Yes, foreigners can get home loans in Malaysia. No, you will not get the same terms as a citizen. Malaysian banks lend to non-residents at lower loan-to-value ratios, sometimes shorter tenures, and with significantly more documentation requirements. But financing is available — and using it correctly is the difference between a mediocre cash-on-cash return and a strong one.
This guide covers every major bank's foreigner lending terms, the documents you need, and the specific challenges foreign applicants face.
Bank-by-Bank Foreigner Financing Terms
Not all Malaysian banks lend to foreigners. Of those that do, terms vary significantly based on your nationality, income source, existing banking relationship, and the property itself.
| Bank | Max LTV (Foreigner) | Max Tenure | Base Rate / Reference Rate | Best For |
|---|---|---|---|---|
| HSBC Malaysia | Up to 70% | 25 years | ~4.25-4.75% effective | Existing HSBC Premier clients; strong global banking relationship |
| Standard Chartered | Up to 70% | 30 years | ~4.30-4.80% effective | Expats with StanChart accounts in SG, HK, or other markets |
| OCBC Malaysia | Up to 70% | 30 years | ~4.25-4.75% effective | Singapore residents; strong SG-MY corridor processing |
| Maybank | Up to 60% | 30 years | ~4.50-5.00% effective | ASEAN nationals; largest branch network for servicing |
| CIMB | Up to 60% | 25 years | ~4.50-5.00% effective | Case-by-case; may suit applicants with CIMB regional accounts |
| Bank Islam | Limited | Case-by-case | Islamic profit rates | Foreigner lending is selective; primarily for Muslim applicants |
Rate notes: Effective rates shown are indicative ranges as of early 2026. Malaysian home loan rates are typically quoted as Base Rate (BR) + spread or Standardized Base Rate (SBR) + spread. The OPR (Overnight Policy Rate) set by Bank Negara Malaysia (BNM) directly influences these rates. See our home loan interest rate guide for current rate tracking and the full bank comparison.
LTV reality check: The "up to 70%" figure is the maximum. Not every foreigner gets 70%. Banks assess individually based on income stability, property type, location, and your overall credit profile. First-time foreign applicants with no Malaysian banking history often start at 50-60% LTV.
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Which Bank Should You Choose?
The right bank depends on your existing banking relationships and nationality.
HSBC Malaysia
Strongest for: Applicants who already hold HSBC Premier accounts globally. HSBC's internal cross-border verification is faster than any other bank. If you bank with HSBC in Hong Kong, Singapore, the UK, or mainland China, your relationship manager can coordinate directly with HSBC Malaysia.
LTV: Up to 70% for well-qualified applicants. HSBC Premier clients with strong global portfolios may get preferential treatment.
Tenure: Maximum 25 years. Loan must be fully repaid by age 65-70 (varies by applicant profile).
Processing time: 2-4 weeks for letter of offer once documents are complete.
Limitation: HSBC's minimum loan amount is typically RM500,000. For properties at the RM1M threshold with 60-70% financing, this is not an issue. But it rules out smaller purchases (relevant in states like Sabah or Labuan with lower foreigner thresholds).
Standard Chartered Malaysia
Strongest for: Expats with StanChart accounts in Singapore, Hong Kong, or other markets. Priority Banking clients get dedicated foreigner mortgage teams.
LTV: Up to 70%. Competitive for applicants with verifiable income from recognized employers.
Tenure: Up to 30 years. Processing: 3-4 weeks typically, faster for Priority Banking clients.
Limitation: Smaller branch network than Maybank or CIMB. Post-disbursement servicing may require visits to specific branches.
OCBC Malaysia
Strongest for: Singapore residents. OCBC's Singapore-Malaysia corridor is the most developed of any bank. Your OCBC Singapore relationship manager can initiate the Malaysian mortgage application. Income verification between SG and MY OCBC is internal — no external notarization needed.
LTV: Up to 70% for Singapore-sourced income applicants. May be lower for other nationalities.
Tenure: Up to 30 years.
Processing time: 2-3 weeks for SG applicants with existing OCBC accounts. Longer for other nationalities.
Unique advantage: OCBC can structure the loan such that your Singapore CPF or SRS funds are considered for debt-servicing ratio calculations (subject to conditions).
Maybank
Strongest for: ASEAN nationals. Widest branch network in Malaysia — useful for ongoing mortgage servicing.
LTV: Up to 60%. More conservative than HSBC, StanChart, or OCBC for foreign lending. Tenure up to 30 years. Processing: 3-5 weeks.
CIMB
Strongest for: Applicants with existing CIMB regional accounts (Singapore, Indonesia, Thailand, Cambodia).
LTV: Up to 60%. Tenure up to 25 years. Processing: 3-5 weeks. CIMB is selective — they prefer applicants from Singapore, Japan, South Korea, and the UK.
Documents Required
The document list is longer and more demanding than what Malaysian residents provide. Missing or incorrectly formatted documents are the primary cause of application delays.
Standard Requirements (All Banks)
| Document | Details |
|---|---|
| Passport | Valid for at least 12 months; copies of all stamped pages |
| Employment letter | From current employer, stating position, tenure, and salary. Must be recent (within 3 months) |
| Payslips | 6 consecutive months, most recent |
| Bank statements | 6 consecutive months showing salary credits and overall cash position |
| Income tax returns | From your home country, most recent filing year |
| Property SPA | Signed Sale and Purchase Agreement |
| Valuation report | From a bank-appointed or bank-accepted valuer |
| Booking receipt / deposit proof | Evidence of deposit payment |
Additional Documents (Situational)
| Situation | Additional Documents |
|---|---|
| Self-employed | Business registration, audited financial statements (2 years), company bank statements |
| Income in non-English language | Certified translations of all income documents |
| Chinese nationals (PRC) | Notarized documents from Chinese notary public (公证处) |
| Commission/bonus-based income | 2 years of payslips showing variable components; bank may average or discount variable income |
| Existing Malaysian property | Current loan statements, tenancy agreements (if rented) |
| MM2H holder | MM2H approval letter, Malaysian bank account statements |
Prepare your documents before you start property hunting. A missing payslip or an expired employment letter can delay your application by 2-4 weeks. Malaysian banks will not accept documents older than 3 months for employment letters or 6 months for tax returns.
The Challenges Foreign Applicants Face
Income Verification
This is the single biggest friction point. Malaysian banks cannot directly call your employer in Tokyo, London, or Shanghai to verify your salary. They rely on documents — and documents can be forged.
Banks mitigate this by:
- Requiring notarized or apostilled documents
- Cross-referencing bank statements with declared salary
- Checking employer legitimacy through company registries
- For large loans, sometimes requesting verification letters from your home country bank
If your income is in a non-MYR currency, the bank will convert at current exchange rates for debt-servicing ratio (DSR) calculations. Some banks apply a 10-20% haircut to foreign currency income to account for exchange rate risk. This means your effective borrowing capacity may be lower than your actual income suggests.
No Malaysian Credit History
Malaysian banks use CCRIS (Central Credit Reference Information System) and CTOS to assess credit risk. Foreign applicants have no records in either system. You are essentially a blank slate.
This is both good and bad. Good: no negative marks. Bad: no positive track record either. Banks compensate by requiring higher downpayments (lower LTV) and sometimes charging a slight rate premium.
Tip: If you have an existing banking relationship with a Malaysian bank's overseas branch, your cross-border credit history may be accessible internally. This is a meaningful advantage at HSBC, StanChart, OCBC, and CIMB.
Currency Risk
Your income is in SGD, USD, GBP, RMB, or JPY. Your loan is in MYR. Your rental income (if any) is in MYR. But your mental accounting is in your home currency.
If the MYR strengthens 10% against your income currency, your effective mortgage payment rises 10% in home currency terms. On a RM5,000/month mortgage, that is an extra SGD 150-200/month impact for a Singapore-based buyer.
Banks do not hedge this for you. Some sophisticated investors use forex forwards or natural hedging (matching MYR rental income against MYR loan payments). For most individual investors, the pragmatic approach is to ensure the property's rental income covers the mortgage payment in MYR terms — making the currency of your salary less relevant to ongoing cashflow.
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Islamic Financing for Foreigners
Islamic home financing is available to foreigners at selected Malaysian banks. You do not need to be Muslim to use Islamic financing products. The economic outcome is similar to conventional loans, but the legal structure differs.
Available Banks
| Bank | Islamic Product | Structure | Foreigner LTV |
|---|---|---|---|
| Maybank Islamic | HouzKEY / Home Financing-i | Musharakah Mutanaqisah (diminishing partnership) | Up to 60% |
| CIMB Islamic | Property Financing-i | Tawarruq (commodity Murabahah) | Up to 60% |
| HSBC Amanah | Home Financing-i | Musharakah Mutanaqisah | Up to 70% |
| Bank Islam | Home Financing | Various Shariah structures | Limited foreigner lending |
How Islamic Financing Works
Musharakah Mutanaqisah (MM): Bank and buyer jointly purchase the property. You buy out the bank's share over time through monthly payments. No "interest" — a profit rate functions similarly. See our MM explained guide.
Tawarruq: The bank buys a commodity, sells it to you at a markup, and you repay in installments. The property serves as security. See our Islamic vs conventional comparison.
Why Choose Islamic Financing as a Foreigner?
- Rate lock. Islamic profit rates are often fixed for longer periods, providing payment certainty.
- Shariah compliance. Required for Muslim investors.
- Late payment treatment. No compound interest on arrears (prohibited under Shariah).
- Same LTV. Islamic and conventional products at the same bank offer identical LTV to foreigners.
Worked Example: RM1.5M Condo Purchase
Let's run the full numbers for a foreign buyer purchasing a RM1.5M condominium in Kuala Lumpur with bank financing.
Purchase Costs
| Item | Amount (RM) | Notes |
|---|---|---|
| Property price | 1,500,000 | Above KL's RM1M foreign threshold |
| Stamp duty (8% foreigner rate from 2026) | 120,000 | 8% flat on residential for foreigners (was 4% prior to 2026) |
| Legal fees (SPA) | ~15,000 | Based on scale fees |
| Legal fees (loan agreement) | ~12,000 | Based on scale fees |
| Valuation fee | ~3,000 | Bank-appointed valuer |
| State consent fee | ~15,000-30,000 | 1-2% of purchase price |
| Agent commission | 0 | Typically paid by seller for sub-sale |
| Total upfront costs (excl. downpayment) | ~165,000-180,000 | ~11-12% of purchase price |
Financing Scenario: 60% LTV
| Parameter | Value |
|---|---|
| Loan amount | RM900,000 (60% of RM1.5M) |
| Downpayment | RM600,000 (40%) |
| Interest rate | 4.75% (effective) |
| Tenure | 25 years |
| Monthly repayment | ~RM5,100 |
| Total interest over 25 years | ~RM630,000 |
Total cash needed upfront:
| Component | Amount (RM) |
|---|---|
| Downpayment (40%) | 600,000 |
| Stamp duty | 120,000 |
| Legal fees | ~27,000 |
| Valuation | ~3,000 |
| State consent | ~22,500 |
| Total | ~RM772,500 |
You need approximately RM772,500 in cash to complete this purchase. That is 51.5% of the property price. This is the reality of foreign property purchases in Malaysia — even with bank financing, you need more than half the property value in cash.
Cashflow Analysis
Assuming the property rents at RM5,500/month (4.4% gross yield on RM1.5M):
| Monthly Item | Amount (RM) |
|---|---|
| Rental income | 5,500 |
| Mortgage payment | (5,100) |
| Maintenance fee | (500) |
| Assessment (monthly equivalent) | (150) |
| Insurance | (100) |
| Property management (8%) | (440) |
| Net monthly cashflow | RM210 |
Before tax. As a non-resident, rental income tax is 30% on net rental income after allowable deductions (maintenance, assessment, loan interest, insurance). The tax bite is substantial though non-residents can deduct direct property expenses before applying the 30% rate.
After-tax cashflow (non-resident): After deducting allowable expenses and applying the 30% rate on the remaining net rental income, the property is likely cashflow-negative.
This demonstrates why tax residency status and accurate cashflow projections matter enormously. Use our cashflow calculator to model your specific scenario.
Alternative: Financing From Your Home Country Bank
Some regional banks finance Malaysian property purchases from overseas. DBS, UOB, and OCBC in Singapore all offer overseas property loan products for Singapore residents buying in Malaysia.
| Bank | Product | Loan Currency |
|---|---|---|
| DBS (Singapore) | Overseas Property Loan | SGD |
| UOB (Singapore) | Overseas Property Financing | SGD |
| OCBC (Singapore) | Cross-border financing | SGD or MYR (via OCBC Malaysia) |
Advantages: Familiar bank, no translated documents, existing credit history applies. Disadvantages: Full currency exposure if loan is in SGD, Singapore TDSR limits apply, LTV typically 50-60%, and rates may be higher than Malaysian bank rates.
General rule: If you have a Malaysian bank relationship, finance in MYR. If your banking is entirely Singapore or Hong Kong-based, home country financing is simpler but costlier.
Debt-Servicing Ratio: The Hidden Constraint
Malaysian banks cap your Debt-Servicing Ratio (DSR) at 60-70% of gross monthly income for foreigners. All existing debt payments plus the new mortgage must fall within this limit.
The critical wrinkle: many banks apply a 10-20% haircut to foreign currency income for DSR calculations. If you earn RM30,000 equivalent in SGD, the bank may assess you at RM25,500. On a RM30,000 income with RM5,000 existing debts, that haircut alone reduces your maximum borrowing capacity from RM2.8M to RM2.27M — a 19% drop.
Ask your bank upfront whether they discount non-MYR income for DSR purposes. This single factor can determine whether your loan is approved or rejected.
Tips for Getting Approved
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Open a Malaysian bank account first. Even if it is just a savings account. Having 3-6 months of transaction history at the lending bank improves your application.
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Apply to 2-3 banks simultaneously. Approval is not guaranteed. Parallel applications increase your chances and give you leverage to negotiate terms.
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Use the same bank group. If you bank with OCBC Singapore, apply to OCBC Malaysia. Internal referrals are processed faster and with fewer documentation hurdles.
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Prepare documents before you need them. Get employment letters, notarizations, and translations done before signing the SPA. Post-SPA, you are on the clock.
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Show liquid assets. Banks want to see that you can cover 6-12 months of mortgage payments from savings, independent of ongoing income. A strong savings position compensates for the lack of local credit history.
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Consider a larger downpayment. If the bank offers 60% LTV but you can put down 50%, the lower loan amount reduces the bank's risk and may get you a better rate.
Further Reading
- Can Foreigners Buy Property in Malaysia? — Full foreign buyer guide
- Islamic Financing for Foreign Investors — Shariah-compliant options in detail
- Home Loan Interest Rates 2026 — Current rate environment
- Best Home Loan Comparison — Side-by-side bank comparison
- Cashflow Calculator — Model your investment returns