Hong Leong Bank Berhad is a financial services company with a presence in Malaysia and Singapore, Hong Kong, Vietnam, Cambodia, and China. With these outstanding achievements, Hong Leong Bank is known as Malaysia’s fifth-largest banking group by assets, with over RM237.1 billion in assets as of 30 June 2021, and fourth-largest by market capitalisation. Because of the importance of innovation and technology in our daily lives, Hong Leong Bank uses cutting-edge digital technology to provide a variety of meaningful financial products and services that meet the needs of its customers.
A home loan is a sum of money that you apply for or borrow from a bank to assist you in purchasing your dream home. Each loan will be charged an interest rate determined by the loan amount and the repayment period. So, keep in mind that each bank will have a different interest rate, and you should do some research before applying for a home loan.
Hong Leong Bank provides 7 types of home loans:
You must be aware of the interest rates that the bank will charge you, either fixed interest rates or variable rates.
Type of loan
In Malaysia, there are 3 types of loans offered: term loan, semi loan, or flexi loan.
Knowing the lock-in period is crucial because it often occurs when there is a sudden need for full settlement, refinancing, or selling your property.
Margin of finance
You must understand your margin of finance, which is the amount of money that a bank will allow you to borrow for your loan and how much cash/ upfront you must pay for the property.
The fees include legal fees, stamp duty charges, late payment fees, early settlement fees, and others.
Type of bank
The bank you have chosen to apply for a home loan with, as different banks offer different loan amounts, terms, etc. Choose a bank where you are comfortable applying for a home loan.
*Depending on the selected home loan.
As per the Stamp Duty Act 1949 (Revised 1989).
Late payment fee
1% of the amount in arrears.
Overdraft commitment fee
1% p.a. on the unutilised overdraft balance.
Withdrawal of advance payment fee
RM50 per request.
Letter of confirmation for epf withdrawal
RM20 per account.
Security document Retrieval fee
RM2 per page.
A period during which you will be penalised if you pay off your home loan earlier than agreed. The fine ranges from 2% to 5% of the total amount.
Margin of Finance (MOF)
The amount of money that a bank will lend you for your loan determines how much cash you must pay upfront for the property.
It is the amount of money you paid to the bank in addition to the principal amount.
An estimate of the property’s worth and the stamp duty is calculated based on its value.
The base rate is the interest rate charged by Bank Negara Malaysia to commercial banks for loans.
Base Lending Rates (BLR)
A rate set by each bank based on the cost of borrowing the money to be lent to borrowers.
Repaying an existing loan and replacing it with a new one with new terms and conditions.