If you plan to buy a house, you’ll most probably need a home loan. However, getting a good home loan is actually pretty challenging. You’ll need to determine the kind of loan you need, and you’ll have to find out the best suitable offer.
When it comes to home loans, many people in Malaysia often ask the question, “Which bank offers the best housing loan?”
In actual, there is no “ONE” best bank for a home loan. Different banks will have different interest rates, packages and terms and conditions based on the different options.
“Best” could be argue in many ways, for example the cheapest rates, the best suitable, or even the best service. Even when judged on a single element (e.g. cheapest), there is no single “best” bank.
However, many customer have misconception that the best offer will be the lowest rates offer. But, is this true?
Is the best offer only determine by one basic element?
Traditionally, we are comparing based on the interest rates but i do believe this perception is very deceiving.
Yes, interest rate is important and crucial because it’s will determine the instalment amount one need to pay and interest earned by bank.
However, one should also considering the terms and conditions and home loan product given by bank. Because, these elements may help you to save more, sometimes even more than others who has cheaper rates than you.
I’m going to give a day to day example here.
Have you ever go to a supermarket and thinking of buy an item, and end up there are so many brand and prices, you just get confused.
Next, what you do is you start to compare the cheapest price and good quality brand. As usual good quality brand is more expensive than the cheapest product.
By end of your decision, you decided to walk away with the quality ones and more expensive product.
So, this example show the cheapest not necessary will be the best stuff that suit you. Occasionally, you might take the cheaper one but there are times you will also took the expensive product because of it quality or because it suit you more.
This example show, the cheapest not necessary the best for you. Only you can determine what suit you best.
Another simple example, Linda has approval from 2 banks.
Bank A is offering BR 3.90% + 0.60% = 4.50% with 80% approval and Bank B is giving BR 3.90%+ 0.70% =4.60% with 90% approval.
However, since Linda is short of cash. Even though, Bank A is giving cheapest offer but due to lower margin, Linda is not able to accept the offer.
Therefore, in this scenario, Bank A offer may not best suitable for Linda. The best offer for Linda is Bank B.
Conclusion, every offer should be look through carefully and compare from every details as possible. And we have the experience and energy to help you on this.
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