OVERSEAS MORTGAGE LOAN

I am a Malaysian but have PR status in Australia. Do I qualify for the loan? (for properties in Australia)

No. The qualifying criteria for Overseas Mortgage product is strictly for Malaysian who has no PR status in Australia and has obtained FIRB approval to purchase the property in Australia

I am a Malaysian but have PR status in UK. Do I qualify for the loan? (for properties in UK)

No. The qualifying criteria for Overseas Mortgage product is strictly for Malaysian who has no PR and not citizen of UK. 

Does the product cover completed properties as well as those under construction?

Australia

The product covers only “Off The Plan“ properties which are direct purchase from developer.

("Off The Plan" is a term used in Australia for under construction property)

London

The product covers for both completed and under construction properties.

Do I need to take up Group Mortgage Term Assurance (GMTA)?

Group Mortgage Term Assurance is optional (applicable for MYR Loan only).

Who is eligible for the loan?

Preferred Banking customers and above (i.e. Private Wealth and Private Banking customers). 

Do I need to purchase fire insurance?

You will have to purchase fire insurance for the building and contents personally from insurance company in Australia/UK and provide a copy of the certificate with the Bank endorsed as the mortgage.  For strata properties or non-landed properties, you are to obtain the proof of renewal for the fire insurance policy from Body Corporates (Management Corporation) on a yearly basis for as long as the property is charged to the Bank.

Is refinancing of an existing loan with another FI (whether onshore or offshore) allowed under this scheme?

Yes, refinancing is allowed but subject to Bank’s discretion.

Only applicable to property that was purchased directly from developer.

For a property that is under construction, when will the Bank disburse the loan?

The Bank will only disburse the loan upon completion of the property with Occupancy Permit and Title issued.   It could be 1 to 3 years later depending on the construction progress.

What if AUD/GBP depreciates after loan is disbursed?

If AUD/GBP depreciates against MYR causing the loan-to-value (“LTV”) to increase, margin call may be triggered. If the LTV has breached the Bank’s tolerance level, you are required to top up the shortfall within 7 working days.

Will the Bank be willing to finance all types of properties, including student accommodation, hotel residences, etc?

This scheme is designed to finance only residential properties, both landed and non-landed i.e. houses and apartments.  We will not be financing student accommodation, hotel residences or commercial properties.

 Is loan disbursed in MYR or AUD/GBP?

Disbursement of the loan is in MYR and will be converted to AUD/GBP based on the AUD/GBP exchange rate using the Bank's spot rate on the Business Day prior to the date of disbursement, as determined by the Bank.

 Is Valuation Report required?

Yes, Valuation Report is required upon full completion of the property. Loan to be disbursed will be based on the lower amount between purchase price in SPA and current market value in the Valuation Report.

What if I cancel the loan after accepting the Bank’s offer?

The Bank will immediately appoint solicitors and valuer upon your acceptance of the Letter of Offer.  Hence, all fees and charges (if any) will be borne by you if the loan is aborted or cancelled subsequently, even if the loan is yet to be disbursed.

What if FIRB?

FIRB stands for 'Foreign Investment Review Board'. Evidence from Australia's Foreign Investment and Review Board authorising borrower to purchase property in Australia is required (only applicable for properties in Australia).

What is Bank Negara Malaysia’s rules on Foreign Exchange Notices (FE Notices) for Investment in Foreign Currency Asset?

1. A Malaysian resident individual without domestic borrowings is allowed to invest in Foreign Currency Asset up to any amount;
2. A Malaysian resident individual with domestic Ringgit borrowings is allowed to invest in Foreign Currency Asset up to any amount where the investment is in real estate* outside Malaysia for the purpose of education, employment or migration; (*real estate is for resident individual own accommodation for immediate family members only)
3. A Malaysian resident individual with domestic Ringgit borrowing is allowed to invest in Foreign Currency Asset up to RM1.0 million equivalents per calendar year using funds sourced from the aggregate of conversion of Ringgit into Foreign Currency, Trade FCA and swapping of a Ringgit-denominated financial asset in Malaysia for a financial asset outside Malaysia.
For further information, please refer to the Bank Negara Malaysia (BNM) website as follows:http://www.bnm.gov.my/

Important Note:

Please Note that the Bank will not disburse the loan if :

• FE(Foreign Exchange) approval is required but not obtained from BNM
• FIRB Approval is not obtained (for property in Australia)