What is the Alliance Green Residential Property Financing?
This is a conventional term home loan for purchasing properties that hold a recognised green certification, specifically those certified under the Green Building Index (GBI) or other accepted green certification standards. It follows a fixed repayment schedule and is offered at a floating interest rate tied to the Standardised Base Rate (SBR).
The loan is available through Alliance Bank's developer partnerships, which currently include IJM Land, Malton, Avaland Berhad, and Eastern & Oriental Berhad (E&O). If a project you're interested in falls under these partnerships, you may be eligible to apply directly through the bank.
Are the interest rates fixed?
The interest rate is floating, based on SBR + spread and calculated on a daily rest basis. Alliance Bank offers preferential rates for this green mortgage product, meaning the spread should be lower than what you'd get on a standard home loan. The current SBR stands at 2.75% p.a., set by Bank Negara Malaysia (BNM) based on the Overnight Policy Rate (OPR).
Do bear in mind that because the rate is floating, your monthly instalment can go up or down if BNM adjusts the OPR. It's worth making sure you can manage a higher instalment should rates increase.
Any fees I should know about?
Beyond your monthly instalments, there are several fees to be aware of.
Late payment is charged at 1% per annum on the outstanding arrears amount. If your account falls into default, this can go up to 3.00% p.a. above the Prescribed Rate, so it's worth staying on top of your repayments.
For administrative requests, the following fees apply (all subject to 8% SST):
- Redemption Statement: RM25 per request (RM27 including SST)
- Letter for EPF Withdrawal (hardcopy): RM25 per request (RM27 including SST)
- Letter for EPF Withdrawal (online self-service): Free
- Advance Payment Withdrawal: RM25 per withdrawal (RM27 including SST)
- Adhoc Loan Statement: RM2 per request (free via email or branch)
- Photocopy of Security Documents: RM7 per set (RM7.56 including SST)
On top of these, you'll also need to budget for stamp duty (as per the Stamp Duty Act 1949), legal and disbursement fees (as charged by your solicitor), and a valuation fee for the property.
Can I make early repayments?
No prepayments or partial payments are allowed before the loan is fully disbursed. However, during the construction period, only interest servicing payments apply.
Once the loan is fully disbursed, you can make advance payments. Redrawing any advance payment is also available after full disbursement, at RM25 per withdrawal.
If you're considering full early settlement, contact Alliance Bank directly to understand any terms or conditions that apply.
What properties qualify?
The key requirement is that the property must be certified with the Green Building Index (GBI) or an equivalent recognised green certification. The bank has partnerships with several developers, so the easiest way to confirm eligibility is to check whether your chosen development falls under one of these collaborations:
- IJM Land
- Malton
- Avaland Berhad
- Eastern & Oriental Berhad (E&O)
That said, Alliance Bank also states "selected end financing projects", so if your preferred development holds a valid green certificate but isn't listed above, it's still worth checking with the Bank directly.
