Malaysia Property Investment: Can Foreigners Apply for a Housing Loan?

April 17, 2017 Malaysia

The Malaysia real estate market is currently on the rise as the Malaysian government strives for economic reformation. Interest rates of Malaysia property, especially those located in Kuala Lumpur, are at its lowest to better attract both foreign and local investors.

Malaysia Property Investment: Can Foreigners Apply for a Housing Loan? | Malaysia Property | Yazhou PropertyThe Kuala Lumpur skyline view from Titiwangsa Park

Aside from low interest rates, Malaysia property is also considered one of the cheapest in Asia. Couple that with Malaysia’s resilient economy, it’s no wonder foreign investors are flocking to the KL real estate market. But how exactly can expats buy Malaysia property or KL property for sale? Here are some of the most asked questions when foreigners want to buy Malaysia property:

1) Can foreigners apply for housing loan?

Generally, all working Malaysians (whether an employee or self-employed and locally or overseas) are allowed to register for a housing loan so they could buy their own private homes or perhaps KL condo for sale.

They also allow expats. Particularly foreigners in Malaysia with work visa or those who are under the ‘Malaysia My Second Home Programme’ are permitted to buy KL property investment or apply for a housing loan in Malaysia. Although there are select banks who offer loans to expats without visas, they are difficult to find and the loan amount is lower than the usual 80%.

Malaysia Property Investment: Can Foreigners Apply for a Housing Loan? | Malaysia Property | Yazhou PropertyThe famous Kuala Lumpur City Centre at night

2) How do I apply for a housing loan in Malaysia?

ExpatGo recommends that you must first find a good real estate lawyer to assist you in all your transactions. If you’re buying a Malaysia property investment, expect a lot of documents and agreements to sign. These include the standard Sale & Purchase agreement, the Letter of Offer, the Letter of Acceptance, and so on. You would need a good lawyer to represent you and your rights, preferably a lawyer who has previous experience in working with foreign investors since they’d be familiar with how the Malaysia or KL property market works.

It’s better if you already know what you want to invest in, whether it’s a KL luxury condo or an affordable KL apartment. You should also know the two categories of ownership: the freehold, where the property is permanently and fully owned by the buyer. The other is the leasehold, where the buyer is in possession only for a limited time.

The Malaysian government also offers the “Malaysia My Second Home Programme” (MM2H) to foreigners who meet the criteria. They are allowed to “travel to and from Malaysia unrestricted for an extended period of time,” usually 10 years. Those who have the MM2H visa are eligible to buy Malaysia property on the second year of their stay.

Malaysia Property Investment: Can Foreigners Apply for a Housing Loan? | Malaysia Property | Yazhou PropertyThe busy streets and skyline of Kuala Lumpur at daytime

3) What are the requirements for application?

If you’re ready to apply for a home loan, take note of these documents required .

For expats who are employees in Malaysia:
  • Identification Card – NRIC (copy)
  • Working Permit (if any) / PR card with validity more than 6 months
  • Property Booking Receipt
  • Sales & Purchase Agreement/Title (copy)
  • Latest 3 months pay slip
  • Latest 3 months personal bank statement (to show salary credited as per pay slip)
  • Employment Letter / Latest KWSP statement
  • Latest income tax declaration form with payment receipt acknowledgement
  • Deposit statement e.g Fixed Deposit, ASB or Bonds (if any)
For expats who are self-employed in Malaysia:
  • Identification Card – NRIC (copy)
  • Working Permit (if any) / PR card with validity more than 6 months
  • Property Booking Receipt
  • Sales & Purchase Agreement/Title (copy)
  • Latest 6 months Company bank statement
  • Latest 6 months Personal bank statement
  • Deposit Statement e.g Fixed Deposit, ASB or Bonds (if any)
  • Latest income tax declaration form with payment receipt acknowledgement (preferably 2 years)
  • Business Registration (to show ownership of the company)
  • Latest Profit & Loss statement
  • Memorandum of Article and Company Profile
  • Form 24, 49

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