Public Bank’s housing loan interest rate starts from 4.22% per annum, which is competitive within the Malaysian market. This rate is applicable to loans exceeding RM200,000. The type of interest rate can be either fixed or floating, depending on the borrower’s preference. Public Bank offers a semi-flexi loan structure, allowing borrowers flexibility in managing their repayments. The loan tenure can extend up to 35 years, providing long-term financial planning options. The interest rate you receive will be determined by Public Bank upon the approval of your loan application.
Public Bank Home Loan Interest Rate
How Does the Public Bank 5 Home Plan Work?
The Public Bank 5 Home Plan is designed to offer flexibility to its borrowers. It is a semi-flexi or full-flexi home loan that allows customers to choose between fixed and floating interest rates pegged to the Base Rate (BR). The loan tenure can be up to 35 years, providing an extended period for repayment. Borrowers have the option to make additional repayments when they have extra cash, thereby reducing the loan principal and overall interest. However, if you want to withdraw any extra cash paid, you are limited to one withdrawal per month and a charge of RM50 per withdrawal applies. This flexibility can be particularly beneficial for those who anticipate changes in their cash flow over time.
What Are the Fees and Requirements for Public Bank Housing Loans?
When considering a Public Bank housing loan, it is important to be aware of the associated fees and requirements. The fees include a late penalty fee of 1% per annum on the outstanding amount, a withdrawal fee of RM50, and a processing fee ranging from RM50 to RM200, depending on the financing amount. If you settle the loan early within the three-year lock-in period, an early settlement fee of 2% to 3% will apply, depending on the loan size. Applicants must have a minimum annual income of RM24,000 and be between the ages of 21 to 70 years. Both salaried employees and self-employed individuals of any nationality can apply.
How Can Borrowers Benefit from Public Bank Housing Loans?
Borrowers can gain significant benefits from Public Bank housing loans, primarily through the potential to save on interest payments. By depositing extra cash into their loan account, borrowers can reduce their loan principal, thus lowering the daily calculated interest. This can effectively shorten the loan tenure and reduce the overall interest paid. Additionally, Public Bank offers a free credit card with an annual fee waiver for eligible customers, providing added financial convenience. For customers with an excellent credit history, there is an option for higher margin financing, potentially covering up to 100% of the property price, including legal fees and Mortgage Reducing Term Assurance (MRTA).
What Documents Are Required for a Public Bank Home Loan Application?
To apply for a Public Bank home loan, applicants need to prepare several documents. These include a completed application form, a copy of the identification card or passport, and a copy of the Sale and Purchase Agreement (SPA) or booking receipts. Salaried applicants must provide the latest 3 to 6 consecutive months of salary slips, an EA Form, and EPF statements not older than one year. Self-employed applicants need to submit the latest 6 months of bank statements and one year of tax returns. These documents ensure the bank can accurately assess the applicant’s financial standing.
Is It Easy to Repay a Public Bank Home Loan?
Repaying a Public Bank home loan is designed to be convenient, thanks to the bank’s extensive branch network across Malaysia. Borrowers can make payments through various channels, such as online transfers, Interbank GIRO, standing instructions for automatic deductions, and through ATMs or cash deposit machines at Public Bank branches. This variety of options ensures that borrowers can choose the most convenient method for managing their home loan repayments, enhancing the overall customer experience.