Most buyers use a bank loan for part of the price. This guide explains what banks typically look at and how to prepare your paperwork. Lending rules, rates and margins differ by bank and change over time, so ask your bank for its current requirements.
1. Documents banks commonly ask for
- Identity card or passport.
- Recent payslips and, if you are employed, an employment letter or EPF statement.
- Recent bank statements.
- For self-employed applicants, business registration and tax or income records.
- The offer or sale and purchase documents for the property.
2. What affects how much you can borrow
- Your income, and how stable it is.
- Your existing monthly commitments, such as car loans, credit cards and other loans.
- Your credit record.
- The property itself: its value, age and type.
- The loan period and the type of interest rate.
3. How to prepare
- Settle or reduce small debts and avoid new commitments before applying.
- Pay existing instalments on time.
- Keep your documents together and up to date.
- Speak to more than one bank, because their offers can differ.
4. Foreign buyers
Lending to foreign buyers can follow different rules from lending to Malaysians, and some banks finance a smaller share of the price. Ask the bank directly, and see our guide for foreign buyers for the general picture.
Frequently asked questions
How much can I borrow for a home loan in Malaysia?
It depends on your income, existing commitments, credit record and the property. Only the bank can give you a figure after assessing your documents.
Should I get loan approval before I view homes?
Many buyers ask a bank for an indication of what they can borrow first, so they search within a realistic budget. It is not a final approval.