Best Home Loan Interest Rate Malaysia: Bank Gives Lowest & Highest Malaysia House Financing in 2024
The interest rate is a charge implemented by the banking institution on the value of the loan made by the borrower. It is charged or usually taken as a percentage above or below the base lending rate (BLR).
For example, if the current BLR is 6%, the interest rate is above the “BLR – 2%,” therefore the loan will be 4%. This BLR rate is determined by the bank before it charges the amount of the loan to be paid by the borrower.
It covers the operating costs of the bank account and is usually the same between the major banks. The BLR is greatly influenced by the overnight policy rate (OPR) set by the National Bank, which is coordinated with all banking institutions.
Therefore, every loan borrower must know the interest rate for housing loan in the first place before applying for it so that it does not burden them in the future.
Best Home Loan Interest Rate Malaysia 2024 by Bank
Best house loan interest rate Malaysia vary depending on the respective banking institutions.
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Before applying for a home loan, borrowers can compare the house loan rate malaysia charged to them to avoid the high monthly payment of the loan.
Here are the interest rates of the banking institutions in Malaysia;
| BANKS | INTEREST RATE (%) |
|---|---|
| Maybank | 2.88 |
| Bank Rakyat | 3.18 |
| Public Bank | 3.10 |
| Cimb Bank | 3.80 |
| Ambank | 3.25 |
| Bank Simpanan Nasional | 3.10 |
| RHB Bank | 3.60 |
| Allianz Bank | 3.51 |
| Hong Leong Bank | 4.75 |
| Citibank | 3.20 |
| Affin Bank | 3.51 |
| Bank Islam | 3.32 |
| HSBC Bank | 3.74 |
| Standard Chartered | 4.50 |
| Bank of China | 2.85 |
| OCBC Bank | 3.45 |
| MBSB Bank | 3.10 |
| UOB Bank | 3.24 |
| Bank Muamalat | 3.86 |
Minimum Income To Buy RM200K, RM300K, RM400K, RM500K House In Malaysia
Individuals who are interested in earning a house need to know their capabilities to repay the loans. These capabilities depend on the borrowers’ monthly income.
Below are the minimum incomes that need to be earned by a borrower if they wish to apply for a loan in Malaysia within 30 years of loan tenure;
| HOUSE PRICE (RM) | MINIMUM MONTHLY INCOME (RM) |
| 200,000 | 3,000 |
| 300,000 | 3,500 |
| 400,000 | 5,000 |
| 500,000 | 6,000 |
Which Bank Gives Lowest Housing Loan Rate Malaysia
Each bank offers a different interest rate according to its own bank policy.
Maybank Berhad is one of the banks offering the lowest interest rate, up to 2.88%.
Applications for the loan of this house can be submitted via https://www.maybank2u.com.my
Maximum Age For Home Loan in Malaysia
The age of the borrower is one of the eligibility conditions that will be taken into account before a loan applicant applies for the loan.
The maximum age limit for a borrower who is interested in applying for a home loan is 70 years old.
What Is The Best Age To Take Home Loan in Malaysia
The best age for a person to apply for a loan is in their early thirties, i.e., between the ages of 30 and 35.
This is because at the age of their early thirties, a person is at the peak of their career, has a stable income, and can manage their commitments well.
Thus, the early thirties are the best age to apply for and own a home.
Which Bank Gives Highest Loan Interest Rate in Malaysia
Hong Leong Bank is one of the banks that offers housing loans malaysia with high interest rates. The interest rate charged is 4.75%. Borrowers have to pay their monthly loan financing at a high cost due to the interest rate imposed on them. Therefore, borrowers need to make a wise calculation and comparison between all the bank institutions in Malaysia before applying for this bank loan.
How Can I Lower My Housing Interest Rate Malaysia
There are many ways to reduce the interest rate on a home loan that a borrower has to pay on a monthly basis.
It’s important to ensure that borrowers don’t fail to make monthly payments without delay.
This is because failure to pay bank loans regularly on a monthly basis can affect and burden borrowers with debt. Here is one of the ways to reduce the housing loan interest rate;
1. Improve Your Credit Score
Repayment loan history, financial habits, and creditworthiness have an impact on a borrower’s credit score.
Therefore, borrowers need to improve their credit score by making the repayment of their loans on time as scheduled each month and avoiding any arrears.
Borrowers should make sure their credit scores are high because it indicates that the credit risk is low.
Indirectly, it opens up a huge opportunity for the borrower to pass their loan application.
2. Choose The Right Loan Tenure
A short period of tenured loans can affect the malaysia housing loan interest rate. The borrower must reduce the tenure of the loan in order to gain a lower interest rate.
A short loan tenure will raise the monthly loan repayment at a low interest rate.
This is because the longer the loan tenure, the higher the cost of the loan to be paid by the borrower.
However, borrowers should also consider the ability to pay off their loan if they choose a short-term loan.
3. Negotiate With Your Lender
In order to reduce the interest rate on the loan, the borrower is required to negotiate with the lender, which is the bank institution.
It’s important because, with negotiation, borrowers can identify and know the amount of their loan repayment, the duration of the loan, the interest rate charged, and more.
This negotiation method can help reduce this interest rate so that it fits the borrower’s finances.
4. Make A Higher Down Payment
This interest rate can be reduced by paying a high down payment.
High down payments can reduce the amount of loans. Indirectly, a small amount of loans will be charged at a low interest rate compared to a large amount.
Therefore, a high down payment can reduce the borrower’s loan payments on a monthly basis because the amount of the loan after the down payment deduction is only will be charged interest.
5. Refinance
Refinancing is a process in which borrowers exchange existing housing loans for new ones.
It aims to enable the borrower to enjoy a better loan interest rate and reduce the amount of their monthly repayment.
It is the most preferred alternative for borrowers to improve cash flow so that their loans are subject to low interest rates.
Generally speaking, this refinancing offers many benefits to borrowers in order to promote good financial management.
6. Choose The Right Bank To Find Interest Rate For Housing Loan
Every banking institution in Malaysia offers a housing loan scheme to their clients.
However, the eligibility of this loan application is different according to the banking institutions.
Therefore, borrowers should choose the right banking institution by looking at the terms and conditions offered for housing loans with low interest rate before they enter into a loan agreement so that the loan made by them fits with their capabilities to repay the loan.