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Malaysia – Property Financing

Local Banks and Mortgages for Foreign Nationals in Malaysia

Malaysia is a popular destination for both locals and foreign nationals looking to invest in real estate. If you’re a foreign national interested in purchasing property in Malaysia, you may wonder if local banks or other lenders are willing to issue mortgages to non-residents. Fortunately, Malaysia has a thriving property market that is accessible to foreigners, and several local lenders are willing to provide mortgage solutions.

Malayan Banking Berhad (Maybank) is one of the leading local banks in Malaysia that offers mortgages to foreign nationals. Maybank provides a range of financing options tailored to different property types and financial profiles. They have a dedicated team to assist non-resident buyers in navigating the mortgage application process.

CIMB Bank is another prominent financial institution in Malaysia that provides mortgage services to foreign nationals. CIMB offers various mortgage products with competitive interest rates. Their user-friendly application process and support for non-residents make them a popular choice among foreign property buyers.

Hong Leong Bank is known for its flexibility in offering mortgages to foreign nationals as well. They have a strong presence in the Malaysian property market and provide financing solutions that cater to the needs of non-residents. Hong Leong Bank’s experienced team can guide you through the mortgage application process.

Minimum Deposit Requirements for Property Purchase

When purchasing property in Malaysia, one of the essential factors to consider is the minimum deposit requirement. The deposit, also known as the down payment, is a significant upfront payment that buyers must make to secure their property purchase. The specific amount required can vary depending on several factors, including the property’s value, the lender’s policies, and the type of property you are buying.

Typically, local banks and lenders in Malaysia require a minimum deposit of around 10% to 30% of the property’s purchase price. However, this percentage can vary, and it is crucial to check with your chosen lender for the most up-to-date information. Keep in mind that the deposit serves as a commitment to the property purchase and provides security for the lender.

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It’s worth noting that some developers in Malaysia offer attractive financing packages with lower deposit requirements for specific property developments or projects. These packages can be appealing to both local and foreign buyers, so it’s advisable to explore different options and compare deposit requirements to find the best fit for your financial situation.

Responsibility for Outstanding Debts on the Property

When you become a property owner in Malaysia, whether you are a local or a foreign national, you take on certain responsibilities, including the potential obligation to address outstanding debts associated with the property. Understanding these responsibilities is crucial to a smooth property transaction.

In Malaysia, property-related debts, such as property taxes, utility bills, or unpaid loans secured against the property, are typically tied to the property itself rather than the previous owner. When you purchase a property, you may inherit these existing financial obligations.

Before the sale is finalized, a legal process takes place to ensure that any outstanding debts related to the property are settled by the seller. The notary or legal representatives involved in the transaction will conduct thorough checks to identify and clear any existing financial liabilities. This process ensures that you take ownership of the property without the burden of unresolved debts.

It is crucial to engage with experienced legal professionals and seek advice from your lender to ensure that all necessary steps are taken to protect your interests during the property purchase in Malaysia. A well-informed and diligent approach can help you avoid any unexpected financial obligations.

Additional Considerations for Foreign Nationals

As a foreign national looking to invest in Malaysian real estate, there are some additional considerations and steps to keep in mind:

  • Foreign Ownership Restrictions: Malaysia has specific rules and regulations regarding foreign ownership of property. Make sure you understand these restrictions and eligibility criteria for property ownership as a non-resident.
  • Tax Implications: Consult with a tax advisor to understand the tax implications of property ownership in Malaysia, including property taxes, capital gains taxes, and any other applicable taxes.
  • Legal Assistance: Engage a qualified attorney or notary who specializes in real estate transactions involving foreign nationals. They can provide valuable guidance and ensure that all legal requirements are met.
  • Exchange Rates: If you are using foreign currency to make your property purchase, be aware of exchange rates and currency conversion fees, as they can impact the overall cost of your investment.

By being well-informed, seeking professional guidance, and working with reputable lenders, foreign nationals can successfully navigate the process of buying property in Malaysia and make sound investments in the country’s vibrant real estate market.

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