Loan Tips for Property Investment in Malaysia

When deciding to invest in property, whether it’s to add to your portfolio or as a boost to your income, it’s important to understand how the financial side of things work.

The real estate market has taken a dive in the past several years, but it seems as if it is starting to pick up a bit. However, with the prices of homes fairly low right now, it may be a good time to seriously think about investing in real estate. Low prices, good terms and an abundance of properties make this a great buyers market.

Here are some investing tips to help with purchasing Malaysia real estate @

One of the most important aspects of finding lending for an investment property is to have a sizable down payment. Not only does it show the bank or lender you are a serious buyer, but it can help to give better terms for a financial loan.

Another tip is to try local banks first before looking outside of the area for a lender. Sometimes they can give better terms. Not only do local lenders seem to give better terms, but sellers can also help finance these days. Seller help seems to be much more common than in the past.

Even if a local bank can’t give you a good financial package, there are lenders where you can get good terms. In the past, it seems like loans were flying out the window and in reality, they were. But since the financing is no longer so easy as before, preparing your portfolio and showing the lender how serious you are can help get you the loan.

Securing a loan these days is much harder than before because of the tightened credit requirements, but financing a loan is not impossible. It can still be within your reach, especially if you are prepared with a large down payment.




With most mortgages for homes and residential properties, the lender attaches an insurance called mortgage insurance. But with investment properties this type of insurance wont be offered. Having at least twenty percent down is probably your best bet to get a decent rate. However, if you can do more, even five percent more, the rate will improve and you may be able to qualify to get a better rate for the loan (see government home loan).

It was popular years ago to secure two loans for investment properties but this is frowned upon today in the financial world. Even the large jumbo loans have been cut to a minimum, so if you are looking at a sizable amount of money, it may be harder to find a lender to help get the loan needed.

The biggest tip for securing a loan through a lending institution is to have a solid credit score. It can really influence the terms of a loan. For instance, if your credit score is below 740, the interest rate you may want will cost you more. Some lenders require more fees to keep the interest rate or they up the rate instead.

Investing in real estate properties can be rewarding but do research before taking the plunge.


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