Can Foreigners Get a Loan in Malaysia?

Are Foreigners Eligible for Mortgage Loans? Yes! While not all banks in Malaysia offer home financing to non-citizens, several major banks provide mortgage options for foreign buyers. Understanding the requirements, loan terms, and best banks for foreign home loans can help you secure the best deal. Malaysia is a popular destination for foreign investors due […]

  • Admin FAR Academy
  • April 2nd, 2025
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Are Foreigners Eligible for Mortgage Loans?

Yes! While not all banks in Malaysia offer home financing to non-citizens, several major banks provide mortgage options for foreign buyers. Understanding the requirements, loan terms, and best banks for foreign home loans can help you secure the best deal.

Malaysia is a popular destination for foreign investors due to its relatively affordable real estate market, attractive rental yields, and strong economic growth. However, financing a property as a foreigner comes with specific requirements and conditions that differ from those applied to Malaysian citizens.

Banks That Offer Foreign Property Loans

Some of the most foreigner-friendly banks in Malaysia include:

  • Maybank – Offers up to 85% financing for foreigners.
  • CIMB Bank – Ideal for business owners and commission earners.
  • Public Bank – Specializes in cross-border financing, especially for Singaporean buyers.
  • OCBC Bank – Caters to international buyers, particularly Singaporeans with OCBC accounts in Singapore.
  • HSBC Malaysia – Provides global banking services with financing options for foreigners.
  • UOB Malaysia – Offers property loans tailored for expatriates and foreign investors.

Each bank has different eligibility criteria and loan packages, so it is advisable to compare and negotiate the best terms before committing.

What Documents Are Required?

To qualify for a mortgage as a foreign buyer, banks generally require:

✔ Latest 3 months’ payslips or business income statements

✔ Notice of Assessment (NOA) and tax return receipts (to prove income stability)

✔ Employment confirmation letter (if employed)

✔ Bank statements (past 3-6 months)

✔ Copy of passport (to verify identity and nationality)

✔ Property sales and purchase agreement (for loan processing)

✔ Credit report from home country (to assess creditworthiness)

Having a strong credit profile and stable income source can improve your chances of securing a loan with favorable terms.

Loan Terms for Foreign Buyers

  • Financing Amount: Typically up to 70% of the property price (some banks may offer up to 85% for selected applicants).
  • Loan Tenure: Maximum 30 years or up to age 65, whichever comes first.
  • Interest Rates: Varies by bank, generally around 3.9%-4.5% per annum.
  • Loan Repayment Options: Monthly installments via auto-debit from a Malaysian bank account.

💡 Tip: Compare loan packages from different banks to find the best interest rates and repayment terms that suit your financial goals.

Malaysia My Second Home (MM2H) & Work Visa Holders

Foreigners who hold an MM2H visa or a work visa in Malaysia may have better financing options.

  • MM2H Visa Holders: Some banks offer preferential loan packages for MM2H participants due to their long-term residency status.
  • Work Visa Holders: Those employed in Malaysia with stable income may qualify for home loans with better terms compared to non-resident foreigners.

If you fall into one of these categories, check with banks for special mortgage schemes designed for visa holders.

Challenges Foreign Buyers May Face

Foreigners seeking a mortgage in Malaysia may encounter the following obstacles:

  • Higher Down Payments – Unlike locals, who can get financing of up to 90%, foreigners typically get 70% financing, requiring a higher upfront payment.
  • Strict Loan Approval Criteria – Banks assess foreign applicants’ income stability, creditworthiness, and ties to Malaysia.
  • Currency Exchange Risks – If you earn in a foreign currency, fluctuations in exchange rates can affect loan repayment costs.
  • Legal Restrictions – Foreign buyers must comply with minimum property price thresholds set by different states.
  • Limited Loan Packages – Some banks restrict financing options for foreigners due to perceived risks.

Best Practices for Foreign Buyers Seeking Loans

  • Work with a local mortgage specialist to understand loan requirements.
  • Open a Malaysian bank account for easier transactions.
  • Maintain a good credit score in your home country to improve loan approval chances.
  • Consider a local joint applicant (such as a Malaysian spouse or business partner) to improve eligibility.
  • Secure financing before signing a Sales & Purchase Agreement to avoid financial complications.

Alternatives to Traditional Bank Loans

If securing a bank loan proves difficult, foreign buyers may consider:

  • Developer Financing – Some developers offer in-house financing options with flexible terms for foreign buyers.
  • Private Lenders – Non-bank financial institutions may provide alternative financing solutions.
  • Cash Purchase – Paying in full upfront eliminates the need for loan approvals and interest payments.

Download Your Free Guide: How to Buy Property as a Foreign Buyer

If you’re looking to invest in Malaysian property and need expert guidance on securing a mortgage, get our free eBook:

📥 Download Now: How to Buy Property as a Foreign Buyer

This guide covers everything you need to know about financing options, legal requirements, and strategies to successfully buy property in Malaysia.

With the right approach, you can navigate the loan process smoothly and make a smart investment in Malaysia’s real estate market!

Admin FAR Academy