The Bank Rakyat Home Loan Calculator is a tool designed to help potential borrowers estimate their monthly repayments based on the loan amount, tenure, and applicable interest rates. Users can input the desired loan amount, ranging from RM50,000 to RM10,000,000, and select a repayment period of up to 35 years. The calculator then provides an estimated monthly payment, allowing users to better plan their finances. This feature is particularly useful for those who want to compare different loan scenarios before making a decision.
Bank Rakyat Home Loan Calculator
How to Calculate Bank Rakyat Home Loan Repayments?
To calculate Bank Rakyat home loan repayments, use their simple calculator to estimate instalments. For example, financing RM300,000 with a profit rate of 3.9% over 30 years would result in monthly payments of around RM1,415. The tool is useful for evaluating your budget. For specific advice, contact Bank Rakyat directly.
What Are the Key Features of Bank Rakyat Home Financing-i?
Bank Rakyat’s Home Financing-i Manzili Selesa is a Sharia-compliant financing solution that offers various attractive features. It allows a margin of financing up to 90% plus an additional 5% for Mortgage Reducing Term Assurance (MRTA) costs. The loan tenure can extend up to 35 years, or until the borrower reaches 65 years of age. Notably, the financing comes with a capped floating profit rate of 10.6%, protecting borrowers from potential rate hikes. The repayment options are flexible, including salary deductions for government employees and direct debits from savings accounts.
Is Bank Rakyat Home Loan Suitable for First-Time Buyers?
Yes, Bank Rakyat offers a specific product called the My 1st Home Scheme, tailored for first-time home buyers. This scheme allows financing up to 110% of the property value, inclusive of MRTT, legal, and valuation fees. The scheme is designed to assist young adults and those with an annual income of at least RM24,000. Applicants must be Malaysian citizens aged between 18 and 35. The program supports individual or joint applications, provided the property purchased is for personal residence.
What Are the Pros and Cons of Bank Rakyat Home Loans?
Pros
Bank Rakyat’s home loans are an attractive option for customers who prioritize Sharia-compliant financial solutions. By adhering to Islamic banking principles, these loans provide a way for borrowers to finance their homes while staying true to their religious beliefs and values.
Bank Rakyat offers flexible repayment methods, allowing borrowers to choose the option that best suits their financial situation and preferences. Government employees can opt for convenient salary deductions, while others can make payments via online transfers, providing a level of flexibility and ease in managing the loan.
The My 1st Home Scheme from Bank Rakyat stands out for its high margin of financing, offering up to 110% of the property value. This generous financing covers additional costs associated with homeownership, such as MRTT and legal fees, reducing the upfront financial burden on borrowers.
Cons
One potential drawback of Bank Rakyat home loans is the 5-year lock-in period. During this time, borrowers are restricted from making early settlements or prepayments without incurring penalty fees. These fees can be higher compared to other banks, which may be a consideration for those who anticipate the ability to settle their loan earlier.
Bank Rakyat home loans are not structured as flexi loans, meaning that any excess payments made by the borrower are treated as advanced payments rather than being used to reduce the overall interest charges. This lack of flexibility in payment allocation may not be ideal for borrowers looking to minimize interest paid over the loan tenure.
What Documents Are Required to Apply for a Bank Rakyat Home Loan?
To streamline the loan application process, applicants need to gather and submit several key documents to Bank Rakyat. The first step is to complete the application form, ensuring that all required information is accurately provided.
A copy of the applicant’s National Registration Identity Card (NRIC) is necessary to verify their identity and eligibility for the loan. This document serves as proof of citizenship and is a crucial component of the application.
Property-related documents, such as the Sales and Purchase Agreement or a booking receipt, must also be submitted. These documents provide details about the property being purchased, including its value, location, and ownership status.
Income verification is the main aspect of the loan application, and the required documents vary based on the applicant’s employment status. Fixed-income earners, such as salaried employees, need to provide salary slips as proof of their regular income. On the other hand, self-employed individuals must submit bank statements and their business registration documents to demonstrate their financial stability and ability to repay the loan.
How Can I Repay My Bank Rakyat Home Loan?
Bank Rakyat offers 4 convenient options for borrowers to repay their home loans:
- One popular method is online transfer, which allows borrowers to easily transfer funds from their Bank Rakyat savings or checking accounts directly to their loan account. This option provides a secure and efficient way to make payments from the comfort of one’s home or office.
- For those who prefer to make payments in person, Bank Rakyat has partnered with the Malaysian Electronic Payment System (MEPS), enabling borrowers to repay their loans at any of the over 5,000 MEPS ATMs located nationwide. This extensive network of ATMs offers accessibility and flexibility for borrowers to make payments at their convenience.
- Interbank GIRO is another repayment option that facilitates payments through participating banks’ branches or online banking platforms. This allows borrowers to make payments from their accounts at other banks, expanding the range of payment options available.
- For borrowers who prefer a more automated approach, Bank Rakyat offers the convenience of setting up a standing instruction. This facility enables automatic deductions from the borrower’s designated bank account, ensuring that payments are made on time without the need for manual intervention.