Malayan Banking Bhd (Maybank) is targeting to provide RM200 million in financing for properties by Malaysian investors in Sydney, Perth and Singapore this year under its Overseas Mortgage Loan Scheme.
The scheme was introduced following a strong demand from customers for mortgages that cover other popular locations.
In a statement today, its Deputy President and Head of Community Financial Services Datuk Lim Hong Tat said this scheme would help the bank achieve its home financing growth target of 13 per cent year-on-year in the current fiscal year.
“Malaysians today are savvy investors and make up a growing portion of property investors in Australia and Singapore.
“There is a distinct need to provide hassle-free financing options for this segment of customers who would otherwise face more inconvenience and added expenditure in arranging for financing from banks in these foreign markets,” he added.
Among the benefits that customers will enjoy are relief from currency fluctuations and assistance with the necessary regulatory approvals in the country for the financing facility.
The new mortgage facility is being offered for properties that are completed or off-the-plan, and can be for own occupation or for investment purposes with financing options of term loan, overdraft, or a combination of both.
Since the launch of the Overseas Mortgage Loan Scheme in 2011, total financing given out has reached RM720 million, with 90 per cent covering properties in London while the balance was for Melbourne purchases.
Maybank is the first Malaysian Bank to offer ringgit loans for overseas properties when it introduced the Overseas Mortgage Loan Scheme for London properties in 2011, followed by Melbourne properties in 2012.