Why So Difficult For Us To Get A Home Loan In Malaysia?

Hi, there could be few reasons why you are in the current state.

1. The banker that handle your loan may be inexperience in handling your case. you may get in touch with more bankers and compare their service. Example in regard of requesting offer letter from the company. This request could be replace with your company drafting a new letter stating your work history and information needed by the bank.
2. Different banks have different policy and appetite in regard to foreigner loan. Some banks have lower margin or already used up their allowance quota. This is even more so if the bank you applied your loan with is a foreign bank, the margin most probably will be lower than local bank.
3. If you have assets that is debt free (example like trust deed, cash deposit, property fully paid, insurance policy), you can utilize it to negotiate with the bank to secure your loan.

Hope this help.

Is the property under construction? Or secondary market? If it's under construction house, just ask agent to introduce u to panel banks. If it's secondary then check with few bank valuators, may be the price is more than market value.

I am an outsourced loan advisor residing in Penang. My opinion is that if you have a cousin or relative staying in Malaysia, you can use their name to apply for the loan, and the settlement can be arranged between both of you. I hope this message can help you. For any further inquiries, feel free to message me.

@JasonLee_WMC

Hi Jason.  Frankly, I have been put through the ringer over a very small loan in my opinion.  Yes, I get it that I am a foreigner but at the same time what we earn in one year practically equals the condo cost!!!!!  My credit is nearly perfect!!!!  I honestly don't see how you say I can use a relative there.  Every single amount is scrutinized as to where did so and somoney come from.  Some bank actually asked me for our offer letters.  Uh, honey, that was over 20 years ago and what does an offer letter really do for us or you 20 years later????  Unbelievable....

I understand your situation, and I also recognize that your credit scoring is good. However, the reason the bank requires your offer letter is to assess your employment status in the United States and consider issues of job stability, among other things. Banks tend to be cautious in this regard. When I suggested that your family in Penang could help you apply for the loan, it's because if their employment and income situation is stable in various aspects, they might have an easier time getting approved. Additionally, negotiating with you and your family about money matters might be easier (this is a somewhat tricky approach).

Again, what does an offer letter from over 20+ years say about anything today?   Nothing.  All your stupid banks need to see is that I have enough CASH in in either liquid form or 401k or stocks that easily would cover the cost of the condo itself if it comes to that.  No wonder your country is not doing so well.  You guys worry about the wrong people.

    Again, what does an offer letter from over 20+ years say about anything today?   Nothing.  All your stupid banks need to see is that I have enough CASH in in either liquid form or 401k or stocks that easily would cover the cost of the condo itself if it comes to that.  No wonder your country is not doing so well.  You guys worry about the wrong people.
   

    -@VWC

Loans are expensive. If you have the cash, just use that. It's cheaper and less stressful.

Is the house actually worth what you intend to pay, or did the seller see an inexperienced foreigner with a foreign idea of prices coming?

Finally, if Malaysian banks are stupid, get the loan from a US bank.

        Again, what does an offer letter from over 20+ years say about anything today?   Nothing.  All your stupid banks need to see is that I have enough CASH in in either liquid form or 401k or stocks that easily would cover the cost of the condo itself if it comes to that.  No wonder your country is not doing so well.  You guys worry about the wrong people.        -@VWC

Loans are expensive. If you have the cash, just use that. It's cheaper and less stressful.
Is the house actually worth what you intend to pay, or did the seller see an inexperienced foreigner with a foreign idea of prices coming?
Finally, if Malaysian banks are stupid, get the loan from a US bank.
   

    -@Fred  Well, the loan serves as a risk reducer to me since in theory I could walk from the condo and the country if something major happens.  My money also can earn more than what the Malaysian lenders quoted me (around 4%?).  I was able to negotiate down the price of the condo to what I feel is fair.  This is my retirement home now, so any enjoyment I get from it is all I want really so it is priceless to me.  No, can't get a US loan for a foreign property and why when interest rates are high anyway?

No, can't get a US loan for a foreign property and why when interest rates are high anyway?

    -@VWC

Does that mean US banks are stupid in the way you say Malaysian banks are because you can't get a loan?

Many Malaysians, quite rightly, take exception to foreigners insulting their country.  Perhaps a little thought before posting insults would be a good idea.

As for interest rates, I gather that's a way to control inflation, but is also connected to the international currency markets. The worldwide shift away from the US Dollar is causing a bit of a problem as countries dump Dollars to prop up their own currency and the US treasury fights back.

India just (allegedly) did that one, as a good number of other countries have.

    No, can't get a US loan for a foreign property and why when interest rates are high anyway?    -@VWC

Does that mean US banks are stupid in the way you say Malaysian banks are because you can't get a loan?
Many Malaysians, quite rightly, take exception to foreigners insulting their country.  Perhaps a little thought before posting insults would be a good idea.

As for interest rates, I gather that's a way to control inflation, but is also connected to the international currency markets. The worldwide shift away from the US Dollar is causing a bit of a problem as countries dump Dollars to prop up their own currency and the US treasury fights back.
India just (allegedly) did that one, as a good number of other countries have.
   

    -@Fred  First of all, I was insulting the banks' lending departments, not the Malaysian people.  How would you suppose one lending rep couldn't clearly see or add to know that I made more than my wife?  Rookies....

Well, the loan serves as a risk reducer to me since in theory I could walk from the condo and the country if something major happens. 

How would you suppose one lending rep couldn't clearly see or add to know that I made more than my wife?  Rookies....

Rookies, or they are experienced and have guessed your stated intent to do a runner if things go wrong?

If you are over-paying, the bank might well lose out if you run away.

Insults from foreigners, even ones aimed at specific people, are commonly seen as insulting the whole country.