When choosing a housing loan in Malaysia, Public Bank and Maybank are two of the most trusted financial institutions. Both offer competitive loan packages, but comparing the details is important to finding the best option for your financial needs. Let’s explore the major distinctions between Public Bank and Maybank housing loans together. This article will cover interest rates, repayment terms, eligibility criteria, and customer support & loan processing.
Interest Rates
Interest rates play a crucial role when selecting a housing loan. Even a slight change in interest rates may greatly affect a credit’s repayment length.
Public Bank Interest Rates
Public Bank offers a competitive spread on top of the Standardized Bank Rate (SBR). In 2024, the SBR is at 3.00%. Public Bank’s housing loan interest rates typically float above this SBR. They offer loans with a margin of financing up to 90% of the property value.
Maybank Interest Rates
Maybank also follows a floating rate system based on their SBR, which in 2024 is 3.00%, similar to Public Bank. It also provides up to 90% financing and additional options such as insurance packages and house renovation packages bundled with the loan.
Loan Packages and Flexibility
Different borrowers have different needs, and flexibility in loan packages can make a big difference in choosing the right bank.
Public Bank Loan Packages
Public Bank offers flexible housing loan options. Their key offering is the PB Flexi Home Loan, which provides repayment flexibility by allowing borrowers to make extra payments to reduce interest and loan tenure. This loan package is popular among borrowers who want more control over their monthly payments and overall loan balance.
Maybank Loan Packages
Maybank’s MaxiHome Loan is the bank’s standout package. Similar to Public Bank’s Flexi loan, it allows borrowers to make extra payments without penalty, thus reducing the loan balance faster. Maybank’s Islamic Home Loan option also offers Shariah-compliant financing, providing a flexible solution for borrowers looking for interest-free loans. The Maybank Islamic Home Loan is based on the concept of Bai’ Bithaman Ajil (BBA), a sale-based contract where payments are fixed for the tenure.
Loan Tenure and Margin of Financing
Loan tenure and the margin of financing are two important aspects of housing loans. These factors determine how long you’ll repay your loan and how much you can borrow relative to your property’s value.
Public Bank Loan Tenure
Public Bank offers housing loans with repayment periods of up to 35 years or until the borrower turns 70, whichever occurs first. This gives borrowers plenty of time to repay their loans, significantly younger applicants. Public Bank offers a margin of financing of up to 90%, which can be increased by including insurance.
Maybank Loan Tenure
Maybank also offers loan tenures of up to 35 years or until the borrower turns 70. This tenure is in line with industry standards, giving borrowers repayment flexibility. Unlike Public Bank, Maybank’s margin of financing is also up to 90% plus additional loan for house renovation package, depending on the borrower’s eligibility and financial situation.
Eligibility Criteria
Both banks have similar eligibility requirements, but it is always a good idea to know the specific conditions before applying for a housing loan.
Public Bank Eligibility
Applicants must be at least 21 years old to be eligible for a Public Bank housing loan. The borrower’s income and credit history are key factors in determining the loan amount and interest rate offered. Public Bank typically requires a minimum income of RM3,000 per month for salaried workers, with stricter criteria for self-employed individuals.
Maybank Eligibility
Similarly, Maybank requires applicants to be at least 21 years old. The income requirement for Maybank housing loans is also RM3,000 per month, which can vary depending on the loan package and the applicant’s financial profile. Maybank has been noted for having slightly more lenient approval criteria than other banks, but creditworthiness remains a major factor.
Customer Support and Loan Processing
When deciding between Public Bank and Maybank, consider the quality of customer service and the ease of the loan application process.
Public Bank Customer Support
Public Bank is known for its prompt and efficient loan processing. On average, Public Bank takes around 2 to 3 working days to process a housing loan application. You may contact their customer care on various platforms like telephone, email, and physical branches in Malaysia.
Maybank Customer Support
Maybank also offers efficient loan processing, with approval typically taking 2 to 4 working days. Maybank’s extensive branch network and online loan application system make it convenient for borrowers to track their loan status. The bank has strong customer support and a digital presence, including apps that allow users to monitor their loan balance and repayment schedules.
Public Bank and Maybank both offer solid housing loan options. Compare their interest rates, loan packages, and customer service to choose the best fit for your needs. Do consider your financial situation and long-term goals before committing to a loan.
Ready to secure your dream home? Contact Chu Yao today for expert advice and personalized loan options to meet your needs!
(Sources: Public Bank, Maybank, Bank Negara Malaysia (2024))