Gan Chin  Yee, Teo Siew  Chein, Chong  Yin Ni, 
    Factors Affecting Borrowers’ Choice of Housing Loan Packages,
    The Social Sciences,
    Volume 11,Issue 13,
    2016,
    Pages 3187-3195,
    ISSN 1818-5800,
    sscience.2016.3187.3195,
    (https://makhillpublications.co/view-article.php?doi=sscience.2016.3187.3195)
    Abstract: Shelter is one of the basic human needs and yet bad economy and high interest rates have caused the public to be extremely prudent and hesitant when it comes to acquiring a house. This study investigates factors affecting borrowers’ choice of housing loan packages in Melaka. The researches categorize six factors that affect consumers/borrowers loan choices. These factors encompass those of the loan elements (interest rate, repayment period and monthly payment, loan-to-value ratio) and of bank’s services (bank’s reputations, employees’ services-quality, marketing methods). Data was collected from 210 respondents who are mainly working adults with stable income in Melaka using self-administered questionnaires. The results showed that there are significant relationships between interest rates, employee services-quality and marketing methods when it comes to borrowers’ choice. Among the three, employee services quality is the most influential factor. Besides, education mediates the effect of loan-to-value ratio on the borrowers’ choice of housing loan.
    Keywords: Housing loan;interest rate;repayment period and monthly payments;loan-to-value ratio;banks’ reputation