Public Bank Berhad is a Malaysian bank situated in Kuala Lumpur that provides financial services in the Asia-Pacific area. Teh Hong Piow, formerly the manager of Malayan Banking, formed the bank in 1966. Public Bank is Malaysia’s largest bank in terms of shareholder money, second in terms of market capitalisation (after Maybank), and third in terms of total assets (behind Maybank and CIMB). Personal banking, commercial banking, Islamic banking, investment banking, share broking, trustee services, nominee services, sale and management of unit trust funds, bancassurance, and general insurance products are among the financial products and services offered by Public Bank.
With home loans, you can borrow a sum of money to purchase your new house. The interest rates will depend on the type and term that suits the borrower (you) and the lender (bank).
Public Bank provides 2 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.
For more information or assistance with Public Bank home loans, you can
As per the Stamp Duty Act 1949 (Revised 1989)
Late payment fee
1% of the outstanding amount
Redemption letter fee
RM50 for each request
Letter for EPF withdrawal fee
RM20 for each request
Early settlement fee
2% to 3% within a 3-year retention period, depending on loan size
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.