Malaysia Offers Most Borrower-friendly Mortgage In Asia-Pacific - Juwai IQI

KUALA LUMPUR, Dec 18 (Bernama) -- Malaysia is considered the most borrower-friendly market among six Asia-Pacific nations, ahead of Indonesia, Vietnam, Thailand, South Korea and Japan, according to international real estate technology group, Juwai IQI.

In a statement today, its co-founder and group chief executive officer, Kashif Ansari, said this helps homebuyers and homeowners build financial independence.

“It also adds stability and predictability to the home market. It is a huge net benefit for the country as a whole.

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“Because of Malaysia's strong financial system and regulatory environment, homebuyers pay less than half what buyers in Indonesia pay for their home loans,” he said.

He said that helps make Malaysia one of the most stable and borrower-friendly markets among comparable Asia-Pacific markets.

Kashif added that Malaysian borrowers also benefit from a level of transparency that is rare in Southeast Asia, which protects them from low teaser rates that can surge after three years and drive mortgage payments up by about 50 per cent, as observed in Thailand and Vietnam

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He said Malaysia is also unique because banks have to be transparent about how much they charge.

“Banks charge borrowers a premium above the Standard Base Rate. If one bank offers ‘SBR + 1.45 per cent’, while another promises ‘SBR + 2.0 per cent’, borrowers know their mortgage will be much less expensive with the former,” he explained.

At the same time, Kashif noted that many Malaysian first-time buyers enjoy full stamp duty exemptions, adding that under the latest budget, the government has extended the exemption for first-time buyers of homes priced up to RM500,000 until Dec 31, 2027.

-- BERNAMA