RHB Bank’s housing loan eligibility criteria includes applicants must be at least 18 years old and can be either residents or non-residents of Malaysia. Both salaried employees and self-employed individuals are eligible to apply. Additionally, applicants can apply individually or jointly, making it a versatile option for various types of borrowers.
Minimum income requirements are also part of the eligibility criteria. Applicants must have a minimum annual income of RM18,000. This ensures that borrowers have the financial capacity to manage loan repayments effectively. For expatriates, participation in the Malaysia My Second Home (MM2H) programme is required if they are married to a Malaysian.
RHB Bank Home Loan Eligibility
How Flexible Is the RHB My1 Full Flexi Home Loan?
The RHB My1 Full Flexi Home Loan offers significant flexibility, making it an attractive option for many borrowers. This loan is linked to a current account, allowing borrowers to make extra payments beyond their monthly instalments. By doing so, they can reduce interest costs and shorten the loan tenure. The interest is calculated on a daily rest basis, which means interest savings can be significant over the loan period.
Borrowers also have the option to withdraw excess funds from their home loan account at no extra cost, providing additional liquidity when needed. However, it is important to note that while additional payments can be withdrawn, prepayments cannot, as they are considered partial or full settlements of the loan.
What Are the Key Benefits and Privileges of the RHB Housing Loan?
Key benefits and privileges of the RHB housing loan include the ability to make flexible repayments without incurring additional charges. Borrowers can make unlimited additional repayments and redraws, ensuring they have access to extra funds when necessary. The loan also offers a high margin of financing, up to 90% of the property’s value, with an option to cover Mortgage Reducing Term Assurance (MRTA) and other fees by extending the financing to 95%.
Additionally, the RHB Mortgage Calculator is a useful tool for potential borrowers to estimate their monthly payments and overall loan costs. This calculator helps applicants determine a comfortable loan amount based on their financial situation.
What Are the Fees and Charges Associated with the RHB Housing Loan?
The fees and charges associated with the RHB housing loan are structured to be transparent and straightforward. There are no processing fees, monthly maintenance fees, or cash withdrawal fees. However, borrowers should be aware of certain penalties, such as a late payment fee of 1% per annum on the outstanding amount, a cancellation fee of 1% of the total approved amount if cancelled after acceptance of the Letter of Offer, and an early settlement fee if the loan is settled within the three-year lock-in period.
Compulsory fire insurance is required for all homeowners, usually covered by RHB, while MRTA is optional but recommended for added security in cases of fatality or permanent disability.
How Does the Application Process for RHB Housing Loan Work?
The application process for RHB housing loan involves submitting a set of required documents, which vary slightly between salaried employees and self-employed individuals. Salaried employees need to provide their NRIC or passport, the latest three months’ salary slips, salary crediting statements, the latest Employees Provident Fund (EPF) statement, and the latest BE Form with tax payment receipt. Self-employed applicants need to submit their NRIC or passport, business registration forms, the latest Form B with tax payment receipt, and the latest six months’ current account statement.
Once the necessary documentation is submitted, RHB Bank conducts a credit evaluation to assess the applicant’s financial standing. If approved, the applicant will receive a Letter of Offer, outlining the terms and conditions of the loan.
What Is the Role of Insurance in RHB Housing Loan?
Insurance plays a critical role in providing peace of mind for RHB housing loan borrowers. Mortgage Reducing Term Assurance (MRTA) is highly recommended, as it offers protection against death and total permanent disability, ensuring that the outstanding mortgage is settled in such events. Fire Insurance is mandatory, protecting the property against potential fire damage, and is typically arranged by RHB.