Owning a home is in everybody’s bucket list at certain point of his/her life. To facilitate that dream, Public Bank of Malaysia offers to its customers a variety of home loans that suit their requirements and also keep a check on the financial budget. Find below the types of home loans offered by the bank:
The interest rate for the housing loan schemes depends upon the Base Rate (BR). It is calculated with the formula: BR + 0.83%.
The interest rate will change as per the increase or decrease in the BR. The Base Rate for Public Bank currently stands at 3.77% p.a.
|Public Bank Home Loan||Fees and Charges|
|Processing Fee/Facility Fee||For financing up to RM30,000 = RM53 Between RM30,001 to RM100,000 = RM106 Above RM100,000 = RM212|
|Stamp Duty Charges||As per Stamp Duty Act 1949 (Revised in 1989)|
|Early Termination Fee||If the early settlement is done during the lock-in period: Loan amount of RM200,000 and less = 3% of the approved loan amount Above RM200,000 = 2% of the approved loan amount After the lock-in period: 1% p.a. on the overdue amount|
|Disbursement Fee||As per the bank’s discretion|
A customer needs to fulfil the following eligibility criteria while applying for the home loan schemes with Public Bank:
|Nationality Criterion||Malaysian citizens|
|Age Criteria||Minimum age: 18 years Maximum age: 70 years|
|Income Criteria||As per the bank’s discretion|
An applicant needs to provide the following documents while applying for the Public Bank Home Loan:
For Salaried Individual:
For Self-employed Individual:
5 HOME Plan: This home financing is calculated on a variable or fixed rate basis and the customers need to keep their property as security for this loan scheme. The plan comes with two different home financing packages as per the customer’s budget:
MORE Plan: It is a refinancing plan over your residential property and it is also calculated on variable/fixed rate basis. Through this plan, a customer can choose to pay his/her child’s education, housing needs or can go for a long-pending holiday. MORE Plan also comes with two packages that a customer can choose from according to their needs.
Offline Application: Customers can visit the nearest Public Bank branch and collect the application form. After filling all the details, the form needs to be submitted to the bank representatives with a set of mandatory documents. Applicants will be informed about the status of the application by the representatives within a few business days.
Online Application: The Public Bank’s official website displays the forms required for various home loan schemes. Applicants can choose the scheme most suitable for them and submit the duly-filled form through the official website. They will then receive a call from the customer care representative to carry the process forward.
A customer can opt for refinancing options through the bank’s programme called MORE Plan. The refinancing can be used for the house’s renovation, or to meet any emergency expense that may crop up.
In case of any difficulty in the application process or if customers are looking for more details about the home loan packages offered by the Public Bank, they can contact the customer care representatives on the following hotline: 1 800-22-5555.
Q. What kind of interest rates are offered by the bank?
A. The bank offers fixed as well as variable interest rates for its home loan schemes depending on the customer’s choice.
Q. If I choose to take an insurance coverage along with my home loan, what kind of coverage can I get?
A. You will be provided a coverage in case of sudden death or permanent physical damage or disability due to any unforeseen event or accident etc.
Q. What is a BR or Base Rate? Can it get altered?
A. Base Rate is made up of two parts: benchmark cost of funds (COF) and the Statutory Reserve Requirement (SRR) cost that is imposed by Bank Negara Malaysia. The Base Rate changes as per the changes in the economic conditions of the globe. Sometimes, even local financial fluctuation can affect the Base Rate.
Q. If I fail to make my instalments, can the bank offset them from my account?
A. The bank holds the right to set-off any credit balance in your account maintained with it. Before setting off the balance, the bank will inform you in advance by sending 7 days prior notice.
Q. Is taking an insurance coverage mandatory?
A. You are instructed to take up an insurance cover with the company approved by the bank to adequately insure the property to be charged which includes flood, riot, strike and any other spiteful damages.