Foreigners can apply for home loans in Malaysia, but they must meet financial and legal requirements. Having a strong financial profile and seeking legal/financial consultation can improve approval chances.
Loan Application Process
Step 1: Choose a Bank & Loan Package
Compare different banks' interest rates and loan tenure (usually up to 30 years or until age 65).
Determine the loan margin (percentage of financing provided by the bank).
Step 2: Submit Loan Application & Required Documents
The bank will evaluate your eligibility based on financial history, employment status, and property type.
Step 3: Credit Assessment & Approval
The bank conducts a financial assessment, including credit history, debt ratio, and income stability.
Approval process typically takes 1-3 weeks.
Step 4: Signing the Loan Agreement
Once approved, the borrower signs the Loan Agreement & Facility Letter with legal witnesses.
Stamp duty & legal fees apply.
Step 5: Loan Disbursement & Property Ownership Transfer
The bank releases the loan amount according to the property’s payment schedule.
Ownership transfer is completed, and the borrower begins repaying the loan based on the agreed terms.
Required Documents for Loan Application
For Employed Applicants:
Passport (Copy of all pages)
Visa/Resident Permit (if applicable)
Latest 3-6 months' salary slips
Latest 3-6 months' bank statements
Employment letter (Confirming job position, salary, and contract duration)
Latest Income Tax Return (if applicable)
Credit report (from home country if required)
For Self-Employed Applicants:
Passport copy
Business registration documents
Company financial statements (last 2-3 years)
Latest 6 months' personal & business bank statements
Income Tax Returns
Company profile & proof of business ownership
Additional Documents (If Applicable):
Letter of Approval for MM2H (if applicable)
Tenancy agreements (if showing rental income as proof)
Any existing loan statements
Generally, banks offer financing of up to 70% of the property value for foreigners (varies by bank).