Basics of Housing Loan

Introduction

Buying a house is an exciting event. It will probably be the biggest purchase you will ever make in your life. Understanding the steps involved in securing a housing loan will help you save time and avoid uncertainty and anxiety.

This information in the following pages will give you an insight into the various issues on financing a house and outlines the major steps in the overall process of financing a house. It guides you through the basics, explains the technical terms and gives you invaluable tips on financing a house.



Buying a House

Buying a house is a major step, so it deserves careful thought and planning. If you are buying a property under construction, you should check the background of the developer. You should ensure that the developer:


  1. Has a valid licence issued by the Ministry of Housing and Local Government which is still in force (not expired)
  2. Has a valid advertising and selling permit issued by respective local authority which is still in force

You have the right to enquire from the developer, information on licence and permit. You can also refer to the Ministry of Housing and Local Government for further clarification. A developer with a good track record reduces the risk of the project being abandoned.



What can I Afford?

Before you commit to purchase a property, you should first work out a budget to help you determine how much you can afford and the ceiling price on any property you may wish to buy. As a guide, your monthly commitments on paying instalments for your house, car and other payments should not exceed 1/3 of your gross monthly household income.


Your source of funding can be all or any combination of the following:


  1. Savings
  2. Withdrawal from Employee Provident Fund (EPF) account
  3. Loan facility from a financial institution


Savings

You should have sufficient personal savings to pay for the downpayment and other related costs associated with buying a house. A good estimate would be about 10%-20% of the purchase price as down - payment and another 3%-5% for related costs, such as legal fees and stamp duties.



EPF Savings

You could also withdraw from your Account 2 to make the initial downpayment. Please contact your nearest EPF office to inquire about your withdrawal eligibility.



Choosing your Financial Institution

You should shop around before you decide on any financial institution. Remember that when you take up a housing loan, you will be dealing with the financial institution on a regular basis for a period of time. Therefore, you should also consider factors other than just interest rates. Below are some of the factors you should consider:


  1. How professional is the financial institution in dealing with customers?
  2. Does it offer quality service in terms of efficiency and reliability?
  3. What are the available loan packages and which package suits you best?
  4. What are the charges involved?
    For example, legal fees, related government fees and charges, disbursement fees and others. You should also be informed when and how often these charges are to be paid

An innovative financial institution may offer a more suitable loan package that suits your needs and their application process may be faster and hassle-free. It usually takes about one to two weeks for your loan application to be approved from the time you submit all relevant documentation.



Loan Applications: Documents Required

You need to provide the following basic documents before the financial institution can process your loan application:


  1. A photocopy of identity card or passport
  2. Your latest 3 months' salary slip
  3. Your latest income tax return form (Form J) or EA form
  4. Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer
  5. A photocopy of the land title (if any)
  6. The latest bank statements (compulsory in the absence of salary slips and/or Form J/EA Form) dating back six months/savings passbook/fixed deposits
  7. Valuation report for completed houses and/or
  8. If you are self-employed, you need to provide your business registration documents, latest 3 months bank statements, latest financial statements and other supporting documents to support your income

However, some financial institutions may require additional supporting documents.


Upon acceptance of the letter of offer, you will need to appoint a lawyer to draw up the loan documentation for you. Normally, you would select your lawyer from a list of panel lawyers provided by your financial institution. Some of these documents need to be submitted to the relevant government authorities for registration and to the Stamp Office for stamping.


Upon completion of the above, these registered documents are then submitted to the financial institution and you will be given a copy of the Loan Agreement. In general, the timeframe for the completion of this legal process should not exceed 6 months.



Fees and Charges

There are also related costs such as professional fees and government charges that you would have to pay. Below are some of the common fees and charges you would expect to incur:


Sales & Purchase Agreement / Transfer / Financing

First RM150,000

1% (minimum fees of RM300)

Next RM850,000

0.7%

Next RM2,000,000

0.6%

Next RM2,000,000

0.5%

Next RM2,500,000

0.4%

Excess RM7,500,000

negotiable (not exceeding 0.4%)


Please note that the type of charges and the amount charged might change in the future. You should meet with your financial institution's loan officer for further advice and discussion regarding any questions that you may have concerning the type of fees and legal services.



Assesing your Loan Repayment Capacity

A common criterion is that your monthly loan instalment repayment should not be more than 1/3 of your gross monthly household income. If you have savings or fixed deposits, they can be used to support your loan application as financial institutions may take them into account in evaluating your eligibility. Different financial institutions have different criteria in calculating the repayment capacity. In the case of a floating rate loan, you should also note that your monthly repayment may increase substantially when interest rates go up.

For example, when there is an increase in the Base Lending Rate (BLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure. You should check this out with your financial institution.



Margin of Financing

The amount of financing provided by a financial institution depends on the market value (for completed properties only) or purchase price of the house, whichever is lower. The margin of financing would normally be up to 80% to 90% of the value of the house. This means that for a RM500,000 house, you can borrow up to RM400,000 to RM450,000 from the bank, with you paying the rest of the amount up front.


It is assessed on factors such as:


  1. Type of property
  2. Location of property
  3. Age of the borrower
  4. Income of the borrower


Loan Tenure

The length of a loan can range anytime up to 30 years or until the borrower reaches age 65 (or any other age as determined by the financial institution), whichever is earlier.



Loan Features

Each financial institution packages its housing loans differently. You should examine all the features of a loan package and not just base your decision on any single feature. Pricing is just one consideration; other features like flexible repayment terms could balance the scale or even translate into greater loan savings. Financial institutions generally offer housing loan packages either in the form of a term loan, overdraft, or a combination of a term loan and overdraft.

Banks generally offer the following housing loans:

  1. Traditional Term Loan, and
  2. Flexible Home Loan (or Flexi-Loan)

A Traditional Term Loan requires you to pay a fixed amount each month for a set period of time (e.g. 30 years). This predictable payment each month allows you to better control your cash flow.

A Flexi-Loan is essentially a traditional term loan combined with a current account. Flexi-Loans are suitable for people who want the flexibility of saving more money at different times. With Flexi-Loans, the more you save in your current account, the more you will be able to reduce the interest on your house loan.



Common Housing Loan Packages Offered by Financial Institutions

  1. Term Loan
    1. A facility with regular predetermined monthly instalments. Instalment is fixed for period of time, say 30 years
    2. Instalment payment consists of the loan amount plus the interest
  2. Overdraft facility
    1. A facility with credit line granted based on predetermined limit
    2. No fixed monthly instalments as the interest is calculated based on daily outstanding balance
    3. Allows flexibility to repay the loan anytime and freedom to re-use the money
    4. Interest charged is generally higher than the term loan
  3. Term Loan and Overdraft combined
    1. A facility that combines Term Loan and Overdraft. For example, 70% as term loan and 30% as Overdraft
    2. Regular loan instalment on the term loan portion is required
    3. Flexibility on the repayment of overdraft portion


Daily Rests VS Monthly Rests

Financial institutions may charge you interest either on daily rests depending upon the products offered. In the case of daily rests, the loan interest is calculated on a daily basis, while in the case of monthly rests, interest is calculated once a month based on the previous month's balance. Under both types of loan, the principal sum immediately reduces every time a loan instalment is made.



Graduated Payment Scheme

A graduated payment scheme allows lower instalment payments at the beginning of the loan but this will gradually increase over time. This type of payment scheme will help house buyers to reduce burden of loan repayment for the first few years and allow them to allocate more money for other purposes. Over time, as earnings of house buyers increase, their repayment capabilities will also increase thus allowing higher repayment instalments at a later stage.

A graduated payment scheme is also suitable for a house buyer who wishes to purchase a more expensive house but is restricted by his/her repayment capability during the initial years.



Prepayment Flexibility

Different financial institutions may have different terms and conditions imposed on prepayments. Check the loan package to see if it allows you the flexibility to make prepayments or extra payments. Flexibility to make prepayments and paying interest on a daily rest basis, may help save considerable interest charges. It is also possible to start repayment of the loan during the construction of the house, thus saving more interest charges. What is important is to make prompt monthly repayments.



Partial Prepayment of the Outstanding Loan

Many borrowers find it useful to shorten the loan tenure by making partial prepayments with surplus savings or annual bonus. Partial prepayments can be in any amount. However, some financial institutions may impose restrictions on the amount to be pre-paid while others may impose a penalty. It is extremely effective in reducing the interest charges you would have to pay if prepayments are made during the early years.



Early Termination Penalty

Financial institutions may impose a penalty on full repayment of loan. Generally, the penalty imposed can either be a flat rate or an 'x' number of months' of interest (e.g. 1 month's interest). This is because when a loan is granted for a certain term, the financial institution would expect the loan to be repaid over the period agreed and has planned their cash flow on this basis. An early termination of the loan would therefore disrupt the financial institution's cash flow planning. As such, some financial institutions do not charge a penalty if sufficient notice is given (as stated in the terms and conditions of the loan) or if the settlement is made after the required minimum period to maintain the loan with the financial institution has passed. Banks normally charge a penalty of 2% to 3% (on your original loan amount) if you fully pay off your home loan within the first two to three years. This "two to three year" period, where you will incur a penalty for early settlement, is essentially the "lock-in period" of your house loan.



Documentation

The primary documentation involved in applying for a housing loan is the loan agreement.

A Loan Agreement is a contract signed between the buyer and the financial institution. A Loan Agreement contains major provisions such as the terms of the loan, principal sum of the loan, interest rates, default interest rate, penalty charges and repayment terms. It also sets out the duties of borrower and the lender and in the event of default, the rights and remedies of each party.

The other common legal documents that you may need to sign are Deed of Assignments, Charge documents and Power of Attorney.

Remember that throughout the tenure of the loan, your property is charged to the financial institution (i.e. the financial institution has a claim over your property). Whether you are buying a completed property or a property under construction, you should obtain an explanation from the attending lawyer on the major clauses of the agreement and the implications of each clause.



Valuation Report

This documentation may be required if you purchase a fully completed property from a houseowner. The financial institution will appoint a property valuer from its panel of valuers to appraise the property. The valuation fee for this service starts from a few hundred ringgit upwards, depending on the value of the property and you will be charged for this service.



Insurance

It is extremely important to take insurance coverage when you purchase a house. The most important factor is that it gives you and your loved ones peace of mind, in the form of financial security if an unfortunate event should occur.

There are two important insurances to consider:


  1. The House Owner/Fire Insurance policy
    This policy provides coverage for your property against natural disasters such as flood, fire, riot, strike and malicious damage. For properties with strata titles such as apartments or condominiums, you need not buy the insurance because the Management Corporation (MC) would have taken up insurance on the entire building. You should ensure that you obtain the sub-certificate of the Master Policy issued by the insurance company from the MC and present it to the financial institution. This is necessary so that the financial institution is aware that the property has been insured and will not buy another fire insurance on your property. In such a case, you will be required to assign your rights under the policy to the financial institution.

  2. The Mortgage Life Assurance or MRTA
    This type of policy provides for full settlement of the outstanding balance of the housing loan with the financial institution, in the event of total permanent disability or death of the borrower. Premiums can usually be included in the loan amount, and the repayment period of the premium is usually spread over the loan tenure. The premium is only incurred once. There are no monthly or yearly premiums to be paid. In the event of early termination of housing loan, you will generally have the option to request for a refund of the premium for the balance of the unexpired period or to continue the insurance coverage.

Financial institutions have their own panel of insurers and most of them can arrange insurance on your behalf with the annual premium charged to your loan account.



Loan Disbursement

The financial institution disburses (pays out) the loan once it has received advice from its lawyer that the legal process has been completed and the loan documents are in order. At this time you will be informed of the date and amount of the first instalment you have to make.



Rights and Duties of the Borrower and Financial Institution

Both borrower and financial institution have certain rights and duties during the course of the loan. Some of the more important ones include:


RIGHTS


  1. Borrower
    1. Right to have access to all information that would affect your borrowing decision
    2. Right to be treated professionally, courteously and without prejudice
    3. Right to be consulted on changes to the terms and conditions of your loan
    4. Right to have accurate information on a regular basis on your loan account
    5. Right to enforce legal action in the event of a breach of contract

  2. Financial Institution
    1. Right to have full relevant disclosure of information on borrower's credit standing
    2. Right to correct and truthful information on the borrower
    3. Right to timely repayment of interest/ instalments of the loan
    4. Right to enforce legal action in the event of default/breach of contract


DUTIES


  1. Borrower
    1. Duty to read and understand all terms and conditions of the loan
    2. Duty to observe the terms and conditions of the loan at all times
    3. Duty to enquire and get clarification on all aspects of the loan to their satisfaction
    4. Duty to make prompt payment on the fees, charges, interest and instalment of the loan

  2. Financial Institution
    1. Duty to discharge borrowers' obligations as described in the loan agreement
    2. Duty to consult borrowers on any changes made to the terms and condition, fees charged and other relevant information
    3. Duty to attend to all queries made by borrower


A Loan Officer can provide invaluable assistance, and clarify issues which you are unsure. Take the time to discuss your housing loan questions with a loan officer at length so that you can choose a loan facility that best suits your needs.



Other Information


Common Home Loan Terms

  1. Base Lending Rate (BLR): The BLR is a reference interest rate used by banks to decide how much to charge for various products they offer. It is a rate that takes into account banks' cost of operations, and is typically similar among the major banks. In Malaysia, home loans are normally quoted as a percentage above or below the BLR. This means, if the BLR increases or decreases by a certain amount, the interest rates charged on floating rate home loans also increase or decrease by the same amount.
  2. Downpayment: An upfront payment made by the buyer of a house or car (or other highly priced goods/services). Downpayments are typically expressed as a percentage of the full purchase price. For example, a 5% downpayment of a RM500,000 home is RM25,000.
  3. Foreclosure: A foreclosure happens when the bank repossesses your property and attempts to sell it in order to settle the outstanding amount on your home loan. This usually happens when you fail to pay your home loan.
  4. Loan Tenure: This means "period" or "number of years". If a home loan has a "tenure" of 30 years, it usually means it would take 30 years to fully pay off the loan.
  5. Mortgage Reducing Term Assurance (MRTA): This is a type of mortgage insurance. An MRTA provides protection for an outstanding loan amount (usually a home loan), in the event of death or total permanent disability of the person insured. The amount of protection reduces over time, and normally matches the outstanding loan amount.
  6. Prepayment (of house loan): Fully or partially paying off your (home) loan before it is due.



EPF Withdrawal for Home Purchases

Employees Provident Fund (EPF) Withdrawal Procedure

  Account 1 Account 2
% of distribution from monthly contribution 70% 30%
Purpose of Account Savings for retirement. This savings cannot withdraw before you attain the age of 55 years old.
  1. To own a house
  2. To finance you and your children's education.
  3. For medical expenses.
  4. Upon attaining age of 50 years old.

Purpose:


  1. This withdraws allows you to utilise your saving from Account 2 to partially finance your purchase of a house individually OR jointly with your spouse or close family members namely parents or siblings.
  2. Buying of a house with another individual who has no kinship is allowed provided that the other individual is a buyer and borrower
  3. This withdrawal allows you to buy a house from a developer or an individual or through a public auction.
  4. EPF Withdrawal to purchase a second house is allowed after the first house purchased utilising EPF has been sold or disposal of ownership of property has taken place. Disposal of ownership refers to 'loss of ownership of the first house owned by you either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase'.


Types of residential housing withdrawals:


  1. To purchase or build a first house.
  2. To purchase or build a second house.
  3. To reduce or redeem the housing loan for first house.
  4. To reduce or redeem the housing loan for second house.
  5. To assist spouse to reduce or redeem his/her housing loan.

HOUSE PURCHASE FOR AN INDIVIDUAL JOINT PURCHASE WITH SPOUSE OR OTHER INDIVIDUAL

The difference between the house price and the loan amount plus an additional 10% of the house price


OR

All your savings in Account 2 (Whichever is lower but not less than RM500.00)


100% HOUSING LOAN

10% of the house price


OR

All your savings in Account 2 (Whichever is lower but not less than RM500.00)

The difference between the house price and the loan amount plus an additional 10% of the house price


OR

All the savings in each purchaser's Account 2 subject to maximum amount eligible for withdrawal (Whichever is lower but not less than RM 500.00)


CASH PURCHASE

Price of the house with an additional 10% of the house price


OR

All your savings in Account 2 (Whichever is lower but not less than RM500.00)



1) To purchase or build a second house.

  • Members are allowed to withdraw their EPF savings for a second time to purchase another house on condition that members have sold (not in possession) the first house purchased through EPF withdrawal.


2) To reduce or redeem the housing loan for first house.

  • Application for withdrawal can be made once every year from the date of the last housing withdrawal, with a minimum amount of RM500, but subject to showing proof of sale or not in possession of the first house to EPF.


3) To assist spouse to reduce or redeem his/her housing loan

  • Members are allowed to withdraw all money from Account 2 or the difference between the purchase price and loan amount, whichever is lower, to assist their spouse to reduce or redeem the housing loan even though they are not the borrower.

NOTE: The member need not be a joint owner of the house, the condition of withdrawal include the proof of marriage.



CASH PURCHASE FROM DEVELOPER
  1. A confirmation letter from the developer stating that purchase is by cash; AND
  2. Proof of payments of at least 20% of the price of the house; AND
  3. Architect's Certificate to confirm progress of construction is not less than 20%


Eligibility:

  1.  
    1. A Malaysian Citizen OR
    2. A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute ot the EPF; OR
    3. A Non-Malaysian Citizen who:
      1. Has become an EPF member before 1 August 1998, OR
      2. Has obtained a Permanent Resident (PR) status.
  2. You have not reached the age 55 at the time the EPF receives your application; AND
  3. You have a minimum savings balance of RM500.00 in your Account 2.


Procedure

  1. Submission of EPF withdrawal form [Form KWSP 9C(AHL)]
  2. The original copy of the Sale and Purchase Agreement.
  3. Photocopy of your Identification Card.
  4. A copy of the letter of loan approval from your end-financier.
  5. Proof of relationship
    (This is for joint purchase involving spouse or next of kin namely parents or siblings. For joint purchase involving next of kin, the member is required to submit an explanation letter stating the reason for the joint purchase)

Note: The original Sale and Purchase Agreement, Letter of Loan Approval from your end-financier and your original Identification Card have to be sighted by the EPF officials.



NEW SCHEME:

FLEXIBLE HOUSING WITHDRAWAL

Objective

  1. The Flexible Housing Withdrawal is a process to ring fence or set aside a part of savings in member's Account 2 to the Flexible Housing Withdrawal Account to enable the member obtain a higher housing loan amount to purchase/build a house.
  2. The concept or the facility of the Flexible Housing Withdrawal is to utilise the current and future EPF's savings/contribution value in consideration of providing loan by the Financial Institution.
  3. Based on this concept, the monthly contribution to the EPF is considered as an income. Therefore, the member can obtain a higher loan amount since the credit assessment on the net income also takes the EPF contribution into consideration (employee and employer's share). As a result, the member can purchase/build a house with a higher price since this would enable them to obtain a higher loan to finance the purchase/building a house.


Eligibility

  1. Basic Term
    1. The eligibility to apply for Flexible Housing Withdrawal is subject to the member's eligibility to apply for the Purchase/Build A House Withdrawal under the existing EPF Housing Withdrawal
    2. Applicant is a house purchaser/building a house and has a housing loan.
    3. Applicable for only one (1) house unit at any one time, subject to the housing withdrawal eligibility
    4. Minimum savings period of one (1) year
    5. The maximum period is subject to the last date of housing loan or last date of ring fencing the savings or age of 55 (whichever is earlier)

  2. Citizenship
    1. Malaysian citizen; OR
    2. A Malaysian citizen who has made the Leaving in Country Withdrawal before 1 August 2005 and has opted to re-contribute with the EPF; OR
    3. A Non-Malaysian citizen who has obtained a Permanent Resident (PR) status

  3. Age
    1. Has not reached the age of 54 on the date the application is received by the EPF

  4. Property and Loan
    1. Purchase a residential house (type: bungalow/ terrace/ semi-detached/ apartment/ condominium/ studio apartment/ service apartment/ townhouse/ SOHO) or shop lot with residential unit; OR
    2. Build a residential house / village house on own land or owned by spouse; AND
    3. Has a housing loan to purchase/build a house with any of the approved Financial Institution
      You are not eligible if:
      1. Buying land or house lot only
      2. Renovate, repair/ additional works to the existing house
      3. Purchasing/ building a house overseas
      4. Has a loan in the form of overdraft or for the purpose of refinancing

  5. Ring Finance & Transfer Amount
    1. The Application amount must not be more than the Housing Loan Amount
    2. Application to transfer the savings in Account 2 can be made as follows:
      1. Transfer of existing savings from Account 2 and monthly transfer (according to the fixed amount applied by the member); OR
      2. Monthly transfer (according to the fixed amount applied by the member) only
    3. The monthly fixed transfer amount cannot be changed and will remain according to the amount selected during application



How to Apply

First Time Application

No. Withdrawal Status Required Documents by EPF
1 Member has never made Withdrawal to Purchase/Build a House or Withdrawal to Reduce/Redeem Housing Loan
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
2 Member has made Withdrawal to Purchase/Build a House or Withdrawal to Reduce/Redeem Housing Loan BUT has lost ownership of the house
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Band Loan Verification Letter
    3. Document/Proof of Lost of Property Ownership
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
3 Member has made Withdrawal to Reduce Housing Loan for Spouse and/or Housing Loan Monthly Instalment Withdrawal
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Band Loan Verification Letter
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
4 Member has made Withdrawal to Purchase/Build a House or Withdrawal to Reduce/Redeem Housing Loan Member is not eligible for Flexible Housing Withdrawal


Second Time and Subsequent Application

No. Type of Property Required Documents by EPF
1 Same Properties
  1. Cancellation of Flexible Housing Withdrawal
    1. Form KWSP 9Q(2)
  2. Withdrawal to Reduce/Redeem Housing Loan
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
  3. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
2 Different Properties
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Band Loan Verification Letter
    3. Document/Proof of Lost of Property Ownership
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)

Further detail can be referred to:

Kumpulan Wang Simpanan Pekerja
Bangunan KWSP, Jalan Raja Laut, 50350 Kuala Lumpur.
Tel : (603) 26946566
Fax : (603) 26948433
Email : enquiry@epf.gov.my
Website : www.kwsp.gov.my




MM2H



Malaysia is fast becoming a country of choice for expatriates keen on settling in the Asian region. Here are some compelling reasons to set up a second home here.



Low Cost of Living

Malaysia's cost of living is one of the lowest in Asia. The Malaysian government ensures that inflation is kept at manageable levels to ensure that prices of basic goods and services remain affordable.



Standard of Living

In spite of its status as a developing nation, Malaysia is a cosmopolitan country with modern skyscrapers, western style shopping complexes, world -class roads and other infrastructure comparable to developed countries.



Language & Culture

Although Bahasa Malaysia is the country's national language, English is widely used in cities and towns. In addition the mix of Indian, Chinese and Malay cultures contribute to a lively arts and cultural scene.



Education Facilities

Malaysia is an upcoming education hub in Asia. The country has one the the best public and private education centres in the region from pre-school until tertiary level.



Medical Facilities

Staffed with efficient & highly qualified personnel, Malaysian medical expertise is sought by people who need critical medical attention as well as cosmetic & preventive medical treatments.



Political Stability & Safety

The Malaysian government is one of the longest serving democratically elected governments in the world. The country's judiciary system is based on the British system of justice and its comprehensive laws and efficient law enforcement agencies ensue that Malaysia's crime rate is relatively lower than most countries in the world.

Global Oriental Berhad has a wide range of spacious trendy homes that will enhance your lifestyle and add to your enjoyment of this tropical paradise.



Malaysia, My Second Home Programme

The Malaysian Government created the 'Malaysia, My Second Home' Programme to allow foreigners who meet the criteria required to stay in Malaysia for an indefinate period of time. Every successful applicant of the programme will be issued a Multiple-Entry Visa with Social Visit Pass, which is renewable every 10 years. It is open to citizens of all countries recognised by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring their spouses and unmarried children below the age of 21 as dependants.

Some of the benefits enjoyed by the programme's participants include (but not limited to)


  • Each participant is allowed to bring in his/her own personal car OR to purchase a locally-assembled car without the need to pay import duty, excise duty and sales tax.
  • Each participant can bring their children and they can further their studies at international colleges & universities
  • Each applicant is allowed to apply for one maid subject to the prevailing guidelines of the Immigration Department of Malaysia.
  • Any foreigner may purchase any number of residential property in Malaysia, subject to the minimum rates established for foreigners by the different states. They start from RM500,000 per unit for most states, from 1st January 2010. Land is a state matter and it is important to check state laws before making any commitment, as the minimum purchase price is not standardised between states.
  • Participants are allowed to invest and actively participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sector.

To find out more, click on the links below:
www.mm2h.gov.my
www.mm2h.com




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