What is the Hong Leong Refinancing Property Loan?
Refinancing a home loan means taking out a new loan to pay off your existing one, typically to get a lower interest rate, reduce your monthly repayments, or access the equity you have built up in your property. Hong Leong Bank (HLB) offers a refinancing facility under its Property Loan suite, allowing homeowners to switch from another bank or to restructure an existing HLB loan under a new package.
The facility comes in two formats: the Hong Leong Housing Loan and the Hong Leong MortgagePlus Housing Loan. Both are calculated on a variable rate basis, with your property pledged as security to the bank. You can borrow from a minimum of RM100,000, with a maximum tenure of 35 years or until you turn 65, whichever comes first.
What loan packages are available?
The Hong Leong Housing Loan is a semi-flexi term loan. Any payment you make above your monthly instalment is treated as an Advance Payment, which reduces your Eligible Outstanding Balance which is the figure used to calculate your daily interest. This means overpaying does lower your total interest cost over time, with the offset capped at 30% of your outstanding loan balance. You can withdraw from your Advance Payment with written notice to the bank.
The Hong Leong MortgagePlus is a full-flexi option that links your loan account to a non-interest bearing current account. The daily balance in that current account is automatically offset against your outstanding loan principal, reducing your daily interest charges without requiring formal advance payments. The offset cap under MortgagePlus is higher at 70% of the outstanding balance, so borrowers who regularly maintain a meaningful balance in the linked account tend to save more on interest. You can repay or withdraw excess funds through the current account at any time via branch, cheque, ATM, or Internet Banking. Do note that MortgagePlus carries a one-time set-up fee of RM200.00 and a monthly maintenance fee of RM10.00.
How is the interest rate determined?
HLB's property loans are priced against the Standardised Base Rate (SBR), which Bank Negara Malaysia introduced on 1 August 2022 as the reference rate for all new retail floating-rate loans. The SBR moves in line with the Overnight Policy Rate (OPR) as determined by BNM's Monetary Policy Committee — when the OPR goes up or down, the SBR follows. HLB's SBR currently stands at 2.75% p.a., effective 14 July 2025. The effective lending rate (ELR) specific to your application will be stated in your Product Disclosure Sheet before you sign.
Because this is a variable rate product, your monthly repayment can change whenever the SBR is revised. If you are on a standing instruction, remember to update the payment amount after any rate change, otherwise you may end up underpaying without realising it.
How much can HLB finance?
HLB finances up to 90% of the net selling price or current market value of your property, whichever is lower. If you are also financing a Mortgage Decreasing Term Assurance (MDTA) or Mortgage Reducing Term Takaful (MRTT) premium through the loan, the margin can go up to 95%, provided the policy is taken up with Hong Leong Assurance.
The margin is assessed based on your property's current market value, not what you originally paid for it. A fresh property valuation is typically required as part of the refinancing process.
What are the fees involved?
Refinancing is not a cost-free exercise. Even where a bank waives certain administrative fees as part of a promotion, legal and stamp duty costs will still apply.
On early settlement, the current Hong Leong Housing Loan and MortgagePlus carry no lock-in period based on HLB's Product Disclosure Sheet dated December 2025, so early redemption fees do not apply. If you are refinancing an existing HLB loan taken before 2022, check your original Letter of Offer as older agreements may include a 36-month lock-in with a 3% penalty on 90% of the total approved facility limit.
On late payment, HLB charges 1% p.a. on the overdue amount, applied on daily rests. If your account falls 31 days overdue three or more times within any 12-month period, an additional 1.5% p.a. may be imposed on the outstanding balance. If arrears continue beyond 100 days, a further 1.0% p.a. is charged on top. These additional rates apply until the account is regularised.
Other charges to be aware of:
- Withdrawing your Advance Payment costs RM50.00 per request (subject to Service Tax)
- A redemption statement costs RM50.00 (subject to Service Tax)
- A letter of confirmation for EPF e-Pengeluaran costs RM20.00 per account per request (subject to Service Tax)
- Legal fees and stamp duty are charged separately by your solicitors in accordance with the Solicitors' Remuneration Order and Stamp Duty Act 1949
Do I need insurance or takaful coverage?
All residential properties financed under HLB must be covered by a houseowner policy or takaful equivalent. You will need to furnish a certified copy of the policy to the bank, with HLB noted as loss payee or mortgagee.
Mortgage Decreasing Term Assurance (MDTA), Mortgage Reducing Term Takaful (MRTT), and their level-term equivalents (MLTA/MLTT) are optional unless your Letter of Offer states otherwise as a promotional condition. Given that this loan is secured against your property, taking up life or total permanent disability coverage is worth considering.
What documents do I need to apply?
For salaried applicants, you will typically need to provide:
- NRIC (MyKad)
- Latest 3 months' salary slips
- Latest EPF statement or EA form
- Latest 3 months' bank statements
- Letter of offer or redemption statement from your existing lender
Self-employed applicants will need to submit business registration documents, 2 years' income tax returns, and bank statements. The bank may also accept other income substantiation such as tenancy agreements or rental income receipts on a case-by-case basis, provided the documents are independently verifiable.
You can submit your application at any HLB branch nationwide, or request for a sales representative to visit you at home or at your office.
Frequently Asked Questions
Is there a lock-in period?
Based on HLB's Product Disclosure Sheet (December 2025), the Hong Leong Housing Loan and MortgagePlus no longer carry a lock-in period, so no early settlement fee applies. If you are refinancing an existing HLB loan taken before 2022, check your original Letter of Offer as it may still include a 36-month lock-in with a 3% penalty on 90% of the approved facility limit.
What is the difference between the Housing Loan and MortgagePlus?
Both are variable-rate term loans, but they work differently. The Housing Loan offsets interest through Advance Payments, capped at 30% of your outstanding balance. MortgagePlus links your loan to a current account where any balance you hold automatically reduces your outstanding loan for daily interest calculation, with a higher offset cap of 70%. If you regularly keep a meaningful balance in your current account, MortgagePlus may save you more on interest. The trade-off is the RM200.00 set-up fee and RM10.00 monthly maintenance charge — it is worth running the numbers before deciding.
Will my monthly repayment change over time?
Yes. Since the rate is pegged to the SBR, any OPR change by BNM will affect your monthly repayment. HLB will notify you of rate revisions, but if you are on a standing instruction, you will need to update the payment amount manually. The bank may also adjust your instalment if it becomes insufficient to service the interest portion of the loan.
Can I use my EPF savings to reduce the loan?
Yes. EPF Account 2 withdrawals can be used to partially settle or reduce your outstanding loan. The letter of confirmation for e-Pengeluaran costs RM20.00 per request and is processed through the bank.
What happens if I miss a payment?
A late payment charge of 1% p.a. on the overdue amount applies from the first day of the missed payment. If your account falls 31 days overdue three times within any 12-month period, HLB may impose an additional 1.5% p.a. on the outstanding balance. At 100 days overdue, a further 1.0% p.a. is added on top. Prolonged default may result in legal action and foreclosure of your property.
Can non-Malaysians apply?
HLB's standard Property Loan is not restricted to Malaysian citizens. Eligibility is subject to credit assessment and may vary depending on your residency status and the type of property involved. Government-linked or subsidised refinancing schemes may carry their own citizenship requirements.
How do I apply?
You can submit your application at any HLB branch nationwide. Alternatively, you can request for a sales representative to visit you at home or at your office. For enquiries, contact HLB's Contact Centre at 03-7626 8899.
