Bank Negara Malaysia has implemented a new loan to value ratio of 70 percent for homeowners buying their third residential property as it seeks to moderate property speculation.

The central bank said in a statement on Wednesday that financing facilities for purchase of the first and second homes will not be not affected.

"The measure aims to support a stable and sustainable property market, and promote the continued affordability of homes for the general public," it said.

The new measure will be implemented with immediate effect, the central bank said.

- Reuters