Recommendation of Malaysia Home Loan Packages Offered by All Banks in Malaysia :: Money3.com.my

Longest Loan Tenure

Ability to redraw all that you have paid into your loan. Revolving credit limit increases as your property appreciates.

Suitable For: Older borrowers. Those with insufficient retirement savings.
Advantages: Revolving credit that increases as home value increases. Re-use all sums paid into loan.
Disadvantages: Penalty for prepayment fees.

Zero Payment (During Construction)

Allow you to pay nothing during the whole contruction period.

Suitable For: Construction property. Borrowers who are low on deposits but still want that dream house. Also those who may have money in high interest yielding investments and prefer not to cash-out to raise the deposit for the new house.
Advantages: Pay nothing during construction period.
Disadvantages:

Fully Revolving Credit Loan

Fully revolving credit term loan. Prepay and redraw as much as you like. Free personal accident insurance.

Suitable For: Any home buyer.
Advantages: Flexible repayment. Full revolving term loan
Disadvantages: Slightly higher rates.

100% Margin of Finance (SPA Price)

Enjoy up to 100% of loan financing.

Suitable For: Suitable for those who are strapped for cash at the beginning of the home loan.
Advantages: 0 or low outlay from your own
Disadvantages: A high margin, which is rarely disclosed, can result in a substantially higher interest rate than you were expecting.

Deposit Linked Flexi Home Loan

A home loan and Checking Account combined into 1. The more money you have in deposit, the lower interest you pay on the loan. Allows pre-payments and withdrawals of pre-paid amounts anytime. Suits business / self-employed people.

Suitable For: Those who sometimes have excess cash and who are cash-strapped at other times.
Advantages: You can achieve cost savings if you have a windfall, while having the flexibility to redraw on the money should you need it.
Disadvantages: Require discipline in managing funds. Interest rates may be higher than loans without such features.

Fixed Rate Loan

Enjoy a peace of mind knowing that your repayment will never fluctuate with the economy. Enjoy the lowest fixed rate in history.

Suitable For: Anyone who values certainty in his monthly payments.
Advantages: Ease in budgeting and assurance that you won't be paying more, allows you to hedge against future interest-rate hikes.
Disadvantages: For insurance lenders, insurance is compulsory.

Islamic Home Financing

Syariah compliant Home Financings.

Suitable For: Those wishing to have syariah compliant financing.
Advantages: "Halal" and rates are fixed. No penalties charged
Disadvantages: May appear more expensive, however, some lenders offer "rabates".

Floating Rate Loan

Packages with rates that fluctuate with Base Lending Rate or BLR less a spread.

Suitable For: Any home buyer
Advantages: Usually have a low interest rate. Repayments are also lower.
Disadvantages: May not offer the features or flexibility of other home loans. Plus installments will increase as rates increase.

Investors' Home Loan / Low or 0 Lock In

Buy and sell, then turn in a quick profit. Check out hoome loans with zero or low 'Lock-In' periods. These home loans allows you to sell the property and pay off the loan early without penalties.

Suitable For: Suitable for those who buy and sell, then turn in a quick profit.
Advantages: Allows you to sell the property and pay off the home loan early without penalties.
Disadvantages: This home loan normally is higher in interest rates.

Low Deposit Loans

Low on deposit? Check out home loan that offer high Margin Of Finance or interest servicing only. May benefit 1st Time Owners.

Suitable For: Suitable for those who are strapped for cash at the beginning of the home loan.
Advantages: You may be able to take on a bigger home loan, on the assumption that your income will grow.
Disadvantages: Payments usually increase after few years. May revert to standard.

Hybrid Loans (Fixed & Floating)

A home loan to enjoy fixed rates for a few years then revert to floating rates subsequently.

Suitable For: Those who value certainty for a fixed period or think that interest rates may drop in the medium term.
Advantages: This type of home loan provide certainty for a fixed period of time.
Disadvantages: Be prepared for a jump in installments when the rate reverts to floating status, especially if interest rates creep up during the fixed-rate period.