Mortgages

There are many Malaysian banks that are geared to the needs of foreign property buyers.

The following banks offer mortgages for foreigners:

Bumiputra-Commerce

Citibank

CMB Bank

Hongkong Bank

Maybank

OCBC Bank

Public Bank

RHB Bank

Standard Chartered Bank

UOB Bank

To arrange a mortgage, the banks may be approached directly or via a developer or broker.

It is possible to finance 60 to 90 per cent of the value of the property through a mortgage. Typically, to qualify for a mortgage the purchaser’s monthly loan repayment must be less than a third of their income. There is a maximum age limit of 60, although 65 may apply in some circumstances.

For those purchasing a property through the Malaysia My Second Home programme, the finance limit is 60 per cent.

Applying for a mortgage is relatively straightforward. Generally, the bank will ask for wage slips covering a period of three months, three bank statements, and a P60 for employees. They will also take account of deposits and other assets.

Malaysian banks set their interest rates based on the Malaysian base lending rate, which was around 6.75 per cent in early December 2008.  But many banks offer considerably lower rates.  Mortgage terms are usually for 25 or 30 years.

With a changing market and government legislation, check with the lender on the latest mortgage conditions.