BSN housing loan eligibility refers to the criteria set by Bank Simpanan Nasional (BSN) that determine whether individuals or organisations can qualify for their housing loan schemes in Malaysia. These criteria are essential to assess the financial capability and reliability of the applicants seeking to finance their residential properties.
BSN Home Loan Eligibility
Who Can Apply for BSN MyHome Housing Loan?
Individuals who are Malaysian citizens aged 21 years and above, not exceeding 70 years old at the end of the loan period, are eligible to apply for the BSN MyHome housing loan. Applicants must have a regular income and be able to demonstrate their ability to make repayments. Furthermore, they must provide proof of property purchase or ownership. Properties eligible for financing should be located in areas with a Marketability Factor (MF) of 6 and above and can include both under-construction and completed properties.
For joint applications, the same eligibility criteria apply to all applicants involved. Organisations such as sole proprietors, partnerships, private companies, or public companies owned by Malaysian citizens can also apply. These organisations must have been operational for at least two years and demonstrate a stable financial record.
What Are the Documents Required for BSN MyHome Loan Application?
To apply for a BSN MyHome loan, individual applicants must submit a variety of documents. These include a copy of their NRIC, original and copies of the latest three months’ pay slips, and the latest three months’ bank statements. Additionally, applicants need to provide their most recent EPF statement, an employer confirmation letter, and a J Form or their latest income tax declaration. A copy of the Sale and Purchase Agreement and/or property documents is also required, along with an evaluation report for property purchase from a panel valuer registered with the bank.
For organisations, the necessary documents include the organisation’s bank statement for the past six months, the financial statement for the last two years approved by an authorised audit body, the B/BE Form with LHDN receipt, and the business registration certificate (SSM). The Memorandum & Articles of Association (M&A) and Board of Director Resolution are also required.
How Is the Loan Amount Determined for BSN MyHome?
The loan amount for BSN MyHome depends on several factors, including the property value and applicant’s financial standing. BSN offers a margin of financing up to 95% of the property purchase price, subject to terms and conditions. The loan tenures can extend up to 35 years, or until the borrower reaches 70 years old, whichever comes first.
For property financing, the interest rate varies based on the loan amount. For example, loans up to RM100,000 carry an interest rate of SBR + 3.85%, while those above RM500,000 have a rate of SBR + 1.25%. The current BSN Standardised Base Rate (SBR) is 3.00%. An additional 0.15% is applied for loans without insurance.
What Are the Features and Benefits of BSN MyHome?
BSN MyHome offers several attractive features and benefits to borrowers. The loan tenure can be up to 35 years, providing flexibility in repayment terms. The margin of financing can reach up to 95%, which is inclusive of Mortgage Reducing Term Assurance (MRTA). BSN offers easy application processes available at all BSN main branches nationwide, and provides convenient payment channels, including standing instructions and interbank GIRO (IBG).
Specific packages are available under BSN MyHome, such as the Second Charge Package for government servants and other government agencies eligible for a home loan, and the 2 Generations Package, which allows joint loans between two generations, enabling a longer loan period.
How Can One Repay Their BSN MyHome Loan?
BSN offers several repayment methods for the BSN MyHome loan. Borrowers can make repayments over the counter at any BSN branch nationwide. Alternatively, they can set up a standing instruction from their BSN savings account or use the Interbank GIRO (IBG) service for online transactions.
Early settlement of the loan is possible by submitting a written notice to the bank. BSN does not impose any early settlement fees, making it advantageous for borrowers who wish to repay their loan ahead of schedule.
Is Insurance Required for BSN MyHome?
Insurance coverage is a requirement when applying for BSN MyHome. Borrowers must sign up for a Mortgage Reducing Term Assurance (MRTA) to protect their interest in the event of death or permanent disability during the loan tenure. This insurance ensures that the outstanding loan amount is covered, providing peace of mind for both the borrower and the lender.
What Are the Fees and Charges Associated with BSN MyHome?
BSN MyHome has minimal fees and charges associated with the loan. There are no processing fees or early settlement charges. However, a late penalty fee of 1% per annum is charged on the outstanding amount if repayments are not made on time. Additionally, a redemption letter fee of RM50 per request and a fee of RM20 per request for a letter to withdraw EPF savings are applicable.