Malaysian Property Partners regularly reviews many of the best mortgage deals offered by major Malaysian banks. the mortgage market is becoming increasingly competitive and local banks have a range of promotions and special offers available. Typical deals are set out below.

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Maybank
Malayan Banking Bhd (Maybank) has launched a promotional package under its MaxiHome scheme. The loan offers a single-tier interest rate for the entire loan period, pegged to its current BLR of 6.25 per cent. Applicable for both Non-Zero Entry Cost and Zero-Entry Cost schemes, the package offers an interest rate of BLR minus 0.7 per cent for the former and BLR minus 0.4 per cent for the latter.

Borrowers can enjoy a margin of financing of up to 95 per cent - inclusive of Mortgage Reducing Term Assurance (MRTA) - on a maximum loan period of 40 years.

The promotion is valid for properties worth at least RM100,000 and are available for projects where Maybank has provided end-financing facilities. Borrowers are not required to pay anything during the construction period as the monthly progressive interest will be capitalised into the loan amount, with payments starting once the house is completed.

MaxiHome customers can also opt for a “bullet payment” at the end of loan tenure in order to lower monthly instalments. This gives them the option to repay up to 50 per cent of the principal loan amount and settle the balance in a lump sum payment at the end of the loan period. Borrowers can also make use of an overdraft facility at a rate of BLR plus one per cent for the first RM100,000 and BLR plus 0.75 per cent for amounts above this.

RHB Bank
RHB Bank Bhd is offering four schemes to finance completed properties under the RHB My1 Home Loan. The first offers a rate equal to BLR for the first year, followed by BLR minus one per cent for the second year and thereafter, BLR plus 0.1 per cent.

The second is a fixed home loan offering a rate of BLR minus 0.99 per cent for the whole tenure, while the third scheme gives borrowers loans at a rate of BLR minus one per cent for the first five years, followed by BLR minus 0.1 per cent for the remaining period. RHB’s last scheme offers a rate of BLR minus 0.75 per cent for the first three years and for the remaining tenure, at BLR minus 1.75 per cent.

Borrowers can also enjoy a margin of financing of up to 95 per cent (inclusive of MRTA) and a maximum loan period of 40 years. The current BLR is 6.25 per cent.

Bumiputera-Commerce Bank
Bumiputera-Commerce Bank Bhd (BCB) borrowers can enjoy up to 100 per cent financing, inclusive of MRTA, and a maximum loan period of 30 years. With the current BLR at 6.25 per cent, under the fixed conventional scheme applicable for loans exceeding RM100,000, borrowers can get an interest rate of BLR minus 0.25 per cent for the whole tenure if they bear the legal fee. If the bank pays, then it is adjusted to a rate equal to BLR.

For the former, borrowers buying landed properties can enjoy a profit rate of 1.68 per cent for the first year, followed by a four per cent rate for the second. Depending on the loan tenure, borrowers will be charged 6.5 per cent from the third to 10th years and either a rate of 6.85 per cent to the 20th year, or 7.35 per cent to the 30th year. For stratified units, the rate for the first two years is the same as that for landed properties, but in the third year, a rate of 6.5 per cent is offered.

As with landed units, stratified properties will be financed at a rate of 6.5 per cent from the fourth to the 10th years, and either 6.85 per cent for a period up to 20 years or 7.35 per cent for up to 30 years. Those buying completed properties can expect a profit rate of two per cent for the first year, followed by 4.5 per cent for the second year. Thereafter, they can enjoy the same rates offered for landed properties that are under construction.

HSBC Bank
HSBC Bank Malaysia Bhd (HSBC) has a conventional Home Smart package. With it, borrowers of completed properties costing upwards of RM100,000 will be charged BLR minus 0.65 per cent in the first year, followed by a spread of 0.65 per cent for the second to fifth years.

From the sixth to the 10th years, the rate will be BLR minus 0.25 per cent and from the 11th to 15th years, the rate will be equal to BLR. From the 16th to 20th years, the rate will be BLR minus 0.5 per cent and thereafter, BLR minus one per cent. For units under-construction, HSBC offers BLR minus three per cent for the first year, followed by a spread of 0.2 per cent from the second year to fifth years, after which it will be the same as that for completed properties.

Borrowers can enjoy a margin of financing of up to 90 per cent (excluding MRTA) and a maximum loan tenure of 30 years. Its current BLR is 6.25 per cent.

OCBC Bank
OCBC Bank Bhd has three packages for units under construction. The first offers up to 80 per cent financing at zero per cent interest for the first year; while the second provides a 90 per cent margin of financing at a one per cent interest for the first year.

For both packages, the second year’s rate will be BLR minus one per cent, followed by BLR plus 0.1 per cent from the third to 15th years and thereafter, a rate equal to the BLR.

The third package comes at a fixed rate of 5.75 per cent for the first year, after which it is set at BLR plus 0.1 per cent until the 15th year. Thereafter, it will be a rate equal to the BLR. For completed properties, borrowers can opt to pay the legal fees themselves or get the bank to do so.

Taking the first option comes with two packages, one at an interest rate of 2.88 and 5.25 per cent for the first and second year respectively. From the third year to the fifth years, it will be a spread of 0.1 per cent, followed by a rate equal to the BLR for the remaining period. The second features a rate of 5.99 per cent for the first five years, followed by BLR plus 0.1 per cent for the sixth to 15th years and thereafter, a rate equal to the BLR.

Those wanting the bank to pay the legal fees have two choices: The first offers a rate of 4.88 per cent for the first year with the second year’s rate at 5.25 per cent. From the third to the 15th years, interest is fixed at BLR plus 0.1 per cent and thereafter, a rate equal to BLR. The second package comes at 6.28 per cent for the first five years, followed by BLR plus 0.1 per cent from the sixth to the 15th years. Thereafter, it will be a rate equal to the BLR. Borrowers can enjoy a margin of financing of up to 95 per cent, MRTA included, and a maximum loan period of 30 years. The current BLR is 6.25 per cent.

Bank of Nova Scotia
The Bank of Nova Scotia Bhd (Scotiabank) is offering the Scotia Homeloan, available for properties under construction as well as completed.  For those under construction, the interest rate is 1.5 per cent for the first year and BLR minus one per cent for the second. For the third year the interest will be at the prevailing BLR.

From the fourth to 10th years, the rate will be BLR plus 0.2 per cent, followed by a spread of 0.15 per cent from the 11th to 20th years. Thereafter, the rate for the remaining period will be at the prevailing BLR.

For completed units, borrowers can enjoy the first-year interest rate at 2.8 per cent, while for the second and third years it will be equal to the BLR. Between the fourth and 14th years, it will be BLR plus 0.2 per cent, followed by BLR plus 0.15 per cent thereafter. Borrowers can also enjoy a margin of financing of up to 90 per cent, excluding MRTA, and a maximum loan period of 30 years. The current BLR is at 6.25 per cent.