Bank Loans

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Hi All
I have just been doing some very basic internet searching on Malaysian bank loans. It seems that MM2H is a useful thing to have when it comes to loan flexibility.
For example the CIMB site says that housing loans to foreigners (non PR) are limited to 70% of vauation and must be repaid by age 65. If you are on MM2H it moves to 85% of valuation and repayment by age 70.
Cheers 

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Hi Donohue

What kind of interest rates are there on offer?

cheers

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 The site I was looking at didn't have the rates.
I found the folowing on another site;
 Meanwhile, CIMB Bank Bhd and CIMB Islamic Bank Bhd said they will reduce their BLR and BFR to 5.95 per cent respectively from 6.5 per cent, from February 3, 2009.
 I found this site after  alot of looking. I'm not sure how up to date it is but it looks okay:
http://www.money3.com.my/MalaysiaFinancialTool/HomeLoan/LoanFinder.aspx
 I'd be interested in responses on how close one may expect to get to the base lending rate on a typical variable rate home loan. I suspect there are honeymoon rates that take the initial years rate below the base rate but these usually come with break fees.
Good Luck

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That is pretty much similar to Aussie rates!

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FYI my loan is from HSBC whose BLR has just been reduced to 5.55% p.a. I have their Homesmart deal that is BLR -1.75% for year 1, BLR -1.35% for years 2 & 3, then BLR -1.75% for remainder of loan. I can make overpayments at any time & can redeem without penalty after 3 years.

I did some research but there seems to be very little variation in mortgage deals here (cf. UK in particular) so decided to go with HSBC where I already bank, as its deal has most flexibility.

Looking at falling condo prices here in Penang, just glad I bought landed property!

regards,

John

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Thanks John B
that is very useful. I have of course heard of the initial discounts made available by banks but the ongoing discount with the right of early payment sounds like a wondeful product as compared to the normal honeymoon products offered in Oz.
Can you just expand on what they mean by "overpayment'? If I "overpaid" say 80% of the loan because I thought the currencies were in relative astrological alignment would that be allowed?
Out of interest how did you shop around? In person, phone, internet or by newspaper?
Cheers
Donohue

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Good Day

In Australia there is the www.infochoice.com or www.infochoice.com.au (both are same) and it will give a comparative listing of loans, rates and Term deposits listed by various lenders and much more. Is there anything similar for MY?

cheers

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Hi All

Just for comparison purposes, at our Malaysian Bank we got a really decent fixed rate for the first year, legals paid, free val etc and -2%BLR for the remainder of the term.

We can also use the mortgage loan like a current account, using up to the max or reducing as and when we need to, we only pay for what we borrow. I can redeem after three years, anything under I believe is a 5% penalty.

Cheers

Paul

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Re Donohue's query about 'overpayment', that means I can repay as much of the capital (the loan balance is reduced on the same day I make the payment) as I wish, even within the 3-year lock-in period of the loan (I just can't redeem it completely within the first 3 years) - this feature is particularly relevant to MM2H visa holders as many, like me, will want to use part of their FD towards paying off the mortgage after year 1.

I've just received my 'permission to withdraw' letter from Motour & will be doing just that with my RM240,000 FD, while renewing the remaining RM60,000 FD as required by the MM2H rules.

I couldn't find any comparison website for Malaysian loans so just phoned up the main banks - 1 or 2 had marginally better offers than HSBC, but not so good to tempt me away from HSBC where my bank manager did all the work to prepare the paperwork & all I had to do was sign on the dotted line.

regards,
John

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Hi All
 I have been following the comments path on various condominium developments at  www.apartment-penang.com.
 It makes interesting reading as others have pointed out before.

 Anyway the following exchange of comments has my interest as I have not seen the terms before (at least in the way they are being discussed.)

 The terms I am interested in I have highlighted in red but if anyone wants to try a "plain English" summary of the discussion I would be grateful.
Cheers
Donohue


     Maybank only give up to 90% with MRTA. Without MRTA only can borrow up to 95%. Does anyone got Maybank? Or my salesperson tell me wrongly that all other bank also the same?
     
March 18, 2009 9:49 PM KK88 said...

    Ok, I call up Maybank officer just now. They said can try 95% + MRTA but they said might be harder. LOL. May I know what happened if I need to appeal the loan and it passes 14 days? Will IJM cancel my booking???
     
March 18, 2009 11:13 PM may said...

    KK88,
    I was told by the EON bank branch manager that they can offer up to 95+5%. This is the reason i am applying loan from that bank even through few branch in pg. You can contact the branch manager, Mr Yeong by 016-4213066
     

     
March 19, 2009 12:45 AM sue said...

    hi i am SP Project Panel Banker. We are offering interest rates of BLR-2.2% for the whole tenor.

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hi,

MRTA =  morgage reducing term insurance.
whole tenor = over the whole period (tenure) of the loan.
appeal the loan = I think this means to make an appeal if the loan offer is unsatisfactory. The 14 days being the period for which the offer is open.
95% + 5% = I assume this is bank specific. An offer of 95% of the valuation plus an additional 5%.

Other members may have more experience of the terms.

regards, Scott

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Brilliant Scott