How to find a Good Mortgage
There seem to literally be hundred of mortgage programs out there so how do I know which one is best for me? Finding the good mortgage program to fit your needs and your financial goals can be difficult to do unless you are working with the "right" mortgage professional and asking the "right" questions. It is always a good idea to compare rates from several different banks. But there are several factors to keep in mind. The lowest rate isn't always the best deal.
Which mortgage program is right for me? This is a very common question asked by many consumers. There is no one answer fits all type response that can be given. Each and every individual person has their own specific financial situation and their own financial goals and dreams. With the number of mortgage programs out there to choose from being in the hundreds and maybe even the thousands, this can be a difficult decision trying to figure out what is going to be best for you.
Typically, there is 2 major types of mortgage in Malaysia mortgage market namely, Conventional loans and Islamic loans. You can check here for the difference between conventional financing and Islamic financing.
Some of the main factors that you will want to consider when choosing which mortgage loan is right for you are: how long will you live in your home, do you have any children attending college currently or within the next few years, is this a starter home, will you have a pre-payment penalty, are you expecting any new family members to be added to your family, how much do you have in liquid assets, are you self-employed or do you work for someone, how much longer until you plan on retiring, do you have enough money for retirement, do you have many other financial obligations besides a mortgage, do you own any other property, and many, many others. Answering these questions, or at least thinking about them before you are ready to finance a home mortgage loan can help to greatly improve your chances of finding the right mortgage loan to meet your demands.
A fixed rate mortgage (such as BBA Loan) is always going to provide the most stability in the long run, however since most Malaysian sell or refinance every 4 to 6 years, a fixed rate mortgage does not always make the most sense. An Conventional loans can provide a cheaper payment and a lower interest rate upfront for a certain number of years, but there is a lot more risk involved obtaining an Conventional loans because of the uncertainty of what will happen after the fixed rate period expires on the Conventional loans. Conventional loans are based on BLR floating. The higher the BLR go, your installment will increase as well.
The following is a list of lenders that you can shop from. We have listed them with their preference for borrowers as best we can tell and have included their choice of "tag line" wording. Obviously they all claim to have the lowest rates you need to judge for yourself to see if they really do. Best to check out several.