensome are main factors influencing borrowers in choosing housing loan. Therefore, this research give benefit to individual especially for the first-time home buyer who can aim to apply for the most suitable housing loan.