Getting a Home Loan in Malaysia

Getting a Home Loan in Malaysia:

A Guide for Malaysian Home Buyers

Getting your own home is a dream shared by many. Whether it’s a single detached home in Petaling Jaya or a bungalow in Kuching, many Malaysians have their own idea of what the perfect home is for them. Getting a home loan helps get you closer to achieving this dream and we’ll look at the process of getting a home loan in Malaysia.

Home Loans in Malaysia

One of the first things to consider when you start the process of getting a home loan is what type of home loan to get. There’s a home loan with fixed rates and this type of home loan attracts many homebuyers because this offers stability against fluctuating financing costs.

There’s also Shariah-compliant home loans that are available in Malaysia. These home loans can be based on the concept of Musyarakah Mutanaqisah or Bay Bithaman Ajil.

With so many banks in Malaysia offering home loans, you could save time researching about the different home loan rates and features by going to comparison sites.

Keep these in mind when you start looking for a home to buy in Malaysia. Once you find your dream home, move on down to the steps below.


After negotiating with the home seller for the purchase price, home buyers usually have to pay a booking fee equivalent to 2% to 3% of the home’s price. After the home buyer signs the Sale and Purchase Agreement, the home buyer pays another 7% to 8% of the purchase price which brings the total down payment up to 10% of the purchase price. The bank will finance the remaining 90% of the property’s price.

Young adults who just joined the work force can also get help from the Malaysian Government’s My First Home Scheme (Skim Rumah Pertamaku). This program helps young adults get 100% financing for their home without the need to pay the 10% downpayment.

Sale and Purchase Agreement

After a 10% down payment has been made and the sale and purchase agreement signed, the buyer has 3 months to pay the balance or secure financing. This step in the process varies a little if you are buying a property that is still under construction or if you are buying a completed property.

Taking Advantage of Your EPF

You can withdraw money from your EPF Account II to pay for many of the fees associated with buying a home. You could use the funds from this account for down payment and to pay for monthly loan instalments.

Apply for a Home Loan

The comparison site that helped you find the best home loan could probably also help you apply for a home loan with just a few clicks. Once the banks receive your application, they can take

Other Costs to Owning Your Home

There are other expenses associated with owning a home aside from the downpayment and your monthly home loan payments. You also need to buy a Mortgage Reducing Term Assurance or Mortgage Reducing Term Takaful. These insurance products covers the cost of your home should anything happen to the home buyer before the loan’s term is completed. Other costs include the stamp duties, legal fees for the Sale and Purchase Agreement and Home Loan/ Financing Agreement.



This article is exclusively written for by The Malaysia’s leading financial comparison portal which helps consumer in finding the right financial products at the right price. Please do check our website to learn more.

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