When taking out a bank loan, you can take advantage of three main types of financing if you are buying a home in Malaysia. Loans are featured as home loans, first home scheme financing, and a special housing loan scheme.
Just as with the other loans, a home loan can be secured based on several criteria. These types of loans are offered as fixed or variable rate financing. They can be set up for repayment for a period of 35 years or end by the time the borrower is 70, whichever is sooner. No restrictions are given on the loan amount. An applicant needs to be at least 18 years old to apply for the loan.
The Criteria Used for Granting Loans
If the buyer is a first-home purchaser, again, the loan can be set up for fixed or variable rate financing. Repayment is scheduled for 35 years or by the time the applicant is 65 years old, whichever is sooner. The property value for this type of loan should be between RM100,000 and RM500,000. If a joint application is made, the income should not exceed RM10 ,000 per month. For a single application, the gross income cannot surpass RM5,000 per month.
Not hard to get bank loans in Malaysia can also be obtained through special housing loans. Again, this financing is featured in a fixed or variable rate package with repayment the same as it is for first-time buyers. Financing is available up to RM250,000 within Peninsular, Malaysia or RM300,000 in Eastern Malaysia. An applicant can only own one house to secure the loan.
Besides home loans, you can also obtain overseas property financing or finance a refurbishment or renovation. In addition, loans are provided for education. Whatever you save for university costs, an education loan can be used to cover twice the amount. Whether you need the loan yourself or are using it for your child’s education, you will receive two times more money. With this loan, you can fulfil your loan needs as well as any career requirements.
Banks make it possible for people to realise their dreams whether they are seeking higher education or are buying dream properties. When you form a good relationship with a bank, you can better control your finances. By having this type of latitude, you can also synchronise all your banking activities. Whether you need to save for a holiday or wish to invest for retirement, it pays, literally, to establish a good relationship with your local bank.
If you have not yet consulted with a banker about obtaining a loan for a home or your education, set up an appointment for a consultation today. You can turn any dream into a reality by establishing a banking relationship.