Looking for the most suitable home loan?
Almost every bank in Malaysia offers housing loans at varying rates and terms. There is no definite answer, as to which one is the best because it all largely depends on the customer’s needs and capacities.
If you plan on applying for a home loan, the first thing you need to do is make a serious assessment of your current financial situation and a concrete plan that includes the property you wish to acquire, as well as the interest rate and loan duration that works best for you.
Other things to remember:
- Most banks lend up to 90% of the property asking price or valuation
- Some home loans only apply to uncompleted properties
- The best loan will also largely depend on whether you are first-time home buyer or someone looking to re-mortgage
- Many Malaysian banks offer flexi-loans
- Loan approvals may be given depending on your minimum income and credit score
Once you are ready to shop for the most suitable housing loan, remember that the lowest interest rate or the fastest application processing period does not always mean the best. You may have to make a choice between taking a loan with a fixed interest rate or a variable interest rate. Some home loans incur fixed interest for the first few years (lock-in period) before shifting to variable or floating rates. To get started in your search for the best loan to finance your dream home, check out the following housing loan offers:
AIA Tiered Home Loan
The Tiered Home Loan package by AIA is an example of a home loan with a fixed interest of 4.25% within a lock-in period. For the first two years, the rate on your mortgage would not fluctuate based on the base lending rates. Foreigners who are participants of the MM2H (Malaysia My Second Home Program) are eligible for this loan.
Citibank FlexiHome Loan
Flexible home loans such as those offered by Citibank allow borrowers to pay an extra sum on top of the designated monthly mortgage, whenever possible, as a way to reduce minimum and costs from interest. Eligible applicants can borrow up to RM100,00 with Citibank’s FlexiHome Loan, which can be payable over a period of 35 years. You would have to have an annual income of at least RM24,000 to be qualified.
Maybank Home Financing
If you would like a housing loan that allows you to pay a fixed amount every time you make a repayment, apply for Maybank’s Home Financing programme. Maybank Home Financing is shariah-compliant, which means that it adheres to the principles of Islamic banking. Islamic loans are offered by several other Malaysian banks.
AmBank Home Link
Loans such as Ambank’s Home Link come with flexible terms that allow borrowers to connect their loan account with a current bank account, as a way to shorten the loan period and save on loan interest rates. You can borrow up to RM800,000 at an interest rate of as low as 4.20%. Like most home loans in Malaysia, both citizens and non-citizens can apply for the Home Link program.
If you would like to see more housing loan offers available, you can try using a comparison tool and be able to view more loan offers from different Malaysian banks.
Note: This is a guest post by CompareHero.my, a Malaysia’s financial comparison portal which helps consumer in finding the right financial products at the right price.