Tag Archives: Lock in Period

Understand the Lock in Period for Your Home Loan

When you are applying mortgage to finance your house, I urge you to take some time to read every words in the offer letter and ask questions for thorough explanations from banker before you sign it. One thing you should aware of is the lock-in period. It’s the period when you do an early settlement of your loan in full for the first few years of your loan tenure; the lender can impose an exit penalty charge which ranges from 2-3% of the principal loan amount.

lock in period

For instance, if your principal loan amount is RM300,000, when you choose to settle the loan or refinance it to other bank, the amount you need to pay for penalty is:

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Malaysia Housing Loan Packages

Do you know how much of the latest mortgage rate for our home loan packages? As we known, banks keep on revising the mortgage rate from time to time. Therefore, we cannot tell the exact mortgage rate to someone. Based on current bank housing loan offer, you can get the mortgage rate as low as Base Lending Rate (BLR) -2.3%. Noted: The current BLR rate is 6.3%.


What’s The Current Home Loan Packages?

Different bank will offer different home loan packages. From what I can see is you need to have lock-in period with the conventional packages whereas Islamic home loan packages mostly will not have lock-in period.

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