A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Are you eligible for a Home Loan in Malaysia?

    A home loan or home financing is a type of loan that you acquire from a bank or financing institute to purchase a house. In Malaysia, various banks offer different types of home loan schemes to you giving a wide scope of choice.

    There are many factors that may come in your way while obtaining a home loan. Therefore, before applying for any home financing scheme, you should check the eligibility criteria for it, so that you do not have to end up being disappointed in case the bank rejects your application.

    Home Loan Eligibility

    How to Calculate Home Loan Eligibility

    There are different ways to calculate your eligibility for a home loan scheme. You can directly contact the bank representatives and tell them about your desired scheme. The representatives then will let you know whether you are qualified for that scheme or not.

    Another way to know your eligibility for a home loan scheme is to calculate it through the housing loan eligibility calculators that are often provided on a bank’s official website. You need to key in the details related to your income, interest rate charged by the bank, and applicable loan tenure to get the estimation.

    Home Loan Eligibility Criteria

    General eligibility criteria for acquiring a home loan in Malaysia are as follow:

    • You need to be a Malaysian citizen or permanent resident of Malaysia to apply for a home loan scheme.
    • A foreign citizen can also apply for a home loan with valid proofs of identification and income as per the bank’s discretion.
    • You must be at least 18 years of age to apply for home financing schemes.
    • Your maximum age should not exceed 75 years at the time of the maturity of the home loan scheme.
    • Income criteria should be as requested by the bank and depending on the scheme.
    • Having good credit history is also necessary for quicker approval.

    Documents Required for Applying for Home Loan

    You need to provide the following documents while applying for a home loan facility in Malaysia:

    Documents required for a salaried employee and self-employed applicant:

    • Valid copy NRIC or Malaysian Identity Card aka MyKad (both front and back sides)
    • Booking receipt for the property (1 draft)
    • Vendor Sale and Purchase Agreement or title copy or new Sale and Purchase Agreement
    • A copy of the land title
    • Latest salary slips for 3 months (for a basic salary earner)
    • Latest salary slips for 6 months (for basic salary plus commission earner)
    • Latest bank statements for 3-6 months (for self-employed applicant)
    • Latest EA Form or employment letter from the employee
    • Latest Form B or BE with an acknowledged payment receipt (for income tax details)
    • Latest EPF statement or KWSP statement
    • Education certificates (if requested and as applicable)
    • Fixed deposit statement (for credit assessment) (if requested)
    • Any other document as requested by the bank or finance institute
    • Fixed deposit statement (for credit assessment) (if requested) (for self-employed applicant)

    As per the company status (Sole proprietor and partnership or Sdn Bhd company):

    • Form 24 and 49
    • Memorandum or article
    • Latest account of profit and loss (as requested)
    • Company’s profile
    • Business registration certificate
    • Latest 6 months’ bank statements of the company
    • Latest pay slips for 3 months (if the applicant is the director of the company)
    • Latest personal bank statements for 3 months (to tally the pay slips)
    • Latest EA Form or employment letter (if applicable)
    • Latest EPF statement or KWSP statement
    • Latest Form B or BE with a payment receipt acknowledgment (if applicable; for income tax details)
    • Form A and Form D
    • Any other document as requested by the bank or finance institute

    Documents required for a joint applicant and a guarantor:

    • A guarantor or joint applicant needs to provide a similar set of documents which are mandatory for a salaried or self-employed applicant as per his/her employment status.  

    Documents required for Malaysian working abroad (salaried employee and self-employed applicant)

    • Copy of NRIC or Malaysian Identity Card
    • Working permit (if applicable)
    • Booking receipt for the property (1 copy)
    • Vendor Sale and Purchase Agreement or title copy or new Sale and Purchase Agreement
    • A copy of the land title
    • Latest salary slips for 3 months (for a basic salary earner)
    • Latest salary slips for 6 months (for basic salary plus commission earner)
    • Bank statements for last 3-6 months (as requested)
    • Latest EA Form or employment letter from the employee
    • Latest Form B or BE with an acknowledged payment receipt or income tax declaration form with payment receipt (for income tax details)
    • Latest EPF statement or KWSP statement or CPF statement
    • Education certificates (if requested and as applicable)
    • Fixed deposit statement (for credit assessment) (if requested)
    • Business registration certificate (if applicable)
    • Credit Bureau Singapore Report (applicable for the candidates working in Singapore)
    • Latest deposit statements; for example, fixed deposit, ASB or bonds (if any)
    • Latest profit and loss statements (if applicable)
    • Any other document as requested by the bank or finance institute

    Documents required for a foreigner applicant working in Malaysia (salaried and self-employed applicant)

    • A copy of his/her identity card or passport
    • Working Permit (if any) or PR card with validity of minimum 6 months and above
    • Property booking receipt
    • A copy of the Sales and Purchase Agreement or title
    • Latest salary slips for minimum 3 months
    • Latest bank statements for minimum 3 months
    • Employment or validation letter by the employer or the latest KWSP statement
    • Latest income tax declaration form with payment acknowledgement receipt
    • Deposit statement such as fixed deposit, ASB or other bonds (if applicable)
    • Business registration certificate (to show ownership of the company) (for self-employed applicant)
    • Latest valid profit and loss statement (for self-employed applicant)
    • Memorandum of Article and Company Profile (as requested)
    • Form 24, 49 (If applicable)

    Housing Loan Eligibility Criteria for Some Top Banks

    Affin Bank Home Loan

    • Both Malaysian and non-Malaysian citizens can apply.
    • The customer should be maximum 65/75 (as described for the scheme) years old at the time of the maturity of the loan.
    • For My First Home Scheme, you should be maximum 40 years old.
    • For Housing Guarantee Scheme by SJKP, you should earn at least RM1,000 per month through a fixed or non-fixed income.
    • The property value must be within the range of price decided by the bank to obtain the home loan. For different home loan schemes of the banks, the property values range from RM35,000 and above.

    Affin Bank Islamic Home Financing-i

    • Both Malaysian and non-Malaysian citizens can apply depending on the scheme.
    • You must be minimum 18 years old when applying for a home loan scheme and your age should not exceed 65/75 years at the time of maturity of the loan scheme.
    • Both Muslims and non-Muslim applicants can obtain the loan.

    HSBC Home Loan

    • You must be between 18 to 65 years of age to apply for a home loan scheme with HSBC.

    HSBC Amanah Home Loan

    • Residents and non-Residents of Malaysia can apply for the home loan scheme.
    • Your minimum age should be 18 years and maximum age needs to be 65 years at the end of the financing tenure.

    Alliance Bank Home Loan

    • You can apply for the home loan facility is you are between 21 and 70 years of age.
    • Residents and non-Residents of Malaysia can apply for the home loan scheme.

    Alliance Islamic Bank Home Loan

    • You can apply for the home loan if you are between 21 and 70 years of age.
    • Residents of Malaysia and foreigners can apply for the home loan scheme.

    AmBank Home Loan

    • You can apply for the home loan if you are between 21 and 70 years of age at the time of maturity of the loan.

    AmIslamic Home Loan

    • You can apply for the home loan if you are between 21 and 70 years of age at the end of the financing tenure.

    Bank Islam Home Loan

    • Malaysian citizens can apply for the home loan.
    • Minimum age should be 18 years and maximum age of the applicant needs to be 70 years.
    • Income criterion:
      • Minimum RM1,000 per month (for SKJP)
      • Not more than RM5,000 per month (for My First Home Scheme)
    • You should not have any bankruptcy record or legal offences charged against you.

    Bank Muamalat Home Loan

    • You need to be a Malaysian citizen.
    • Your age should be minimum 18 years while applying and maximum 70 years at the completion of the tenure.

    Factors Affecting Home Loan Eligibility

    Age: It is one of the most important criteria of eligibility that you need to consider while applying for a home loan. A person less than 18 years old (or as per the lowest limit allowed by the bank) or above the set maximum limit (which is 70 to 75 years for most of the schemes), will not be eligible to obtain a loan from the bank.

    Monthly expenditure: Your monthly expenditure are also crucial while applying for a financing facility. It also plays an important part in deciding the credit score. Thus, keeping your monthly outflows regular and managing healthy savings is essential.

    Existing loans: If you have any existing loans, pay off the instalments on time and on regular basis. Uneven flow of the loan payments can be detrimental to your credit score eligibility.

    Education and occupation: The bank may also consider your education qualification before granting you a huge sum. Also, your profession often decides the longevity of your career hence, maintaining a good career graph is equally vital.

    Joint applicants or guarantors: The bank will also consider the eligibility of your guarantor or co-applicant before giving you the home financing. As a joint applicant will share the burden of your installments, a guarantor is responsible for paying off your loan in case of your incapacity.

    Tips to Increase Your Housing Loan Eligibility

    Given below are the pointers that can help you to increase your home loan eligibility:

    • Improve your credit score by maintaining a healthy balance and keeping the payment cycle regular.
    • Set off all the previously existing loans.
    • If you are applying with a joint applicant, make sure that he/she has a healthy banking record and credit assessment.
    • Choose a guarantor who is financially capable and has a good credit history while applying for a home loan.

    FAQs

    Q. Can I get a home loan if I am above 18 years old but currently unemployed?

    A. As an 18-year old, you are eligible for a home loan but depending on the bank you are applying with, you might need to follow a designated income criteria too. Please check with your bank if you can apply as a joint-applicant in case of no-employment.

    Q. Can I have more than two joint-applicants?

    A. There are banks that allow more than two applicants for a home financing.

    Q. Am I eligible to get a home financing if I am 65 years old?

    A. As per most of the banks’ guidelines, your maximum age should be 75 years at the time of completion of your loan tenure. Thus, if you can apply for financing tenure less than 5 years, you can get a home financing scheme. However, check with the bank or read through their terms and conditions before applying.

    Q. I am an artist and I do not have a steady income flow, can I get a home loan?

    A. If you have a healthy credit score so far, you can apply to a bank for a home financing scheme as per your requirements. You can opt for a short-term loan scheme with a decent down payment while getting a home financing.

    Q. Am I eligible for a home loan scheme if I am not a Malaysian citizen?

    A. Yes, there are many schemes under which foreigners can apply for a home loan scheme in Malaysia.

    Banks may reject your home loan/financing application unless you meet the eligibility criteria. Make sure you have all the valid documents in place to for a quick loan approval process.  

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.