Housing financing and affordability in Malaysia is an essential element in the process of purchasing a house for individuals who want to meet their own house. This study was conducted to identify the purchaser affordability level of Bumiputra against housing financing facility provided by financial institutions. Therefore, this paper presents the analysis of affordability level of Bumiputra against housing financing facility provided by financial institutions. The findings show that a Bumiputra with middle income can afford a house below RM250, 000 with monthly installments below RM1, 000.

The decision to purchase a house is very important and is a big step in one’s life. It requires a high financial commitment and the benefits of buying a house is a great long-term investment. There are many elements needs to be considered in purchasing a house, including income, household expenditure, the date of purchase, advances, loans and repayment period and amount of monthly installments. However, if we look, today, to have a low-priced house needs a high struggle. The high price of residential properties has been causing difficulties to Bumiputra to buy and own their own house, especially in Johor Bahru.