What is the bank loan margin? It is a term that often arises when home buyers apply for bank loans. The bank loan margin refers to the percentage of the loan given based on the house price. For example, if the loan margin is 90%, then for a house priced at RM 100,000, the loan given will be RM 90,000 only, and the remaining RM 10,000 needs to be paid in cash. The bank loan margin depends on the type of house being purchased and also varies based on the buyer's income and other factors.
Loan Margin:
First House: 100%
Second House: 90%
Third House: 70%
For the first house, buyers can obtain a 100% loan margin through the first house scheme if they meet the criteria. This is also known as a "Full Loan." If the buyer is not eligible for a full loan for the first house, they are usually given a loan margin of only 90%.
For the second house, the maximum loan margin given is 90%. For the third house, the maximum loan margin given is 70%. For a house priced at RM 100,000, this means the loan given will be RM 70,000 only. Therefore, a significant amount of cash needs to be prepared if interested in acquiring multiple houses.
Buyers also need to consider other charges such as legal fees and others, as they are not included in the house price.