Al Rajhi Bank offers Malaysia My Second Home (MM2H) - a scheme through which an expat can get a home financing in Malaysia. The programme is promoted by the Malaysian government. Read below to know more about the features and characteristics of the home loan scheme:
Features and Benefits of Al Rajhi Housing Loan for Foreigners
- The Malaysia My Second Home (MM2H) programme is open to the nationals of all countries which are recognised by Malaysia.
- This home financing scheme is promoted by the Malaysian government.
- Expats from any country regardless of their age, religion, gender, and race can obtain this home loan facility.
- You can also bring your spouses, and children below 21 years of age in the country as dependents.
- The home financing is given with competitive profit rates in two categories: Fixed Rates (Residential) and Structured Rates (Residential).
- The margin of financing provided is up to 80%.
- Flexible tenures of up to 35 years are provided through the structured rate format while tenures of up to 25 years can be accessed through the fixed rate format.
- A comprehensive takaful cover is provided with the Malaysia My Second Home programme.
- Rebate (Ibra) will be given by the bank on early settlement of the financing amount.
Al Rajhi Home Loan for Foreigners Interest/Profit Rate
The interest/profit rate charged are derived by the bank’s Base Rate (BR). The BR for Al Rajhi Bank in Malaysia since 2 February 2018 is 4.35% p.a. whereas the ceiling rate is capped at 10% p.a. The profit rate is calculated by using the formula: BR + 0.60% p.a.
Thus, Effective Profit Rate = 4.95% p.a. (applicable to structured/variable rate category only)
Al Rajhi Housing Loan for Foreigners Fees and Charges
Further fees and charges are involved when you apply for the MM2H home loan scheme as a foreigner:
|Al Rajhi Home Loan for Foreigners (MM2H)||Fees and Charges|
|Disbursement Fee||As per the bank’s discretion (includes registration fee, land search, and bankruptcy search charges)|
|Stamp Duty Charges||As per the Stamp Duty Act 1949 (Revised in 1989)|
|Bursa Transaction Fee||RM15.90 per RM1 million|
|Early Termination Fee||1% p.a. on the installment amount in arrears or as indicated by the Shariah Board (whichever is lower)|
|Legal Fees||As charged by the legal firm|
|Any other fees such as minimum interest charge, cheque charge, etc. (if applicable)||As per the bank’s discretion|
*(The fees and charges are applicable as on Dec 2016)
Al Rajhi Home Loan Eligibility for Foreigners
- Nationality criterion: Citizen of any country recognised by Malaysia
- You require a Social Visit Pass valid for 10 years
Documents Required for Al Rajhi Home Loan for Foreigners
- A valid identity proof or passport
- Identity proofs of the spouse and dependents (if applicable)
- Proof of income ( as requested by the bank)
- Documents related to the Social Visit Pass
- Latest salary slips of 3 months
- Latest bank statements of 3 months
- Sales and Purchase Agreement
- Copy of Title
- Business Registration Form or Form D (if applicable)
- Form 9 or Form 24 or Form 49 or M & A (whichever is applicable)
- Company’s latest bank statements for 6 months (for self-employed applicants)
- Any other document asked by the bank
How to apply for Al Rajhi Home Loan As a Foreigner
The home loan application process takes place in the following ways:
- Offline application: You can apply for the Malaysia My Second Home programme by visiting the nearest branch of Al Rajhi Bank. After getting the application form, you will require to fill in all the necessary details before submitting the application form for further approval.
- Online application: The bank also provides the facility to fill the application form through its official website. You need to download the form from the website and fill it in with required details. The form along with al valid documents later need to be submitted at any of the bank’s outlets.
Al Rajhi Home Loan Contact Number
If you want any information about the application form, application status, or want to obtain any other customer service, you can get in touch with the bank representatives at the customer care hotline: 1300 82 6000.
Q. Is taking a takaful cover mandatory for the MM2H scheme?
A. Having the Mortgage Reducing Term Takaful (MRTT) is strongly recommended by the Al Rajhi Bank. However, acquiring a Houseowner Takaful/Insurance is mandatory.
Q. From where can I obtain a takaful cover?
A. You can apply for a takaful coverage from the bank’s takaful providing service firms such as Syarikat Takaful Malaysia Berhad (STMB) and Great Eastern Berhad (GE).
Q. Can I get home financing under MM2H programme if I am a citizen of Canada?
A. Yes, you can get a home financing to purchase a residential property in Malaysia under this scheme with valid proof of identification and employment details.
Q. For my home financing related query, where can I sent an email to the bank?
A. For any doubt related to the product, you can write to the bank at [email protected]
Q. How much rebate will I get on early settlement of the payment?
A. You are entitled for a rebate or Ibra for early settlement of the payment and the rebate will be granted as per the BNM guidelines and the bank’s internal Ibra policy.
Q. Is there any lock-in period involved for Malaysia My Second Home programme?
A. There is no lock-in period imposed by the Al Rajhi Bank. However, the bank shall have the right to claim the actual entry costs if you settle your financing instalments before the period of 5 years.
Al Rajhi’s MM2H programme is based on Commodity Murabahah concept, which means the payment of Bank Sale Price is made on a deferred basis. With competitive profit rates and a comprehensive takaful coverage, this plan makes up for a good home financing option for foreigners who like to visit Malaysia often.