Home Loan Application Process
The home loan application process can be intimidating, but this doesn’t mean it has to be. In the Malaysian market the process is about the same overall as it would be anywhere else, with differences coming only due to the nature of the loan, who’s applying and whether or not they’re a resident or foreigner.
What exactly is the home loan application process?
The first step you need to take is to determine whether you want to apply online or in person. Applying online can be easier, but when complications come up you might not be able to resolve them through the online option.
Besides from having all your personal information ready, the main focus would be the documents you’ll need to provide. These documents are going to range based on several factors. Here are the main ones:
- Whether or not you’re a salaried employee or an applicant that would qualify as being self employed
- If you’re applying and you would qualify as a company or some other business entity
- If you’re a Malaysian resident, but you’re working in another country whether it be for a company or self-employed.
- If you’re a foreigner working in Malaysia whether you be salaried or self-employed
The list of documents required in each case is different and for some can be quite extensive. We’ve provided the basic list for people who would qualify as being salaried or self-employed living in Malaysia.
- Valid copy NRIC or Malaysian Identity Card aka MyKad (both front and back sides)
- Booking receipt for the property (1 draft)
- Vendor Sale and Purchase Agreement or title copy or new Sale and Purchase Agreement
- A copy of the land title
- Latest salary slips for 3 months (for a basic salary earner)
- Latest salary slips for 6 months (for basic salary plus commission earner)
- Latest bank statements for 3-6 months (for self-employed applicant)
- Latest EA Form or employment letter from the employee
- Latest Form B or BE with an acknowledged payment receipt (for income tax details)
- Latest EPF statement or KWSP statement
- Education certificates (if requested and as applicable)
- Fixed deposit statement (for credit assessment) (if requested)
- Any other document as requested by the bank or finance institute
- Fixed deposit statement (for credit assessment) (if requested) (for self-employed applicant)
How can you be sure that you’re going to be eligible to apply for a home loan?
The eligibility process is easy to understand as it requires only basics. Here’s a short list of them:
- You have to be a native Malaysia or have status that would put you under the permanent resident designation in order to apply for a home loan.
- If you’re not a native, but a foreigner, then you can still apply. You’ll need to be sure to provide needed identification as well as proof of income that the bank would request from you.
- You’ll need to be at least 18 years of age in order to qualify to apply for a home loan in Malaysia.
- You’ll need to make sure you don’t exceed a certain age at the time your home loan would reach maturity due to loan tenure restrictions. 70-75 years of age is the maximum age you should be at the time of loan maturity.
- You’ll need to make sure you meet the income criteria of the bank you’re going through. Income requirements are going to vary based on the type of loan you’re trying to get and the amount.
- You’ll want to make sure you’ve taken measures to look into your credit history in order to ensure it’s good. Good credit is going to mean not only a higher chance of approval, but faster approval.
What if you’re a different type of buyer such as if you’re applying jointly or as an organization?
The application process might differ depending on the nature of who is applying, but this would only be in terms of what requirements had to be met and the different documents required. Some documents might be harder to obtain than others and therefore this might delay how long it takes for an application to get approved.
No matter who is applying for a home loan in Malaysia, the application process is going to require verifiable information and proof of certain critical elements as requested. Besides from this the application process doesn’t differ very much. Speaking with a representative at the bank you plan on going through or are hoping to go through would help you to know for sure.