Zero Moving Cost Home Loan Malaysia is a home loan package where the bank absorbs all the moving costs. The moving cost included legal fees, stamp duty, disbursement fees, and valuation fees.

zero moving cost

Zero Moving Cost Home Loan Malaysia is one of the available home loan packages, other than the Finance Entry Cost and Non-Finance Entry Cost.

So, a quick lesson about the difference between the zero moving cost, finance entry cost, and non-finance entry cost is as below.

Zero Moving Cost

Bank will pay the moving cost included legal fees, stamp duty, disbursement fee, and valuation fee.

Finance Entry Cost

The moving or entry cost like legal fees, stamp duty, disbursement fees, and valuation fees will be financed with the loan.

Non-Finance Entry Cost

The moving or entry cost like legal fees, stamp duty, disbursement fees, and valuation fees will be payable by the client.

When a person buys a house, they will require to apply for a home loan unless you don’t need a home loan, then this article irrelevant to you.

But, if you need a home loan, then there is a cost for applying for the home loan. The cost is what we call Moving or Entry Cost.

Moving or entry costs is including legal fees, stamp duty, disbursement fees, and valuation fees. This only refers to the loan agreement preparation.

Typically, it costs you about 2-3% of your original loan amount. If your loan amount is RM500,000, your moving or entry cost is about RM10k-RM15k.

However, it doesn’t cover your Sale and Purchase Agreement ( SPA ) legal fees, stamp duty, disbursement fee cost. You can’t cover this cost unless you’ve marked up your purchase price.

Also, when a person is looking for refinancing, they will need to apply for a home loan; therefore, the entry cost will be required too.

zero moving cost home loan advantages

Why is it better to take Zero Moving Cost Home Loan?

For every product that exists, there always advantages and disadvantages. Let’s explore the advantages and disadvantages of Zero Moving Cost Home Loan.

Zero Moving Cost Home Loan Advantages

  1. The borrower doesn’t need to pay for legal fees, stamp duty, disbursement fees, and valuation fees – this is super Great!
  2. The borrower can have more cash to use for another purpose, like renovation or buy furniture.
  3. The borrower doesn’t need to prepare so much cash when applying for a home loan – peace of mind.

Zero Moving Cost Disadvantages

What the weakness of taking Zero Moving Cost Home Loan?

The idea of the bank absorbs the moving cost is comforting, but they’re always a catch when someone pays for you.

Zero Moving Cost Home Loan Disadvantages

  1. Higher Home Loan Interest Rates compare to the standard package.
  2. Currently, not many banks are offering Zero Moving Cost Home Loan. Therefore, it’s less option for the borrower to compare.
  3. The home loan penalty can be longer, around five years.
  4. The home loan product is fixed. You can’t choose another type of home loan product. If the bank is offering a Full Flexi home loan, you can’t change it to Semi-Flexi.
  5. Sometimes, you are required to buy mortgage insurance with the bank or financial institutions.
  6. There is a minimum loan amount requirement.

Which bank is offering it now?

Currently, not many banks are offering Zero Moving Cost. The one that quite competitive are

a. Standard Chartered Berhad (SCB)

b. AIA Malaysia

If you’re interested in applying for Zero Moving Cost Home Loan, feel free to call us today at 012-6946746.

We will introduce an experience and helpful Standard Chartered Berhad and AIA sales personnel to assist your case.

call us Zero moving cost home loan

Zero Moving Cost Malaysia Bank

Currently, Standard Chartered Berhad (SCB) and AIA Malaysia are offering Zero Moving Cost Home Loan.

So let’s take a closer look at the criteria and requirement to apply for the Zero Moving Cost Home Loan.

Zero Moving Cost Standard Chartered Bank

SCB House Loan – Zero Moving Cost Home Loan

Who can apply?

Individual Malaysian citizens.

For self-employed – The business established for at least two years and operating profitability for the past two years.

Purpose of applying for a home loan,

  1. Buying a completed house ( Subsales )
  2. Refinancing with cash out
  3. Refinancing with debt consolidation

Interest Rates :

For Subsales and Refinancing With Cash Out : Up to 3.30%  ( *BR +%)

Refinancing with debt consolidation: From 3.85% to 4.00 %  (*BR+%)

* Interest rates are subject to change by the bank without notice.

Minimum loan:

RM200,000

The margin of finance:

The margin of finance is up to 90% for refinancing and buying a completed house.

Loan Tenure:

Up to 35 years or age 70 whichever is earlier.

Mortgage Insurance (MRTA):

Optional

Home Loan Product:

Full Flexi Conventional & Islamic home loan.

Home Loan Penalty:

Five years. 2% penalty for early redemption.

SCB House Loan Advantages:

  1. No need to pay legal fees, stamp duty, disbursement, and valuation fees.
  2. Fast approval.
  3. SCB house loan accepts debt consolidation case and offering zero moving cost package.
  4. SCB house loan is offering a Full Flexi home loan product. Full Flexi home loan product is allowing you to pay more without giving any notice. You can make extra payments and withdrawal anytime.
  5. When you pay more, it will save your home loan interest.
  6. The margin of finance is up to 90% for refinancing and buying a completed house.

ZEC House Loan Terms :

  1. Interest rates for Zero Cost are slightly higher than the standard home loan package.
  2. Full Flexi home loan imposed monthly RM10 maintenance fees in the home loan account.
  3. The home loan interest rates are variable — not fixed.
  4. The home loan installment is subject to change since it is a variable interest rate.
  5. Home Loan lock in period is up to five years.

If you’re interested in applying, call us today at 012-6946746, and we will introduce an experience and helpful Standard Chartered Berhad Sales officer to assist your case.

AIA Home loan rate

AIA Home Loan Rate – Zero Moving Cost

Who can apply?

Individual Malaysian citizens.

For self-employed – The business established for at least three years and operating profitability for the past three years.

Purpose of applying for a home loan,

  1. Buying a completed house ( Subsale )
  2. Refinancing with cash out

Interest Rates :

For existing policyholders or new AIA policyholders: 4.99% fixed rate, whole tenure.

For non-policy holder: 5.65% fixed rate, whole tenure

* Interest rates are subject to change by AIA without notice.

Minimum loan:

RM300,000

The margin of finance :

The margin of finance is up to 80% for refinancing case.

The margin of finance is up to 90% for buying a completed house.

Loan Tenure:

Up to 35 years or age 70 whichever is earlier

Mortgage Insurance (MRTA) :

Life policy or Mortgage Reducing Term Assurance (MRTA) is required.

Home Loan Product:

Conventional Home loan. No Islamic loan.

Home Loan Penalty:

Five years.

There is no penalty for full settlement through cash and EPF withdrawals.

AIA Home Loan Advantages:

  1. No need to pay legal fees, stamp duty, disbursement, and valuation fees.
  2. Fast approval.
  3. You will enjoy a fixed home loan interest rate for the whole tenure.
  4. You will pay a fixed installment for the whole tenure — peace of mind.
  5. The margin of finance is up to 90% for buying a completed house.
  6. No penalty imposed if fully settled the home loan with own cash or EPF withdrawal.
  7. The minimum Loan Amount requirement is low, RM300,000.

AIA Home Loan Disadvantages:

  1. Higher home loan Interest rates compare to other standard home loan package.
  2. A borrower is required to buy an MRTA or life insurance when accepted AIA offer.
  3. AIA provides a low margin of finance for refinancing case.
  4. Home Loan penalty is up to five years.

If you’re interested in applying, call us today at 012-6946746, and we will introduce an experience and helpful AIA Malaysia Sales officer to assist your case.

If you enjoy this article, feel free to share this article with your friends and family. And I see you in the next one.

#Malaysiahousingloan

Melissa Lee

Online Mortgage Consultant

012-6946746 (David)

www.malaysiahousingloan.net

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