Types of Home Loans in Malaysia
Normally what people think when comes to “Home Loans” are go to bank apply loans for purchasing property. However, that is not the correct. Nowadays, a lot of banks provide various type of home loans for targeted customers and specify purpose. Some of these loans are: (via bbazzar)
🏠 Regular Home loans
The regular home loan is the one where you can borrow money to either finance the construction of a new house or to purchase a plot of vacant land. These loans can also be conventional in that, they come with interest rates and do not follow the rules of Islamic banking.
Targeted Customers: All Malaysian
🏠 Home Loans for Expatriates
Home loans can also be extended to those who are working in the country on a valid work visa. These loans can be tailored especially to suit the needs of the expatriates and may not be made available to residents of the country. These loans can also cover those who are not working in the country but stay for extended periods of time and also those who are citizens of Malaysia but have becomes permanent residents in other countries.
Targeted Customers: Permanent Resident, Outsourcing Employee
🏠 Islamic Home Loans
Islamic home loans are those that follow the rules of Islamic banking. There is no interest charged with these loans. They tend to charge a profit rate which is paid every month along with the monthly instalments. These loans can also come in the form of hire purchase where the bank buys the property and gives it to you on leases till the loan is paid back.
Targeted Customers: Islamic Banking Users
🏠 Home loans for Furnishing
Not all home loans are meant for the purchase of property. Sometimes banks will provide home loans that can be used to furnish a house or to get work done in a property that has already been constructed. The amounts sanctioned for such loans may be lesser than that sanctioned for other home loans.
Targeted Customers: Refurnish Home Applicants
🏠 Home Loans for Approved Projects
At times banks can have certain construction projects that are on their approved list for loans. Customers of the bank will be able to take loans to purchase property in these projects but they may only get such funding if the property has passed a certain percentage of construction. This rule however may change from one bank to another.
Targeted Customers: Project Investors