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.
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:
RM300,000 x 3% = RM9,000
Nowadays, the lenders will offer you a lock in period which is commonly ranges from 3-5 years at the time of application. So, you should make your clear decision. If you would like to sell your property in less than 5 years, then you might want to consider a package that does not require a long duration of lock-in period or none at all. Also, it would be great if you intend to refinance your home loan within the next few years.