Now, you can easily fulfill your dream of owning a house in Malaysia with the help of a home loan. There are banks in Malaysia that offer home loans at attractive rates of interest. But, what if you don’t have a good deposit history? Will a bank accept your home loan application with no deposit? Because, usually banks consider your savings before they grant you a heavy amount of sum as home loan. And you should have a stable history of savings and a regularly maintained savings account to support your no deposit home loan application.
Yes, you can still get a home loan with no deposit. Now, what is a home loan with no deposit? It is a kind of home loan that can receive without having enough savings in your deposit. Usually, no deposit home loans can be availed by first time home buyers who have minimal or no savings. There are a number of factors that may help you get a home loan with no deposit or lower deposit. Listed below are the factors:
- Savings History: if you have a good savings history, you might get a home loan with no deposit however, savings history requirement may vary from lender to lender.
- Banking History: A good and a stable banking history may also help you get a home loan with no deposit.
- Strong Employment History: A strong employment history may also help you get a home loan with no deposit. You need to provide proof in support of your employment history.
- A Steady Income: Having a steady income may also help you get a home loan with no deposits. Because, when you have a stable job, your lender would gather confidence on you and think that you would be able to repay your debt on time.
- Good Credit and Banking History: Even if you don’t have a considerable amount of savings in your account, bank may provide you a home loan if it finds your credit history satisfactory. A good credit can help you receive a home loan with no deposit.
- Find a Guarantor: if you have a guarantor to support your home loan application, bank may consider you credit with no deposit. Many banks offer a no deposit home loan if you have a guarantor. Guarantors need to provide a limited guarantee supported by registered mortgage for an agreed amount of credit. Usually parents or family members act as guarantors and help the borrower obtain the credit. However, your parents are not accountable for the full debt. They are liable for only the agreed or guaranteed amount. besides, they are also not accountable for your monthly EMIs payments
Benefits of a Home Loan with no deposit:
Mentioned below are the major benefits of a home loan with no deposit:
- Get up to 95% finance of your property value.
- Enjoy competitive rates of interest.
- It helps you to own a house of your own, providing you greater security and comfort in life.
- You can save a considerable amount of money which you used spend in paying rent.
- Like traditional home loan schemes, you can make additional payments and repay your no deposit home loan before scheduled date.
- You can choose between different interest rates.
- Enjoy flexible Home Loan Repayment tenure, easy processing and fast disbursal.
Disadvantages of a Home Loan with no deposit
Listed below are the major drawbacks of no deposit home loan:
- The lending standards are very strict. Bank will scrutinize your financial history in detail.
- If your income level is not high and don’t have a stable job, you may not be able to receive a no deposit home loan.
- If you don’t have a good credit rating, bank may reject your home loan with no deposit.
So, find the right no deposit home loan for you that best suits your requirements and financial situation, and be the proud owner of your own home.