Hong Leong Bank: Home Financing

If you are buying a new home or refinancing, Hong Leong Bank has a special Employee Home Financing Package for you.

The Bank is offering attractive interest rates for completed and uncompleted residential property.

For more information, please email the following colleagues at the Bank:

Anson Chan VYChan@hlbb.hongleong.com.my
Irene Tan IreneTanAK@hlbb.hongleong.com.my
Freddy Yap FHYap@hlbb.hongleong.com.my

Below are some FAQs for reference. In any case, you are to be guided by information and terms and conditions of the bank.

How will I know if I am eligible for a home loan?

You will need to submit some basic documentation for the bank to check on your eligibility.

What documents will I need to submit to check my eligibility?

You will only need to submit two documents for the bank to determine your eligibility for a loan: a copy of your IC and a copy of the property purchase form.

How much loan can I take?

In general, how much loan a bank will approve to you depends on four main factors:

1. Your individual risk profile;

2. Your Debt Servicing Ratio (DSR);

3. The property’s valuation;

4. The maximum Loan-to-Value (LTV) ratio available to you.

What are the Loan-to-Value (LTV) guidelines?

Based on the LTV guidelines, you may get a loan of up to 95% of the net property value if this is your first or second residential property and you do not have more than one (1) outstanding housing loan account.

You may only get a loan of up to 70% of the net property value if this is your third or more residential property with two or more outstanding housing loan accounts.

What range of Debt Service Ratio (DSR) will make me eligible for a home loan?

In general, your DSR should not exceed 85%. This is part of prudent lending measures to ensure that you are able to service all your commitments.

The DSR computation shall be determined based on net income by adding up all your outstanding debt repayment obligations from banks and non-banks and the new financing installment and dividing it by your net income (after statutory deductions such as tax, EPF, SOCSO).

What types of debt obligations are taken into account for the DSR calculation?

In general, the DSR calculation will include:

1. Term loans – Monthly installments on term loans (mortgage/hire purchase/personal loan);

2. Overdraft – Monthly interest charged calculated on the outstanding balance;

3. Credit cards – 5% of the credit card outstanding balance;

4. Share finance facilities – Monthly interest charged calculated on the outstanding balance;

5. Charge card – 100% of the outstanding balance at the point of assessment.

Note that if any of these loans are joint loans, only your share of the loan will be taken into consideration. For example, 50% of the obligation for a two-borrower loan and 33.33% for a three-borrower loan.

I am a High Net Worth Customer (HNWC). Does all this DSR and LTV still apply to me?

HNWCs who have total net personal assets exceeding RM1 million may get some flexibility that considers their deposits, assets and/or investments in assessing their ability to repay the financing, as per the guideline on responsible financing.

However, DSR would still be computed for HNWCs.

How do I show proof of my net worth?

You can prove your net worth with documents including:

Savings/Current Account Balances – Bank statement;

Fixed Deposit – Fixed deposit receipt/bank statement;

Unit Trust/Shares – Unit Trust statement/Certificate or Shares CDS statement;

Unencumbered property – Copy of title without encumbrances;

EPF – Latest EPF statement.

For HNWCs, how can I show proof of other income?

Other acceptable forms of income include:

Interest on Fixed Deposits – Copies of certificates/bank statements;

Rental Income – Copy of a valid tenancy agreement or renewal letter supported by three months rental crediting evidence and latest utility bill;

Director’s Fee; or,

Unit Trust.

Hong Leong Bank: Home Financing

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