Maybank Home Loan Review: Competitive Introductory Interest Rates

Maybank Home Loan Review: Competitive Introductory Interest Rates

Home loan products from Maybank, a banking company based in Malaysia (with its own line of credit cards and ATM network among other financing services), are one of the most expensive in terms of the interest rate. Their interest charges are among the highest over any other investment banking groups, but their low introductory interest rate, lenient flexibility for foreign customers being a foreign business themselves, and flexibility with their loan eligibility conditions still make them relevant for property payments.

Good for Bad for
  • Individuals seeking low first-year interest rates
  • Individuals seeking to refinance for home loans of SGD 200,000 to SGD 300,000
  • Loan terms that give customers banking benefits to refinance their products every few years
  • Individuals who are seeking competitive home loan rates (despite having low introductory rates, the Maybank housing loan is expensive)

Editor’s Rating: 4.0 / 5.0

 

Features and Benefits

With their low introductory rates, Maybank property loans are the policies for those who plan to refinance their loans every few years. You can refinance your property purchase for up to more than 60% in a Maybank home loan. And their repayment options include both fixed-rate or floating rate term loan.

They are a bank based in Kuala Lumpur, Malaysia but conducts about 25℅ of their lending in their Singapore branch. Because of this, they offer financing for a property purchase or construction to both Singapore residents and foreigners who are in the area. Maybank has a friendlier policy for foreigners in Singapore, and you can even purchase property outside the country with your loan.

 

Types of Maybank Home Loans

Maybank Malaysia has three main types of home loans available here in Singapore. Each option has its corresponding strengths and weaknesses, and the best policy will depend on what services your current situation demands for the moment.

1. Maybank HDB Home Loan

Maybank’s HDB home loans have low introductory rates that are evidently more expensive in total. The rates for this loan type from Maybank increase rapidly after the lock-in period. You should think about financing this investment wisely as loan repayments should be planned before the lock-in ends. Your payment can come in both vouchers and credit cards, but be sure to consider all asset management options.

2. Maybank Private Home Loan

Similar to their HDB home loans, Maybank private home loans also have a characteristically low introductory rate. And, after the lock-in period expires, higher interest rates for your loan services are charged. This makes the total loan cost from Maybank higher than that from other banks.

The bank also offers loans for a property under construction, subject to the same policies as their private home loans, regardless of initial property value.

3. Maybank Refinancing Home Loan

Like their other two policies, the Maybank refinancing home loan also has the bank’s characteristically low introductory rate that increases dramatically over time. Subsidies of 0.4% of the loan up to SGD 2000 are available, which is particularly advantageous for those who borrow small loan amounts between SGD 200,000 to SGD 300,000.

 

Interest Rates and Fees

To help you decide on what Maybank home loan services to get, you can check the following table for their different rates and benefits.

Loan Type Partial Repayment Fee Full Redemption Penalty Cancellation Fee
Tracker 1.5% 1.5% 1.5%
Board 1.5% 1.5% 0.75%
Fixed-Rate 1.5% 1.5% 0.75%
BUC N/A 0.75% 0.75%

 

 

How Does Maybank Home Loan Compare with Other Banks

Despite not being among the best home loan banks in Singapore, Maybank Malaysia can hold its own against other banking services. Their products have their own strengths and weaknesses, and you can refer to the following table for the comparisons (Table of contents copyright credited to the company site for each banking business, all rights reserved).

Bank Interest Rate Lock-in Period Loanable Amount Loan Tenure Processing Fee
DBS 1.50% (but will only go up to 1.83%) 2 years Minimum SGD 100,00 Up to 30 years 0.75 – 1.50%
HSBC 1.25% on the 1st year (SIBOR) 2 years Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount
Maybank 1.21% on the 1st year (SIBOR) 2 years Minimum SGD 100,00 Up to 30 years 1% of the loan amount
RHB 1.15% on the 1st year (SIBOR) 3 years Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount
Standard Chartered 1% on the 1st year (SIBOR) 2 years Minimum SGD 100,00 Up to 30 years 1% of the loan amount
OCBC 1.40% on the 1st year No Lock-in Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount

Note: These banks also have their own stock broking and overdraft products for the purchase or construction of your homes. The loan tenure for a home loan can be as short as 5 years.

 

What Makes Maybank Stand Out

The main selling point of the Maybank Home Loan products is its low introductory rates. Despite having a more expensive total loan cost than other banks, Maybank’s policies are perfect for those who will be financing their loans every few years. Their subsidies are also favorable for those who want to take out a small loan. What makes Maybank stand out among its competitors is its competitive introductory offer for those who are new to home loans and are planning to refinance their loans later on.

 

Eligibility and Requirements

To qualify for the Maybank home loan application, you should meet their eligibility requirements and submit the necessary documents. To check whether or not you are eligible to get a Maybank home loan, you may refer to below:

  • Have proof that you have an address in Singapore (regardless of whether you are a citizen or a foreigner)
  • Age must be 21 to 65 years old
  • A minimum annual income of SGD 30,000

To help you prepare the necessary documents you have to submit to the bank, they are listed below. You can submit these in either JPEG or PNG formats.

  • Proof of identity (stating your name and other important details)
  • Proof of income under your name
  • Proof of property ownership for those who have newly purchased their property under their name
  • Proof of current financing (e.g., credit cards) for refinancing policies, if it applies
  • Financial details (credit card, deduction applicable, etc.)

Additional required documents are asked, which you can confirm with customer service for further clarification. Do this after deciding which type of Maybank home loan you would be applying for.

 

How To Apply

With the advent of technology, loan applications can be simplified in three steps that you can do online. You can get your loan with just a click of your finger through the bank’s online application process.

  1. Go to the Maybank site and fill the online application form using your own email. Make sure you have duly signed the document and that the details are complete and accurate.
  2. Upload the required documents on the site.
  3. Wait for your loan to get approved by the bank staff.

 

Closing

Some FAQs for the Maybank home loan:

Which bank housing loan is the best in Singapore?

There is no one “best” home loan in Singapore; the better choice is always the policy that fits the current needs of whoever is applying. A certain loan offer might have the most competitive offers, but if it does not fit your needs, it will be for nothing.

Is Maybank a good bank for a mortgage?

If you are looking for a policy that has low introductory rates, then the Maybank home loan is a good mortgage option. However, there are other cheaper options since this loan increases its rate as soon as the lock-in period expires.

Which bank home loan is better?

There is no one answer to this question, as the bank home loan that fits your need will be the so-called “better” option.

Will mortgage rates go down in 2020 Singapore?

Because of the lockdowns imposed in response to the threat of COVID-19 that has severely affected the global economy, mortgage rates are expected to go down this year here in Singapore.

Choosing the perfect home loan for you can be hard, especially since there are too many options available. To make the most informed decisions, you can contact Loan Advisor Singapore. They are one of the most trusted loan advice institutions in the country, and they have already done back-breaking research on the options you can choose from in the market. Their home loan calculator makes sure that your salary can find the perfect products for your perfect booking or financing options.

You may contact them now through this LINK to help you get started on your home loan borrowing.

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