A home loan or mortgage loan in Malaysia is a loan taken out from a bank or financial institution to help you purchase property. Home loans in Malaysia use the property in question as collateral. While you would think that the property’s title would fall under your name since you’re the purchaser, that isn’t the case until you pay off all your monthly repayments in full.
In the meantime, the bank holds the property titles. That means it’s within their means to repossess the property if worst comes to worst. Home loans in Malaysia can either come with a fixed or variable interest rate.
Fixed interest rate
- Refers to a set percentage that doesn’t change throughout the duration of your loan.
Variable interest rate
- Refers to a percentage that’s determined by the Base Rate (BR), whenever the BLR goes up or down, this type of interest rate will follow suit.