If you plan to buy a house, you’ll most probably need a home loan. However, getting a good home loan is actually pretty challenging. You’ll need to determine the kind of loan you need, and you’ll have to find out the interest rates so you can make comparison. Traditionally, that means visiting or calling up all the banks.
In Malaysia, there are generally two types of home loan – flexi, and non-flexi (or “conventional”). Flexi loans give you the freedom to reduce your loan interest with additional income, whilst non-flexi loans are more rigid and have the same repayment instalment throughout the loan period. Depending on what you need, you can opt for either. Personally, I believe flexi loan to be more beneficial.
In 2013, Bank Negara introduced a new regulation, which limits home loan period in Malaysia to a maximum of 35 years. If you are planning to purchase a more expensive home by stretching your loan period to 45 years or beyond, you should take note that you can’t do that now.
These days, home loan rates can differ greatly from bank to bank. For a typical flexi home loan of RM500,000, rates can be anything from BLR – 2.4% to BLR – 2.2%, which translates to a difference of tens of thousands in Ringgit value. As such, comparison is a must if you want to get a home loan that benefits your wallet the most.
For your comparison purpose, the table below contains some of the home loan packages with the most competitive rates in Malaysia (as at September 2013). The lowest interest rates shown are dependent on the loan amounts. Generally, the higher the loan amount, the better the rate is.
Do take note that the packages may change, so you’re advised to confirm with the banks / financial institutions to ascertain the prevailing rates and details.
|Entity||Product Name||Type||Lowest Interest Rate||Details|
|AIA||AIA Home Loan||Fixed Rate||4.2%||
|Standard Chartered Bank||Mortgage One||Full-flexi||4.1%||
|Mortgage KLIBOR||Pegged to KLIBOR||
|Conventional Housing Loan||Conventional||
|Standard Chartered Saadiq||My Home-i||Conventional||4.1%||
|Ambank Islamic||Home Financing-i||Conventional||4.15%||
|Flexi Home Financing-i||Full-flexi||
If I am having a flexi loan account and getting rental income
is my income that I have to declare to income tax My rental income for 12 months minus interest paid in the flexiloan account during the year (including interest saved by deposit) – maintainence charges, – quit rent- charges to maintain the flat eg marble polish , fire insurance and council assessment