Purchasing a home is a significant investment and requires considerable financial planning. Most people opt for housing loan in Malaysia to finance their dream homes. However, choosing the right housing loan can be daunting with the plethora of options available in the market. This article aims to simplify the process and help you make an informed decision by highlighting the top 5 best housing loans in Malaysia.
Types of Housing Loan in Malaysia
Before diving into the top 5 best housing loan in Malaysia, it’s essential to understand the types of housing loans available in Malaysia. There are two types of housing loans:
Conventional Housing Loan
A conventional housing loan is a standard loan that offers a fixed interest rate. The loan period can range from 10 to 35 years, and the loan amount can vary between 90% to 100% of the property’s value.
Islamic Housing Loan
An Islamic housing loan follows Shariah principles and is interest-free. Instead of charging interest, the lender charges a profit rate based on the property’s value, which is determined at the start of the loan. The loan period and loan amount are similar to conventional housing loans.
Top 5 Best Housing Loan in Malaysia
1. Maybank Housing Loan in Malaysia
Maybank Home Loan is one of the most popular housing loan in Malaysia. It offers flexible loan amounts and repayment periods ranging from 5 to 35 years. Maybank Home Loan also offers a competitive interest rate, with the option of a fixed or variable interest rate.
Maybank is another option on the list for a flexible home loan package. One of their most popular housing loans in Malaysia is MaxiHome, which is known for its flexibility despite being only semi-flexible.
MaxiHome is a type of Maybank housing loan that allows for withdrawals and takes into account both your current and future needs, providing more flexible repayment options. With MaxiHome, you can qualify for a loan of up to 40% of your income, compared to the normal limit of one-third of your salary.
Additionally, there is an exclusive offer to revise monthly payments to better suit your financial situation when you sign up for this loan. Maybank also offers low early settlement penalties, has the largest bank branch network, and provides high-end financing options.
| Website | Maybank Home Loan |
| Interest Rate | 3.70% |
| Margin | Up to 110% (First Home Scheme) |
| Tenure | Up to 35 year or Age of 70 |
| Phone | +60 3-7958 1486 |
Pros ：
- Flexible to choose term loan/overdraft or both
- Flexibility to redraw advance/additional payments
- Higher loan eligibility
- Flexibility to revise monthly installments
Cons:
- Business Man is difficult to get approve
- Prefer Stable income (Example : Work engineer in Jabil, Intel)
2. CIMB Malaysia Housing Loan
CIMB Home Loan is another popular housing loan in Malaysia. It offers a loan amount of up to 90% of the property’s value, with flexible repayment periods of up to 35 years. CIMB Home Loan also offers a competitive interest rate, with the option of a fixed or variable interest rate.
| Website | CIMB Housing Loan |
| Interest Rate | Below RM200k – As low as 4.25%
RM200K – 350K – As low as 3.90% Above RM350K – As low as 3.85% |
| Margin | Up to 95% |
| Tenure | Up to 35 year or Age of 70 |
| Phone | +603 6204 7788 |
Document Need :
- Copy of NRIC
- Sales and Purchase Agreement or the developer’s booking form
- Copy of Identification Card (IC)
- Latest of 6month salaries Slip and EPF
- Latest of 6 month Bank Statement
- Business Registration Document (For Business Man Only)
3. Public Bank Housing Loan Malaysia
Public Bank Home Loan is a great option for those looking for a low-interest rate. It offers a loan amount of up to 90% of the property’s value, with flexible repayment periods of up to 35 years. Public Bank Home Loan also offers a competitive fixed interest rate.
| Website | Public Bank Housing Loan |
| Interest Rate | Year 1 & 2 : 3.85%
Year 3 above : 3.65% |
| Margin | Up to 90% |
| Tenure | Up to 35 year or Age of 70 |
| [email protected] |
Pros:
- Fast Process Speed
- Multiple Branch Selected
- Low Interest Rates
- High approve rate for business man
Cons：
- High disposable income (DI) deducted
- Focus on previous payment behavior
- Clean CCRIS is hard to get approve
4. Hong Leong Malaysia Housing Loan
Hong Leong Home Loan is another great option for those looking for a competitive interest rate. It offers a loan amount of up to 90% of the property’s value, with flexible repayment periods of up to 35 years. Hong Leong Home Loan also offers a fixed or variable interest rate.
| Website | Hong Leong Housing Loan |
| Interest Rate | 3.80% |
| Margin | Up to 90% |
| Tenure | Up to 35 year or Age of 70 |
| Phone | +60 3-7626 8899 |
Pros :
- Full Flexi Loan
- Comprehensive product suite: Term Loans with Optional Overdraft, Semi-Flexi and Full-Flexi Packages
Cons :
- Slow Processing Speed
- Minimum MRTA require
5. Alliance Bank Housing Loan Malaysia
Alliance Bank Home Loan is a popular option for those looking for a low down payment option. It offers a loan amount of up to 95% of the property’s value, with flexible repayment periods of up to 35 years. Alliance Bank Home Loan also offers a competitive fixed or variable interest rate.
Managing your ongoing loans, payment balances, and multiple repayments can be a challenging task to handle alone. Fortunately, AOA is here to assist you with all of these financial obligations. AOA offers both an Overdraft Facility and a Cashline Facility to help you determine the best repayment plan for your needs. By using these facilities, you can enjoy the peace of mind that comes with having fewer monthly responsibilities to worry about and the flexibility to take your time.
| Website | Alliance Bank Housing Loan |
| Interest Rate | 3.75% |
| Margin | Up to 90% |
| Tenure | Up to 35 year or Age of 70 |
| Phone | +60 3-5516 9988 |
Pros :
- Clean CCRIS is able to approve
- High approval rate
- Low disposable income deducted
Cons:
- Slow Processing Speed
Conclusion
Choosing the right housing loan in Malaysia is crucial to ensure you can afford your dream home without any financial constraints. The top 5 best housing loan in Malaysia, namely Maybank Home Loan, CIMB Home Loan, Public Bank Home Loan, Hong Leong Home Loan, and Alliance Bank Home Loan, offer competitive interest rates, flexible repayment periods, and various loan amounts to cater to your financial needs. It’s important to do your research and compare the different options available to make an informed decision.
Understand the latest finance news in Malaysia to know the latest interest rate.
Housing Loan in Malaysia FAQs
1. What is the minimum down payment required for housing loans in Malaysia?
The minimum down payment required for housing loan in Malaysia is 10% of the property’s value.
2. Can I switch my housing loan to another bank?
Yes, you can switch your housing loan to another bank. However, there may be penalties and fees involved
3. What is the difference between a conventional housing loan and an Islamic housing loan?
A conventional housing loan charges interest, whereas an Islamic housing loan follows Shariah principles and charges a profit rate instead of interest.
4. Can I negotiate the interest rate of a housing loan?
Yes, you can negotiate the interest rate of a housing loan with the lender. However, it depends on various factors such as your credit score, income, and loan amount.
5. How long does it take to approve a housing loan in Malaysia?
The approval time for a housing loan in Malaysia can range from a few days to a few weeks, depending on the lender and the complexity of the application.
In conclusion, choosing the right housing loan in Malaysia requires thorough research and comparison. The top 5 best housing loans in Malaysia, namely Maybank Home Loan, CIMB Home Loan, Public Bank Home Loan, Hong Leong Home Loan, and Alliance Bank Home Loan, offer competitive interest rates, flexible repayment periods, and various loan amounts to cater to your financial needs. However, it’s crucial to read the fine print and understand the terms and conditions before committing to a housing loan.
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