Owning a home is a commendable achievement and home loans are an excellent way of acquiring a dream home or fulfilling a long term goal of becoming a homeowner sooner. Home loans offered by banks have their own unique competitive edge added in. This could be in the form of faster approvals, flexible repayment options, refinancing options, competitive interest rates or fast approvals. If one is looking to own their property sooner and would like to take out a home loan, the below list provides the top 5 best Home Loan housing loans in Malaysia.
Maybank Maxi Home Loan
This home loan offered by Maybank is a conventional loan with a payment tenure of up to 35 years. This home loan has a variable rate of interest attached to the base rate. The financing margin available with the Maybank Maxi Home loan is up to 90% and the loan also offers an additional 5% for additional costs such as legal fees, evaluation fees etc. This allows the borrower to cover for these costs through the loan instead of coming up with the finances themselves. It is a non-flexible loan and does not allow for deposits of additional cash to reduce the principle but allows for advance payment of instalments. Mortgage reducing term assurance and fire insurance is compulsory to acquire this loan. The borrower needs to earn a minimum annual income of RM 24,000 and has to have attained 25 years of age.
HSBC Home Smart Loan
This flagship home loan is a fully flexible HSBC Home Loan HSBC home loan with a tenure of up to 35 years. It allows for additional repayments that would help in paying off the loan faster. The financing margin available on this loan is up to 90% and has a lock in period of 3 years and 5 years for completed and under construction properties respectively. If the mortgage is paid up completely within the lock in period, there will be an early settlement fee charged. The minimum annual income required to avail this loan is RM 48,000 and the borrower must have attained 21 years of age. Repayment can be done through Interbank GIRO transfers or through deposits at HSBC Credit Deposit machines.
Hong Leong Mortgage Plus Housing Loan
This home loan offered by Hong Leong is a fully flexible home loan with a floating interest rate. The tenure of this loan is up to 35 years and has up to 90% finance margin. This loan has an approval period of only 30 days. The loan has a lock in period of 3 years and if the loan is paid off within the lock in period an early settlement fee amounting to 3% of the remaining balance is charged. This home loan also requires that the borrow take out a MRTA and fire insurance. The Hong Leong Mortgage plus also provides options for refinancing. The minimum annual income required to avail this loan is RM 24,000 and the borrower must have attained 24 years of age.
AmBank Home Link
This home loan by AmBank has a 30 day approval period thereby allowing you to own your property sooner. It is a fully flexible home loan with a floating interest rate and a finance margin of up to 95%. The tenure of this AmBank Home Loan Ambank Home loan is capped to a maximum of 35 years with a 3 year lock in period. If the loan is paid off within the lock in period an early settlement fee of 2% of the remaining balance is charged. This loan links the loan account with your current account and thereby effectively allows you to save on loan interest. The loan is tailored for those with a variable income but the minimum annual income required to avail this loan is RM 24,000. The loan requires that the borrower take out a MRTA and a fire insurance and the borrower has to have attained a minimum age of 18 years.
Bank Islam Wahdah Home Financing
This loan offered by Bank Islam is an Islamic loan based on the Tawarruq concept and is strictly for refinancing. The loan is semi flexible and has a floating interest rate. The tenure is up to 35 years and the loan has a lock in period of 5 years. If the loan is fully repaid within the lock in period, an early settlement fee which is subject to the terms and conditions set forth by the bank. This loan is available only for completed properties and not under construction properties. This loan allows you to save by providing discounted charges on Stamp duty and has no processing fees. The bank also provides option of differing payment during the months of November and December. The loan requires the borrower to take out a MRTT and a fire insurance policy. The minimum age to avail this loan is 18 years and the applicant should earn a minimum income of RM 24,000 annually.
Home loans offer a convenient way to come up with the additional funding required to purchase a home or property but one should do proper research to find the loan best suited for them and read the terms and conditions carefully before applying for a loan.
Useful Home Loan Articles
- Fixed and Variable Housing Loan Interest Rates
- Checklist for applying Home Loan in Malaysia
- Taxation process of home loans in Malaysia