Some home loans come with great interest rates, while some come with great features. But the key factor is to be able to finance the home without much trouble. While some banks offer a margin of 80%, MBSB Bank goes a step further to be able to provide a product that is more than perfect when it comes to providing fiancing margin at 105%. Now, this is possibel through complete fiancing as well as the optional isnurance of MRTT and MRTA. This option is available for properties that have been already completed or are under ocnstruction. The loan tenure time is also conveneient for people who do not wish to be overwhelmed by really big payments. The lockin period is at 5 years and the loan has the advanatge of EPF withdrawal at RM 21.20 for every request made including GST. There is also an option for fire insurance. For more details on this product, read on for more details. The rates of interest charged by this bank is based on the loan amount availed. So, the minimum loan amount is RM 500,000. If the loan amount ranges between RM 500,001 to Rm 1000000, chargeable interest rate on the loans will be 5.85% p.a. If the loan amount is higher than RM 1 million, then the interest rate may not be 5.85% p.a. The final decision is made on the bank’s dicretion. Read on to know more about this product.
You’re probably eligible for an MBSB Bank Home Loan if you are
At least 21 years old
Less than 75 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your MBSB Bank Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ 105% (including financing MRTT / MRTA)
Instalments of other loans lower
Increase your eligible MBSB 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 MBSB Bank Home Loan
- 1. NRIC / Identity Card.
- 2. Property Valuation Report.
- 3. Latest EPF statements.
- 4. Latest EA form.
- 5.Completed Application form.
- 6. Documentation for salaried applicants:
- Latest 3 consecutive months’ salary slips / vouchers
- 7. Documentation for self-employed applicants:
- Latest 6 months Bank Statement
- Business Registration / Form 24 and 20
MBSB Bank Home Loan Interest RatesUpdated on 21 Oct 2016
|Margin of Finance||105% (including financing MRTT / MRTA)|
|Guarantor Requirement||No Guarantee Required|
MBSB stands for Malaysia Building Society Berhad and was established in 1950. It was listed on the stock exchange of Malaysia and Singapore way back in 1963 and became an exempt finance company in 1972. With its huge experience, it also has a lot of expertise under its belt in the realm of retail business, corporate business, wholesale financing and financial products in line with the Shariah concept.
MBSB Home Loan Malaysia
The home loans offered by MBSB cater to the needs of the borrower and offer more than just a means to finance a property. The home loans from MBSB are a wholesome Mortgage package that offers financing and deposit benefits and allows borrowers to choose their protection type. The home loans cover both under construction and completed properties and allows for flexible modes of payment and even offers preferential rates on deposits made.
Features of the MBSB Home Loan
- Due to the large amount of financing provided by the MBSB home loans, the late payment penalty is higher and stands at 9.1% of the outstanding balance
- The loan covers both under construction and completed properties
- The loan has a tenure of up to 35 years
- The MBSB loans have a lock in period of 5 years
- The loan provides for up to 90% of the finance margin
- The loan provides for EPF withdrawal at RM 21.20 per request
- The fee for redemption letters is RM 53 per request
- The loan application has a time period of 30 days for approval
- The loan has insurance types of MRTA, MRTT and Fire Insurance
- The home loan has an early settlement fee which is the higher of 3.5% of the outstanding loan or RM 6000
MBSB Home Loan Interest Rates
The interest rates charged by MBSB depend on the amount of the loan availed. The minimum loan amount is RM 500,000 and if the amount borrowed ranges between RM 500,001 to Rm 1000000 then the interest rate charged on the loan is 5.85% p.a. For loan amounts exceeding RM 1 Million the interest is 5.85% p.a. The effective interest rate will be decided by MBSB at the time of taking out the home loan
Types of Home Loans available from MBSB
MBSB offers 4 types of home loans to their customers whose salient features are given below
The plan is designed for borrowers who want to go big with their property investments and is applicable for under construction properties as well as completed properties. The minimum financing amount available under this loan is RM 500,000 and offers competitive rates. The tenure of this loan can vary from 35 years to when the borrower attains 75 years, whichever is earlier. The loan offers borrowers a range of flexible insurance policies to choose from. The insurance policies offered are MRTA, MRTT and fire insurance.
The plan follows the Islamic concept of Bai’ Bithaman Ajil. The tenure of this loan is either 35 years or up to when the borrower attains the age of 75 years. Financing is available for legal fee whereas the processing fees for this loan is waived. The loan covers both under construction and completed properties and provides flexible modes of payment such as fixed payment and bullet payment.
MBSB My First Home Scheme-i:
This plan provides for up to 105% of the financing margin and follows the BBA Shariah concept and this loan is eligible for Malaysian citizens under the age of 40 whose property values are in the range of RM 100,000 to RM 500,000. It does not require a maximum annual income limit and waives processing fees
MBSB My First Home Buyer Scheme:
This plan is for Malaysians between the ages of 18 and 35 who are first time home buyers. The plan is available only for salaried persons and business owners cannot apply for this loan. The applicant needs to have been an employee at the current place of employment for a minimum of 6 months.
How to apply for MBSB Home Loans
Applying for a MBSB home loan is a hassle free process. One can find all the required information and application forms on their website and can choose from the home loan products that best suit them. Alternatively they can apply for the home loan at the MBSB branch nearest to them. While applying for a loan, applicants will need to have certain documents in hand and need to meet certain eligibility criteria for the loan to be successfully approved.
- The minimum Annual income of the applicant needs to be at least RM 24000.
- The minimum age of the applicant needs to be 18 years as at last birthday and the maximum permissible age for an applicant is 75 years of age as at last birthday.
- For My First Home buyer scheme, the maximum age of the applicant is 35 years of age and for My First Home Scheme-I the maximum age of the applicant cannot exceed 40 years of age
- A person of Malaysian Nationality can apply for the MBSB Home Loans
- The applicant needs to submit their identity card
- A copy of the Property Valuation Report is required
- The applicant needs to have the copy of the latest pay slips dating back 3 months
- The applicant needs to have the latest EA statement
- The applicant needs to have the latest EPF statement dating back at least a year
- The copy of the latest Tax returns or tax payment receipts are needed
- If the applicant is employed, then a copy of the employment letter and remuneration
- For self-employed applicants, a copy of the identity card along with business registration form 24 and 20 is required
- Self-employed applicants also require 6 months of current or saving account bank statement and 1 year worth of tax receipts along with a property valuation report
MBSB Housing Loan F.A.Qs
Q) Will borrowers be entitled to extra privileges from MBSB Home Loans?
A) Yes. Applicants will receive additional life insurance and investment link coverage that offers extra returns on completion of the tenure. Applicants can also receive preferential rates on fixed deposits when they deposit an amount of up to RM 50000 in a MBSB Fixed Deposit Account
Q) Are the modes of payment flexible?
A) The MBSB Home loans are designed to offer flexibility in repayment for the customers. These are designed keeping the financial constraints of a borrower in mind and offer flexible payment modes such as fixed repayment, bullet repayment or gradual repayment.
Q) What are the insurance policies available on this loan?
A) Borrowers can avail insurance policies such as MRTA, MRTT and fire insurance policies on their loan which is highly recommended
Other Products offered by MBSB:
Apart from offering Home Loan,MBSB offers other products and services which include: