The margin of financing is the share of the property price a bank will lend. Bank Negara Malaysia caps it at 70% only from an individual's third housing loan. For the first and second loan each bank sets its own limit, and several banks publish up to 90% for residential property. The longest tenure is 35 years.
| Situation | Maximum margin | Set by |
|---|---|---|
| Individual, 1st or 2nd housing loan | Bank's own policy (commonly up to 90% residential) | Each bank |
| Individual, 3rd housing loan onward | 70% | Bank Negara, since 3 November 2010 |
| Company or other non-individual | 60% | Bank Negara |
| Tenure | Up to 35 years | Bank Negara, since 2013 |
The 70% cap depends on how many housing loans you still have outstanding. Bank Negara's 2017 quarterly bulletin says it applies only to borrowers with three or more outstanding housing loans.
Yes. HSBC, RHB and Maybank state that non-residents can apply, and UOB states that foreigners can. None of them publishes a separate margin for foreign buyers, so the figure is decided case by case. Bank Negara's foreign exchange rules also allow a non-resident to borrow ringgit from a Malaysian bank to buy immovable property, except land on its own.
So when you see 95% or "90% + 10%", the extra usually covers insurance and fees, not a larger loan against the property itself.
HSBC's FAQ says the margin applies to the lower of the market value (the bank's valuation) and the net purchase price, meaning the price after any developer rebate. If the valuation comes in below the price, you fund the gap yourself.
Illustrative price only.
| Price RM500,000 | Loan | You pay |
|---|---|---|
| 90% margin | RM450,000 | RM50,000 |
| Third housing loan, 70% cap | RM350,000 | RM150,000 |
Legal fees and stamp duty come on top; see buying costs.
Bank Negara capped residential tenure at 35 years in 2013 and reaffirmed it in 2016, noting that stretching loans to 40 years would add to the total cost without making instalments meaningfully more affordable. Most bank pages add a second limit: 35 years or age 70, whichever comes first. At 45, that means about 25 years at those banks.
Bank Negara requires banks to assess affordability on income after tax and statutory deductions, counting all your debts: the debt service ratio (DSR). There is no single DSR limit set by Bank Negara; each bank sets its own.
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