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Advantages And Disadvantages Of Housing Loans

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4. Housing Loan Acquiring a home which a person can proudly call as their “Own House” is a life-time decision. In the recent years, the housing price in Malaysia is increasing intensely. Due to this problem, many Malaysians are lack of the ability to purchase their “Own House” and need to have more money to purchase it. This problem was become more serious after the government has implemented the Goods and Services Tax (GST) from the April of 2015. Therefore, the housing loan or mortgage loan is very crucial for the Malaysians nowadays. Home loan is a secured loan that offered against the security of a house or property which is funded by the bank’s loan. If bought with a mortgage, it is used by purchasers of real property to raise capital …show more content…

There are some features of Maybank housing loan, which including the higher loan margin which are up to 95% of the value of the house, the loan applicants also can enjoy the MRTA (Mortgage Reducing Term Assurance). The benefit of MRTA is it will eventually settle their outstanding mortgage and transfers the title deed to their family in the event of death or total and permanent disability. Besides, it also has a longer repayment period which was up to 35 years or until the age of 70. The type of property that Maybank financing is available for completed or under construction residential properties. Furthermore, the minimum age of the loan applicants is 25 until 35 years old. Compare to other banks, the minimum age of Maybank is higher and it can minimize the risk of bad debt. For example, the minimum age of the CIMB bank was only 18 years old and it is too risk lending out the money for them who are just graduated from the secondary school. It was charged RM200 for processing …show more content…

The margin of finance in Maybank is 95% while the RHB bank is 100%, so the Maybank can increase the margin of finance to 100%. In this situation, it could attract more borrowers to getting housing loan from Maybank because the margin of finance have increasing the interest rate of the Maybank is also lower than RHB bank which is only 4.45 %. But the most importantly is the banker need to check the creditworthiness of the borrower to avoid the default

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