What Is A Home Loan Or Housing Loan?
Are you in the market to purchase a home anytime soon? If you are then the last thing you want to do is limit your financing choices. Applying for a home loan or what is sometimes referred to as a housing loan is the best way to get into the house you want. Before you can be serious about this form of financing though you have to be educated on exactly what a home loan or housing loan is. That is what we’re going to walk you through here.
The basics of what a home loan/housing loan is
Understand that for the majority of people purchasing a home is not a short term investment for them. It’s a long term investment, and it’s an opportunity that can be tough to access for a lot of people. Financing helps to provide that access.
If you’re considering buying a home, but don’t have enough capital on hand, then this is where a home loan/housing loan can be a real benefit.
There are quite a few banks and other lending institutions in Malaysia that can provide you with different home loan options. All you need to do is carefully consider your options, look into whether or not you’d be eligible and then apply.
There are three primary forms of home loans you can get in Malaysia. The first would be a term loan, the second would be what is called a semi-flexi-loan and the third type would be what is called a full flexible loan. A term loan is beneficial because it usually has a fixed rate of interest as well as loan tenure.
The issue with this form of loan is that it tends to not be too flexible as far as paying more than whatever your monthly amount is or lowering interest. If you have a fully flexible loan though, then you can pay more money on what you owe whenever you want and lower your overall interest. Semi-flexible loans enable you to get the dual benefits of term loans and fully flexible loans.
What you’ll need to qualify for a housing loan
Prequalifying is simple to do as long as you understand what you need and why you need it. A bank is going to want to look over the following:
- What your assets are at the current moment
- Your overall level of debt
- Your current income
- Credit worthiness/references
With this information it’s going to enable a bank to get an idea of the mortgage amount best suited to you and it will make it easier for you to discuss exactly what you need individually with the banking institution you’re considering going with.
What are some of the primary benefits of home loans /housing loans?
- You can get lending for a home/property that’s entirely built or currently being constructed. You can even get financing for a shophouse.
- The majority of banks you can get financing with will enable you to take out excess payments any time you need through various means such as ATM machines or even checks.
- There are flexible options available in order to suit your lifestyle.
- Loans are available for those who reside in Malaysia as well as non-residents.
- You can get a home loan in order to purchase a home to live in or as a means of investment.
- The loans you take out are secured and the home/property being purchased is the collateral.
- You can apply as one person or with someone else.
No matter what you’re needs are or if you want to purchase a home for your own use, as an investment or some other function there are loans available to help you with financing.