Get your dream house with the right home loan package. Alliance Bank Conventional Home Loan, a basic housing loan for financing residential properties, whether under construction or completed.
What can I get from an Alliance Bank home loan?
You will be able to purchase your dream house as Alliance Bank can finance up to 90% of the value of your new house. Add in another 5% to your financing margin, and you can cover the MRTA and other fees, including Legal and Valuation (for completed property only).
The best part about this home loan is the flexibility to service your monthly instalments, with an option to deposit extra cash on your mortgage when you are flush, and withdraw excess money paid when your purse strings are tight.
Am I allowed to withdraw money paid into my home loan account?
Definitely. When you consistently make extra payments on top of your monthly instalment, that extra cash can be withdrawn for personal use. However, you need to meet the minimum required limit in the Advance Payment bucket before you can cash it out.
Moreover, this extra cash paid on your monthly instalment is considered an Advance Payment. This particular type of payment does not offset your interest charges and also reduces the principal loan outstanding.
Are there fees and charges applied to this home loan?
As usual, you will be bothered with the statutory government Stamp Duty fee, which is deductible from the total loan amount. Other than that, you will only need to pay the one-time set-up fee of RM200.
There are no processing and monthly maintenance fees for this housing loan.
Other fees include:
- Late Penalty Fee: Up to 1% per annum on the amount in arrears
- Withdrawal Fee for Advance Payment: RM25 for every withdrawal of excess funds in the Advance Payment for Housing Loan/Term Loan with withdrawal features
- Redemption Letter Fee: RM25 per request
- Letter for EPF Withdrawal Fee: RM25 per request, extra RM5 if you request the letter to be delivered to you
- Request for Retrieval and Photocopy of Security Documents: RM7.00 for a set of documents, extra up to RM15 if you request the documents to be delivered to you
- Ad hoc request for Loan Statement: RM2.00 per request, but no fee will be charged if the statement is sent via email or collected at the bank’s branch
- Legal and Disbursement Fee: Include solicitor fee as per the scale in the Solicitors’ Remuneration Order (SRO) and disbursement fee (fee including but not limited to registration fee, search fee and other related charges)
- Valuation Fee: For preparing the formal valuation report (applicable for completed properties only)
For more details, check out the Product Disclosure Sheet.
Do I need insurance cover?
Group Mortgage Reducing Term Assurance (MRTA) is optional but highly recommended for you to hedge the risk of losing your house due to unforeseen circumstances. Fire insurance, however, is compulsory and borne by Alliance Bank.
Why should I choose this mortgage?
- Flexibility: Repayment terms up to 35 years, with options to make an Advance Payment and withdraw extra cash anytime.
- Cost savings: No monthly maintenance fee! This is a good thing because you might not use your account every month to deposit or withdraw cash. A good way to save money that would otherwise go to the bank.
What documents do I need to prepare for this home loan application?
Property documents:
Sale and Purchase Agreement or Booking Receipts, Copy of Individual Title Deed and Property Valuation Report (if any).
Salaried employee:
- Copy of your NRIC or passport
- Latest 3-months salary slip
- Latest EPF statement
- Latest EA Form
Self-employed:
- Sole Proprietor & Partnership – Form A & D
- Private Limited – Form 24 & 49
- Latest Form B + Tax payment receipt
- Latest 6-months current account statement
Am I qualified to apply for an Alliance Bank home loan if I'm blacklisted?
Depending on your credit history with other financial institutions, because all this information (outstanding credit card, personal loan, home loan or car loan debts) will be captured in CCRIS/ CTOS (a system that collects credit information on borrowers, not blacklisting them).
Assuming you have poor credit standing due to irregular payments, the best course of action would be to break the habit and start making your payments on time to avoid future hurdles.
Alliance Bank is more likely to approve your home loan application if you can show that you are managing your personal finances, rather than accumulating more debt.
