Hong Leong Bank (HLB) is a popular Malaysian Islamic bank that offers a wide range of personal banking services to its customers. Hong Leong Islamic Bank Berhad (HLISB) is wholly owned subsidiary of HLB that began its operations in 2005. HLB currently operates 8 full-Islamic branches, and 270 other branches, apart from over 1,400 self-service terminals in Malaysia. The Islamic banking services and products offered by the bank are Shariah-compliant. In 2011, HLISB merged with EONCap Islamic Bank Berhad, which was the first of two Islamic banks in Malaysia.
You’re probably eligible for an Hong Leong Islamic Bank Home Loan if you are
At least 21 years old
Less than 70 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your Hong Leong Islamic Bank Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ Up to 90% + 5% MRTT
Instalments of other loans lower
Increase your eligible Hong Leong Islamic Bank Home Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 35 years
Alternatively add your parents
Documentation needed to apply for an Hong Leong Islamic Bank Home Loan
- 1. Latest Borang BE (supported by tax payment receipt).
- 2. Documentation for salaried applicants:
- Latest 3 months salary slips
- Latest EPF statement with at least 6 months contribution
- Latest 3 months bank statement / saving passbook
- Letter of employment
- 3. Documentation for self-employed applicants:
- Latest 6 months bank statements or savings passbook
- Latest 6 months commission statements
Hong Leong Islamic Bank Home Loan Interest RatesUpdated on 09 Dec 2016
|Margin of Finance||Up to 90% + 5% MRTT|
|Guarantor Requirement||Guarantee Required|
Hong Leong Bank offers various loans for purchase of vehicles and property, and for starting a business, among others. Their services are available to both companies and individuals. The bank also serves both Muslims and non-Muslims.
CM Flexi Property Financing-i
Malaysians can own their dream home with help from Hong Leong Bank, through their flexible property financing solutions. Hong Leong Bank offers home loans under the CM Flexi Property Financing-i package. The scheme is based on the Shariah concept of Murabahah via Tawarruq arrangement (Commodity Murabahah). In simple terms, this means that the bank pays money for the property instead of you and becomes the owner. The property becomes yours once you pay off the loan you have taken from the bank.
Home loans from HLB can be used to buy a house, invest in a property, construct a new house or renovate your existing house. The bank’s loans are flexible, easy to procure, and come with attractive rates.
Features of Hong Leong Islamic Bank Home Loan
Here are a few reasons why you may want to choose Hong Leong Bank over others in Malaysia:
- The loan application process is simple with minimal documentation.
- Hong Leong Bank’s primary focus is on customer satisfaction.
- The loan is approved and credited to you at a comparatively faster pace.
- The interest rates offered by the bank are competitive and affordable.
- You could close the loan through advance repayments of any amount at any time during the tenure of your loan.
- You could break the receipt of the loan amount into smaller installments as per your requirements while buying, constructing, or renovating a house.
- The tenure of loan could be extended to up to 35 years or 70 years of age, whichever comes first. It also depends on your monthly income.
- You can pay your EMIs in multiple ways:
- Standing Instructions to debit from your savings or current account
- Internet Banking or Smartphone app
- Malaysian Electronic Payment System (MEPS) or Interbank Giro (IBG)
- ATM transfer to your loan account
- Pay cash or cheque to your loan account through deposit machines or go to your nearest branch.
- You are protected against risks in financing rates by the ceiling rate, which puts a cap on the rate applicable to your loan.
- New financing case gets a stamp duty waiver of 20 percent while refinancing from conventional loan to Islamic loan gets a 100 percent waiver.
- You could choose Mortgage Term Reducing Takaful (MRTT) to insure against the loss of property.
Eligibility criteria for Hong Leong Islamic Home Loan
To apply for a home loan from Hong Leong Bank, you have to:
- Be a Malaysian citizen with valid proof of identity and address
- Be above the age of 21 and below 70 years
- Have a minimum employment experience of 6 months
- Your EMI payment cannot be more than 50 percent of your monthly income.
- If you are seeking loan to construct a house on your own land, the land area has to be more than 200 sq. m.
- You will also have to furnish proof of income and comply with the other loan-specific requirements.
Hong Leong Islamic Home Loan Interest Rate
The amount borrowed under a Hong Leong Islamic Bank Home Loan depends on the property or land area as well as the salary of the applicant. The bank provides up to 90 percent of the property value or the estimated cost of construction. This means that you must have at least 10 percent of the cost of property as down payment before you prepare to make the purchase. HLB also insists that the EMI of the loan you apply for should not exceed 50 percent of your monthly income.
The interest rates under the CM Flexi Property Financing-i plan are competitive. The Islamic Base Rate of 3.84 percent that is effective from January 2015, determines the floating rate of interest for the home loan package.
If you are a salaried individual looking to apply for a home loan, you need the following documents:
- Salary slips of the latest 3 months
- Latest Borang BE (supported by tax payment receipt)
- Latest EPF statement
- Bank statement/savings passbook for the latest 3 months
- Letter of employment
If you are a self-employed individual, ensure you have the below documents:
- Bank statement or passbook for the latest 6 months
- Latest Borang B (supported by tax payment receipt)
- Commission statements for the latest 6 months
Companies looking for a property loan under the CM Flexi Property Financing-i package need to furnish these documents:
- Audited account for the latest 3 years
- Bank statements for the latest 6 months
- Latest Borang B of the directors (supported by tax payment receipt)
Frequently Asked Questions:
Can I take a home loan for home improvement or extension under the CM Flexi Property Financing-i?
Yes. You can avail the home loan for buying a house, constructing a new house, home repairs, improvement and extension.
Can I apply for loan with a joint applicant other than my spouse?
Yes. The applicants do not have to be in a relationship with the main account holder to apply for a joint loan.
Can I show additional income to increase the limit of the borrowing amount?
Yes. You can show up to 50 percent of additional income for a higher finance.
What is the maximum tenure for which I can avail home loan under CM Flexi Property Financing-i?
The maximum tenure for which CM Flexi Property Financing-i is offered is 35 years. However, the applicant can avail the loan for a maximum of 70 years of age. The loan tenure should be over before one turns 70 years old.
Can I close the loan before the agreed tenure is over?
Yes. You can close your loan at any time, but there will be some charges of foreclosure of the loan.
What charges other than interest are applicable?
There will be charges for stamp duty, legal consultation, valuation and disbursement.
Can I terminate the application before disbursement of the loan?
Yes. But if you are terminating the loan application before disbursement of the amount, a fee of RM2,000 will be charged.
Is it mandatory to buy Mortgage Term Reducing Takaful along with this plan?
No. It is not mandatory. You can opt for MRTT if you wish to be protected against loss of property.
Under what circumstances can customers get a rebate?
Rebate will be granted in the following situations:
- If the effective profit rate is lesser than the profit amount based on the ceiling rate
- If the work of the house is completed earlier than expected (during grace period)
- If you are making early settlement of loan or financing restructuring
- In case of default or termination of financing facility before maturity date
How can I calculate loan installments for Hong Leong Islamic Home Loan?
Bbazaar.my hosts an online loan installment calculator for Hon Leong Islamic Bank home loan. The calculator considers parameters such as loan amount, tenure, profit rate, and processing fees to calculate your monthly loan EMI. These parameters can be varied to reach an installment amount that suits your pocket the best. By varying the rate of interest and processing fee, customers can also learn which lending bank suits their needs and can thus zero down on the loan provider. The online calculator also furnishes an amortisation table, which is a graphical representation of your balance loan principal and interest amounts.
Other Products offered by Hong Leong Islamic:
Apart from offering Home Loan,Hong Leong Islamic offers other products and services which include: