Intro
In Malaysia the banks have created mortgages especially for
foreign investors making it probably the best mortgage market for
non-residential foreign buyers in the world. The mortgage process
is straightforward and banks are super efficient often processing
mortgage offers within a week of their application. There are not
many countries that can produce the levels of service that Malaysia
can. Even though it is fairly straightforward we would still
recommend the use of a broker, as we do with all international
mortgages, as their systems are often very different to the ones
that we use.
Availability
The banks in Malaysia don't credit score applicants so following
an assessment of your income and expenditures, they make a judgment
on whether or not they will offer you a mortgage. You can expect to
be offered loans of up to 80% LTV but this does depend on the type
of property it relates to and which developer you are purchasing
through.
Cost
Interest rates are normally linked to the Malaysian base lending
rate and a discount is often offered alongside this. The bank
lending rate is currently around 6.75%. Banks quite often give a
cheap rate during the first year which can be as low as 1.88% on an
interest only basis. After this period it will return to being a
capital and interest repayment mortgage but with terms of up to 30
years, investors have an ideal way of gearing their
investments.
Application Process
Banks will typically ask for 3 months wage slips, 3 bank
statements and a P60 from employed applicants although this does
vary from bank to bank. With banks doing all they can to drive
foreign investment into the country, Malaysia is probably one of
the best places to invest in Asia if you need a mortgage.
Mortgage Finance from Frontiers Financial Services
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