Public Bank Home Loan

About Public Bank

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.

What is a home loan?

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).

What type of home loan does Public Bank offer?

Public Bank provides 2 types of home loans:

• 5 HOME Plan
• MORE Plan

What should I know before applying for a home loan?

• Interest rates

  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.

• Lock-in period

  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.

• Fees

  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.

Who is eligible to apply for Public Bank home loans?

• Between 21 to 70 years old
• Minimum annual income of RM24,000
• Salaried employee and self-employed

Why should I choose Public Bank home loans?

• 5 HOME Plan
  • The best aspect about this home loan is that you may lower your monthly payments
  • The interest is computed daily from the remaining loan balance if you add more money into your loan account
  • Aside from that, the Public Bank 5 Home Plan includes a free credit card with no annual cost. Suppose you have an excellent credit history and an established relationship with Public Bank.
  • You may also apply for a more significant margin zero moving cost package up to 100% financing, including MRTA and legal expenses

• MORE Plan
  • You may select between two good refinancing home loan packages: a term loan with an overdraft or a house loan with an interest calculation tied to a current account
  • You can better manage your money and have the freedom to access cash whenever you want with an overdraft if you choose an equal monthly payment plan. You may borrow money from your account whenever you need it with an overdraft, up to a specific limit
  • The HomeSave package allows you to link your home loan account to your current account. When your current account balance is higher, you can cut interest costs quicker and save more money
  • You may also withdraw any amount of money from your home loan account for a cost of RM50 per transaction. Prepayment and cash withdrawal services, on the other hand, are only available if your house loan is more than RM100,000

Who should I contact for further information about Public Bank home loans?

For more information or assistance with Public Bank home loans, you can

• Contact them at 1-800-22-5555
• Email customerservice@publicbank.com.my
• Visit Public Bank branches near you

What are the documents required for Public Bank home loans?

• • 5 HOME Plan

• • • Salaried employee
      • Application form
      • Copy of NRIC (front and back)/ passport (front page)
      • Copy of Sale & Purchase Agreement/ booking receipt/ Letter of Offer from the developer
      • Latest 3/ 6-month salary slip, or
      • Latest EA Form, or
      • EPF statement, or
      • Latest tax returns and tax receipts, or
      • Employment letter, or
      • Latest 3-month bank statement for the salary account

• • Self-employed
    • Application form
    • Copy of NRIC (front and back)/ passport (front page)
    • Copy of Sale & Purchase Agreement/ booking receipt/ Letter of Offer from the developer
    • Latest 6-month bank statement, or
    • Latest 1-year tax return and tax receipt

• • MORE Plan

• • • Salaried employee
      • Application form
      • Copy of NRIC (front and back)
      • Copy of passport/ Visa/ Work Permit/ employment pass (non-Malaysian)
      • Copy of Sale & Purchase Agreement/ booking receipts/ Letter of Offer from the developer
      • Latest 3/ 6-month salary slip
      • Latest EA Form
      • EPF statement, or
      • Latest tax returns and tax receipts, or
      • Employment letter, or
      • Latest 3-month bank statement for the salary account

• • Self-employed
    • Application form
    • Copy of NRIC (front and back)
    • Copy of passport/ Visa/ Work Permit/ employment pass (non-Malaysian)
    • Copy of Sale & Purchase Agreement/ booking receipts/ Letter of Offer from the developer
    • Business Registration Certificate: Form 24 and 49
    • Latest 6-month bank statement
    • Latest 1-year tax return and tax receipt

What are the fees included in Public Bank home loans?

• Stamp duty

  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

• Withdrawal fee

  RM50

• Early settlement fee

  2% to 3% within a 3-year retention period, depending on loan size

What are the common terms of home loan?

• Lock-in period

  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.

• Interest rates

  It is the amount of money you paid to the bank in addition to the principal amount.

• Valuation

  An estimate of the property’s worth and the stamp duty is calculated based on its value.

• Base rate

  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.

• Refinancing

  Repaying an existing loan and replacing it with a new one with new terms and conditions.