I don’t know what to look for in a home loan

This is a list of things you need to keep in mind the next time you’re applying for a home loan.

ML has then compiled a list of Housing Loan Common Fees and Charges for many common banking institutions in Malaysia. Also, we’ve also told you that there are many types of home loan available in Malaysia. Among the other two factors affecting your home loan is the current BLR Rate Malaysia 2010 and also the Consumer Price Index (CPI) Malaysia 2010 which will guide you through the process of reiterating your personal monetary expenses.

Things to look out for in a home loan

  1. Types of Home Loan
    This refers to types of home loan package you’re getting. Whether it’s Islamic or Conventional, Low Deposit or Zero Moving, state all necessary loan properties in this section. Read more about Types of Home Loan.
  2. Margin of Financing
    In Percentage (%) Value. This expression is the value and amount of loan granted by the banking institution to you as to secure the loan. Can go up to 95%.
  3. Tenure of Loan
    Duration of the loan (in years) to how long will the loan be fully paid, off its capital and interests.
  4. Base Lending Rate (BLR)
    Interest rate from the banking institution to you, covering their administrative costs and costs of funds.
  5. Interest Rate
    Some home loan packages would offer you different interest rates for a few years, or a BLR rate reduction for a number of years. Ask the banking official to explain thoroughly to you what are their home loan packages’s interest rates are.
  6. Monthly vs Daily Rest
    Whether your interests will be calculated on a daily basis (Daily Rest) or Monthly Basis (Monthly Rest).
  7. Monthly Installment
    Ask your banking official to explain to you how much are your monthly installments – First (1st) year to the fifth (5th) year. Also, ask about how much will go to your interests before the capital is touched.
  8. Legal Fees for Loan Agreement
    Professional legal fees for legal documents necessary for your home loan contracts.
  9. Stamp Duty Charges
    For your loan agreement.
  10. Disbursement Fees
    Different type of fees such as registration of land search fee, charge fee, bankruptcy search fee incurred by banking institutions.
  11. Processing Fees
    The one time fee charged by the banking institution for processing documents.
  12. Valuation Fees
    (Only for completed properties) Written analysis of the value of home by the appointed valuer of the banking institution you applied the home loan from.
  13. Insurance
    1. MRTA (Mortgage Reducing Term Assurance)?
    2. Homeowner’s Insurance
    3. Is there a loan for insurance?
  14. Others
    1. Are there partial prepayments?
    2. Is there a penalty on early settlements?

The mortgage and financial consulting services are offered to you FREE of charge without any obligations. Kindly contact us or email to consultant@malaysialoan.com.my if you need any enquiry. Thank You.

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