8 Practical tips when buying a home
Choose the type of loan that suits you
Type of interest rate: Loans either have fixed rates or variable rates. Fixed rates remain the same throughout the loan period, whereas variable rates are based on Bank Negara’s current Base Rate which varies from time to time.
- There are different financing schemes. We’ve explained the popular ones below:
- Semi-Flexi loans (most popular in Malaysia) – These loans typically have a lock in period of a few years. During this period, you may make early or extra repayments without incurring a penalty, but you will incur a penalty if you settle the full loan amount within the lock-in period. In addition, if you’ve made early/extra repayments and later need to withdraw the money, you’re going to have to pay a fee.
- Full-flexi loans – These loans are normally offered to clients who earn a high income and therefore have excess cash to make use of the flexible nature of the loan. It normally comes with a current account, which you can deposit extra money into, lowering your interest cost. You can also withdraw the excess cash you put into the current account should you need it, at zero cost. However, you must utilize a minimum percentage of your loan facility, or you’ll be charged a fee.