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Frequently Asked Questions (FAQ)
Mortgage Loans
A mortgage loan is a type of financing that helps individuals purchase a property. The property itself serves as collateral for the loan.
Loan eligibility depends on factors such as your income, credit score, existing debts, employment status, and property value. Banks assess these to determine your approval chances.
- Standard Home Loan – For purchasing a new property.
- Refinancing Loan – Transfer an existing home loan to another bank for better interest rates.
- Cash-Out Refinancing – Refinance your loan while withdrawing additional cash based on your home’s equity.
- Debt Consolidation Loan – Combine multiple debts into one mortgage for lower interest rates.
Most home loans in Malaysia have a tenure of 10 to 35 years, depending on your age and financial capability.
Typically, banks offer up to 90% + 5% of the property price for first-time homebuyers. The percentage may be lower for subsequent properties.
Interest Rates & Loan Repayments
Interest rates are usually floating rates based on the Overnight Policy Rate (OPR) set by Bank Negara Malaysia, plus a bank’s spread. Some banks offer fixed-rate loans.
Fixed Rate: Stays the same throughout the loan tenure.
Floating Rate: Changes based on market conditions and the bank’s Base Rate (BR).
Yes, most banks allow extra payments, but some may impose penalties if made during the lock-in period (usually 3-5 years).
Missing a payment may result in late fees, higher interest charges, and a negative impact on your credit score. Consistent non-payment could lead to foreclosure.
Refinancing & Cash-Out Options
Refinancing means transferring your existing mortgage to another bank for a lower interest rate, better loan terms, or additional cash-out options.
- If interest rates have dropped, allowing you to save on repayments.
- If you need to cash out some of your home equity for investment or personal use.
- If you want to consolidate high-interest debts into a single, lower-rate loan.
Banks typically allow you to withdraw up to 80% of your property value, minus your outstanding loan balance.
Application & Approval Process
Approval can take 5-14 working days, depending on document submission and bank processing time.
- For salaried employees: Payslips, bank statements, EPF statement, income tax records.
- For self-employed individuals: Business registration, company financials, tax filings.
Banks consider income stability, credit score, existing financial commitments, employment type, and debt-to-income ratio.
There’s no fixed score, but a higher score (650+) improves your chances of approval and better loan terms.
Legal & Fees
- Stamp Duty – Based on property price.
- Legal Fees – For loan agreement and property transfer.
- Valuation Fees – For property appraisal.
- Mortgage Insurance (MRTA / MLTA) – Optional but recommended for loan protection.
- MRTA (Mortgage Reducing Term Assurance) – Covers the outstanding loan in case of death or disability.
- MLTA (Mortgage Level Term Assurance) – Provides additional financial protection for beneficiaries. (It’s not mandatory but can provide security for your family.)
Yes, but restrictions apply. Foreigners usually need a higher down payment and may have limited financing options.
Getting Started
Finding a top wealth management firm to trust with your money and financial future is just as important as finding a good doctor. You want someone you can trust, who has your best interests at heart, and takes the time to get to know you. Let’s get started!
Please click on the link to our calendar or call our office at 292-3454-9008, and our team will set up your initial complimentary consultation. In this meeting, we will review your full financial picture, and evaluate if we are the best financial advisor for you.
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If you cannot find answer to your question in our FAQ, you can always contact us. We will answer to you shortly!
