How Much Can You Borrow?
It depends on three things: how much of the price the bank will lend, how long you borrow for, and how much of your income the bank lets go to repayments.
- Margin of financing: banks commonly lend Malaysians up to 90% on a first or second home, and some products go higher by adding insurance and fees into the loan. CIMB's Home Flexi, for example, can finance up to 95% including mortgage insurance, legal and valuation fees (those capped at 5%). Bank Negara caps the third outstanding housing loan in your name at 70%.
- Foreign buyers: usually up to 80%, depending on the bank and income documents.
- Tenure: banks such as CIMB and Public Bank lend for up to 35 years or until you're 70, whichever is sooner.
- Affordability: each bank sets its own debt service ratio limit (the share of your income that can go to loan repayments), so the same salary can qualify for different amounts at different banks.
What the monthly instalment looks like (illustration only, assuming 4.0% a year, not a quote; your actual rate is the bank's base rate plus your own spread):
| Loan amount | 30 years | 35 years |
|---|---|---|
| RM500,000 | About RM2,390 a month | About RM2,210 a month |
| RM800,000 | About RM3,820 a month | About RM3,540 a month |
A longer tenure lowers the monthly payment but adds to the total interest: on RM500,000, the extra five years add roughly RM70,000 of interest in this example. Ask the bank for your actual figures before you commit.
What Types of Home Loans Are There?
| Type | How it works | Suits |
|---|---|---|
| Term loan | Fixed monthly instalments. | People who want the simplest option |
| Semi-flexi | You can pay in extra to cut interest; taking it back out may need a request. | Occasional extra payments |
| Full flexi | Linked to a current account: money you park there reduces interest, and you can usually withdraw it. May carry a monthly fee. | People with spare cash they may need back |
Each of these can be conventional (interest) or Islamic (a profit rate under a Shariah contract such as Tawarruq, a Shariah-compliant buy-and-sell arrangement). Islamic financing is open to non-Muslims too.
What Documents Will You Need?
- Identity card (or passport for foreigners)
- Recent payslips, or business records if you're self-employed
- Recent bank statements
- Your latest tax return or EA form (your yearly salary statement from your employer)
- The booking form or Sale and Purchase Agreement for the property
Each bank's list differs slightly, so ask before you apply.
What Does a Home Loan Cost Besides Interest?
- Legal fees for the loan agreement.
- Stamp duty of 0.5% of the loan amount.
- Valuation fee, usually on a subsale.
- Mortgage insurance (MRTA or MLTA), which pays off the loan if you die or become disabled; it's often added to the loan.
- Lock-in penalty if you settle or refinance early, on loans that have one.
Our guide to comparing home loan rates covers how rates are set and how to get a better offer.
What Is Maybank's HouzKEY?
HouzKEY isn't a mortgage; it's a rent-to-own scheme. You rent a home from Maybank for an initial five-year term, with the option to buy it later. It's open to Malaysian citizens aged 18 to 70 earning at least RM3,000 a month, and only for homes from participating developers. Check the latest terms on Maybank's own site.
Are There Schemes for First-Time Buyers?
Yes, for Malaysians buying lower-priced first homes. Skim Rumah Pertamaku helps first-time buyers on capped incomes buy homes up to RM500,000. Malaysian citizens buying a first home of up to RM500,000 are also exempt from stamp duty on the transfer and the loan, for agreements up to 31 December 2027. Ask your bank which schemes you qualify for.
Can Foreigners Get a Home Loan in Malaysia?
Yes. Foreign buyers can usually borrow up to 80%, depending on the bank and their income documents. Loan buyers usually need a Malaysian bank account, which most banks ask non-residents to open in person. See buying property in Malaysia from overseas.
FAQ
A term loan has fixed instalments and is usually the simplest. A full-flexi loan is linked to a current account, so extra money you deposit reduces interest and can usually be withdrawn, but it may carry a monthly fee. Semi-flexi sits in between.
Banks commonly lend Malaysians up to 90% on a first or second home, and Bank Negara caps an individual's third outstanding housing loan at 70%. Foreign buyers can usually borrow up to 80%, depending on the bank.
Banks such as CIMB and Public Bank lend for up to 35 years or until the borrower is 70, whichever comes first.
No. HouzKEY is a rent-to-own scheme for Malaysian citizens aged 18 to 70 earning at least RM3,000 a month, for homes from participating developers.
Legal fees on the loan agreement, stamp duty of 0.5% of the loan, a valuation fee (usually on subsales), mortgage insurance, and a penalty if you settle early during a lock-in period.
Yes, usually up to 80% of the price, depending on the bank and income documents. Most banks ask non-residents to open a Malaysian bank account in person.
Updated September 2026. Rules, bank policies and fees change, and every purchase is different. This article is general information, not legal or tax advice, so please check the details with your lawyer and bank before you sign.