Choosing the right housing loan is crucial when buying a home in Malaysia. Affin Bank and CIMB Bank offer competitive loan packages, but which is best for you? In this article, we’ll compare the key features of both Affin Bank and CIMB Bank housing loan options, helping you make a more informed decision.
Overview of Affin Bank Housing Loan
Affin Bank provides a flexible housing loan that caters to various homebuyer needs. The loan structure is designed to give customers more control over their monthly repayments and has a few standout features.
Loan Margin:
Affin Bank offers a financing margin of up to 90% for home purchases. Additionally, there is a 5% margin for related expenses such as legal fees and stamp duties.
Interest Rates:
The bank typically offers a floating interest rate based on the Standardized Bank Rate (SBR), with effective lending rate range from 4.2% to 4.7%, depending on the loan amount.
Loan Tenure:
Affin Bank provides flexible loan tenure, allowing borrowers to repay over 35 years or until the borrower reaches 70, whichever comes first.
Early Settlement Option:
Customers can make early settlements without facing hefty penalties, offering more financial freedom.
These features make Affin Bank’s housing loan attractive for first-time homebuyers who want flexible repayment options.
Overview of CIMB Bank Housing Loan
CIMB Bank is one of Malaysia’s leading banks. It offers a variety of housing loan packages with competitive rates. Its product focuses on affordability and accessibility for different groups of homebuyers.
Loan Margin:
CIMB Bank also provides up to 90% financing for home purchases, with an additional 5% to cover related costs.
Interest Rates:
CIMB Bank’s floating rates are tied to the SBR, similar to Affin Bank. The effective interest rate margin is competitive: 4.15% (SBR + 1.15%).
Loan Tenure:
Borrowers can repay the loan over a maximum of 35 years or until they reach 70, whichever comes first.
Flexibility with CIMB Flexi Home Loan:
One of CIMB Bank’s key offerings is its Flexi Home Loan, which allows borrowers to make additional payments toward their loans. This reduces the overall interest payable and shortens the repayment period.
CIMB Bank’s housing loan is ideal for those prioritising long-term savings through flexible repayment.
Interest Rates Comparison
Affin Bank and CIMB Bank offer floating interest rates, but their margins differ slightly. Here’s a breakdown of how they compare:
Affin Bank: 4.2% – 4.7% (SBR + Spread)
CIMB Bank: 4.15% – 4.7% (SBR + Spread)
CIMB Bank offers slightly lower starting rates, making it a more attractive option for those seeking immediate cost savings.
Loan Tenure Comparison
Both financial institutions offer a maximum loan term of 35 years or until the borrower reaches the age of 70, whichever comes first. This long tenure allows homebuyers to spread their repayments over a longer period, making monthly installments more manageable.
Unique Features
Affin Bank
- No Lock-In Period: Affin Bank’s housing loan has no strict lock-in period, meaning borrowers can refinance their loan or settle it earlier without facing high penalties.
- Loan Restructuring Options: The bank offers restructuring options in case borrowers face financial difficulties, providing a safety net during challenging times.
CIMB Bank
- CIMB Flexi Home Loan: This product reduces borrowers’ loan interest by depositing extra cash into the linked current account. The additional amount reduces the principal loan, lowering interest charges over time.
- Online Loan Management: CIMB Bank offers a user-friendly platform where customers can easily manage their loans, check balances, and make extra payments.
Application Process
Both banks have a straightforward loan application process. You can apply online or visit their branches to begin the process. Typically, the required documents include:
- NRIC or passport
- Proof of income (pay slips, bank statements)
- Land Title / Strata Title of the property
The loan approval process usually takes between 3 to 7 working days for both banks, depending on the completeness of your documents.
Which is Best for You?
Affin Bank is a good option with no lock-in period and loan restructuring for added security if you want flexibility and early repayment without penalties. For long-term interest savings, CIMB Bank’s Flexi Home Loan allows extra payments to reduce your loan balance, offering significant cost savings over time.
Affin Bank and CIMB Bank offer strong housing loan options, with slight interest rates and repayment flexibility differences. Your choice will depend on your financial goals—whether you prefer more freedom in managing repayments or aim to reduce your loan interest over time. Understanding each institution’s various services will be the key to making the smart, informed decision in purchasing a house. This can help you in choosing an appropriate loan that matches your needs.
Need assistance with choosing the right housing loan? Contact Chu Yao today for expert advice and personalized recommendations tailored to your needs!
(Sources: Affin Bank and CIMB Bank official websites, 2024.)