Property Loan

A property/mortgage loan is a debt instrument. A mortgage is a loan that used land or immovable assets as a security for the loan. These loans are tied explicitly to a real-estate property, such as land or a house. The borrower signs an agreement with the lender (usually a bank or financial institution) in which the borrower collects cash in advance and then makes payments over a specified period of time until the lender is paid back in full.

Property Loan Types in Malaysia

Choosing a mortgage/ housing loan package is not just about the interest rate and fees you are going to pay. In fact, you will also need to consider the type of mortgage/ housing loan that suits you. Typically, there are four types of loans, which are flexi loans, semi-flexi loans, non-flexi loans, and fixed-rate loans:

Flexi Loan:

• Full Flexi is run on a mortgage current account, you can withdraw and deposit money to the mortgage current account without any additional charges and procedures.
• The installment amount will be deducted from the mortgage current account as scheduled every month.
• Extra money can dump into mortgage current account anytime to save interest and withdraw anytime at no fee (just online transfer from current account).
• You will need to pay a monthly maintenance fee and one time setup fee.
• Suitable for self-employed or businessman, due to always have extra cash flow from business or investment prior paying to supplier/creditor.

Semi-Flexi Loan:

• You can make advance payments on the loan, without sticking to an unchanged loan schedule.
• Semi flexi don’t have current account (like full flexi), just loan account, money can put in to save interest.
• Can dump in money to loan account to save interest. For Withdrawal need to pay one time service charges RM25 or RM50, withdrawal at bank counter.
• You will have to give 2 to 5 days of buffer time to the bank prior to withdrawal.
• You need to inform the bank to make the capital prepayment.
• Suitable for fixed income earner / employment income.

Non-Flexi Loan/ Basic Term Loan:

• A loan with a fixed repayment schedule and the same monthly instalment throughout the entire repayment period of the loan.
• Borrower need to walk into physical bank counter to request the additional payment arrangement.
• Banks restrict the borrowers from withdrawing extra funds which may have paid more than the scheduled amount.

Fixed-rate Loan:

• The same interest rate for years, no matter what happens to the interest rates in the period.
• Less stress as you will be paying the same loan amount every month.

STEP BY STEP TO APPLY FOR A PROPERTY/MORTGAGE LOAN