Can Malaysians apply for the Bank of China Housing Loan?
Yes. Bank of China has been in Malaysia since 2001, with many branches all over the country offering financial products for locals, permanent residents and Chinese nationals alike.
This housing loan from Bank of China is a no frills mortgage tied to the Base Rate, offering to anyone who is looking to buy a new house, upgrade to new home, to invest in property and also refinance their current home.
Subject to a credit check, the bank lets you finance up to 90% of the property up to 30 years.
How does it work?
The Bank of China Housing Loan works like any conventional home loan with fixed monthly repayments. Your instalments may change according to any changes in the bank's reference rate. Note that you cannot make prepayment to reduce your loan principal as this is a fixed home loan.
What kind of fees do I need to pay?
There are a few such as Stamp Duty , Legal Fee, Valuation Fee,if any. You also need to watch out for a late payment fee of 1% should you missed your payment, and an early settlement penalty of 3% if you redeem the home loan within 3 years from the disbursement date.
Would I need to purchase insurance?
Bank of China requires to adequately insured the property against any risks so they can have peace of mind in lending you a load amount of money to secure the asset. You are also encouraged to subscribe to Mortgage Reducing Term Assurance ( MRTA).
Great, what documents do I need?
Property documents:
- Proof of Purchase / Sales and Purchase Agreement
- Tenancy Agreement (if applicable)
Salaried Employee:
- Copy of MyKad (front and back) or latest valid passport & Visa / Work Permit / Employment pass
- Latest 3-months salary slips or
- Latest Income Tax Assessment or
- Latest EPF Statement or bank statement of salary crediting account
- Proof of Purchase / Sales and Purchase Agreement.
- Tenancy Agreements (if applicable).
Self-Employed:
- Copy of MyKad (front and back) or latest valid passport & Visa / Work Permit / Employment pass
- Latest 3-months salary slips or
- Latest Income Tax Assessment or
- Business Registration Certificate – Form 24 and Form 49
- Latest 6-months bank statements and Company's financial statement.