What is the Alliance FlexSave Home Loan?
It is a semi-flexi conventional home loan that operates on a floating interest rate tied to the Standardised Base Rate (SBR) plus a spread, with interest calculated on a daily rest basis. This means interest accrues on your outstanding balance daily, so any extra payment you make works in your favour immediately.
What sets this home loan apart is its redraw facility. When you pay more than your monthly instalment, the excess is recorded as an Advance Payment, which reduces the interest charged on your loan. You can then withdraw these Advance Payments at any time (subject to a small fee), provided the loan has been fully disbursed.
This makes it a middle ground between a standard term loan (no flexibility) and a full flexi home loan (which links to a current account for instant access). You get the interest savings without having to manage a separate account structure.
What interest rate can I enjoy?
The actual spread offered to you will depend on your credit assessment. The Alliance FlexSave Home Loan is priced on a floating rate basis at SBR + spread per annum. The PDS illustrates an indicative effective lending rate of SBR + 2.25% p.a. Based on the current SBR of 2.75% p.a. (effective 15 July 2025), this translates to an effective lending rate of 5.00% p.a.
Because the rate is floating, your monthly instalment will change if the SBR moves. The SBR is set at the same level as Bank Negara Malaysia's Overnight Policy Rate (OPR). If the OPR rises, so does your instalment.
What is the margin of financing for this home loan?
You can borrow up to 90% of the property value. An additional 5% can be financed to cover credit insurance premiums (MRTA or MLTA) and/or finance entry costs such as legal fees and stamp duty. This means you may finance close to the full cost of your property purchase without needing to fund these upfront costs from savings.
Credit insurance (MRTA/MLTA/MRTT/MLTT) is optional, but the bank strongly encourages coverage. Fire insurance or takaful is mandatory for all financed properties throughout the loan tenure.
How does the redraw feature work?
The redraw feature is what sets this loan apart from a basic term loan. Here is how it works:
- Pay more than your monthly instalment at any time after full disbursement. The excess amount becomes your Advance Payment.
- The Advance Payment reduces the daily interest calculation on your loan, so the longer it stays, the more interest you save.
- When you need those funds back, submit a written request to the bank to withdraw from your Advance Payment balance. A fee of RM27 (RM25 + 8% SST) applies per withdrawal.
- Withdrawals are only available after the loan has been fully disbursed. No withdrawals are permitted during the construction or interest servicing period.
Do note that the redraw feature requires a written request to the bank, unlike a full flexi loan, where withdrawals can be made instantly via ATM or online banking. Factor in the administrative lead time if you anticipate needing quick access to funds.
What are the related fees?
- Late Payment Charges: 1% p.a. on arrears amount
- Advance Payment Withdrawal: RM27 per request (RM25 + 8% SST of RM2). Written notice is required
- Loan Redemption Statement: RM27 per request (RM25 + 8% SST of RM2)
- Letter for EPF Withdrawal: RM27 per hardcopy with additional courier charges if mailed. Free via online self-service
- Ad Hoc Loan Statement: RM2 per request. Free if sent via email or collected at the branch
- Photocopy of Security Documents: RM7 per set with additional courier charges if mailed
- Stamp Duty: As per the Stamp Duty Act 1949 (Revised 1989)
- Legal and Disbursement Fees: As charged by the solicitor
- Valuation Fee: As charged by the valuer
Am I eligible to apply?
The Alliance FlexSave Home Loan is open to both Malaysian citizens and foreigners. Applicants must be at least 21 years old, with the loan tenure capped at age 70. Both salaried employees and self-employed individuals are eligible, and you can apply as a single or joint applicant.
The loan is available for completed residential properties as well as properties under construction.
What happens if I default?
Missing payments has serious consequences beyond the late payment charge. The bank may deduct money from any deposit accounts you hold with Alliance Bank to offset your loan balance.
Continued non-payment can lead to legal action, foreclosure of your property, and a lasting impact on your credit rating. You remain liable for any shortfall if the property sale does not cover the outstanding loan amount.
Frequently Asked Questions
Can I make extra payments on this loan? Yes. Any payment above your monthly instalment (after full disbursement) is treated as an Advance Payment. This reduces the daily interest on your loan. No prepayments or partial payments are allowed before the loan is fully disbursed, except for the interest service amount during the construction period.
How is the interest on this loan calculated? Interest is calculated on a daily rest basis, meaning it accrues daily on your outstanding loan balance. If you make an Advance Payment, it reduces your outstanding balance immediately, which lowers the interest charge from that day forward.
How do I redraw my Advance Payment? Submit a written request to Alliance Bank to withdraw from your Advance Payment balance. A fee of RM27 (RM25 + 8% SST) applies per withdrawal. Withdrawals are only available after full disbursement of the loan.
What is the difference between this and the Alliance FlexLink Home Loan? Alliance FlexLink is a full flexi home loan that links to a current account, allowing instant access to prepaid funds via ATM or online banking. The FlexSave is a semi-flexi loan, in which you save on interest through Advance Payments, but redrawing funds requires a written request and incurs a fee. FlexLink offers more liquidity; FlexSave suits borrowers who want to prepay without needing instant access to their extra payments.
Is credit insurance compulsory? No. MRTA, MLTA, MRTT, and MLTT are all optional, though the bank strongly encourages coverage. Fire insurance or takaful on the property is mandatory throughout the loan tenure.
Can foreigners apply? Yes. The Alliance FlexSave Home Loan is available to both Malaysian citizens and foreigners. Standard eligibility criteria and credit assessment apply.
What if I want to settle the loan early? Speak directly to Alliance Bank to confirm the terms before making an early settlement. Call 03-2600 1800 or visit any Alliance Bank branch.
Who do I contact if I have repayment difficulties? Contact Alliance Bank's Consumer Collection Department at 03-5516 9988 or email [email protected]. You can also reach AKPK at 03-2616 7766 or akpk.org.my for free, independent financial counselling and debt restructuring assistance.
