Options in Housing Finance in Malaysia

Basic Term Semi-Flexi Full-Flexi

The most sellable benefit of housing loans in Malaysia are the array of type of loans available for people. It is indeed a big deal to own one’s own home and such schemes in financing properties in Malaysia makes it convenient for consumers to own a home, as long as they are able to afford the repayments and choose the housing loan intelligently. There are three types of   When seeking a home loan which includes Basic Term, Semi-Flexi or Full-Flexi.

If   the individual is inexperienced in products with it is best that he or she researches on the same to get a better idea and make a sound decision when choosing a housing loan

Basic Term housing Loan

This type of financing option comes with a repayment schedule that is fixed and where the monthly instalment paid is the same throughout the year the entire loan repayment term. e throughout your entire loan period.

In general, this type does not permit but neither makes it very hard to decrease the loan interest by paying in advance.Advance payments are indeed treated as prepayment for future instalments, hence have no effect on the the total interest that the individual is paying for the loan as a whole.itself.

it is possible to make requests to the bank for special considerations, whose approval is completely based on the bank’s discretion. Earlier basic term home loans were widely used by home buyers in the country. but they are not as popular as they were earlier. This is simple because of the lack of repayment flexibility   that a modern consumer expects.

Semi-flexi Housing Loans

This loan has a built-in facility that allows borrowers to pay in advance to reduce their loan interest without having to make any formal request to the bank. The additional amount   that is payed over the regular monthly instalment automatically affects   the interest rate by reducing the principal loan amount, which further lowers the amount of interest being charged for the home loan.

A request can be sent to the bank for withdrawal of additional payments made, although extra charges may be incurred for the process. It is more convenient for people who have spare cash or flexible income and hence with the potential to save on loan interest.

Full-flexi

Full-flexi housing loans come with the regular benefits of a housing loan in Malaysia where the borrowers are able to make advance payments lowering their property loan interest as well as withdraw the additional payments as per their choice of time and mode with hassle-free procedures or any additional charges for Flexi Loans in Malaysia.

This property loan account is linked to a current account through a chequebook. Each month, deduction of loan instalments automatically take place from the current account and is paid to the property loan account. IF individual deposits additional amount of money into the current account, the individual will also be able to offset the principle loan amount and have interest reduced. Here too withdrawal of the additional payment   made is possible by writing a cheque using the provided chequebook. No requests are necessary to be made with the bank, unlike semi-flexi loan.

Hence, based on your current financial decision you can choose the type of loan that suits you best.