Is An Alliance Bank Housing Loan Right For Me?
Alliance Bank offers two home loan packages, starting with Conventional Home Loan, a semi-flexi package that allows you to make payment in excess of instalment amount to reduce the interest. Moreover, you can shorten your loan tenure by this exclusive Alliance house loan as the interest is based on the combination of debit balance of your home loan amount and the current account. Note that only the maintenance fee is waived when you sign up this Alliance house loan, you are still required to pay your stamp duties and legal fees.
Its marquee product however, is the SaveLink Home Loan which is a full-flexi home loan linked to a current account which will help reduce interest and shorten your loan period (if you make regular payments into the linked current account). Besides that, this Alliance housing loan gives you the flexibility to reduce loan principal. Both Alliance housing loan packages require setup fees of RM200. The major risk that you might face is your interest rate on this loan may change if there are any changes in the Base Rate (BR
). Another potential risk of this Alliance house loan is any withdrawal you made might increase loan interest, loan tenure and loan principal.
Alliance Bank Housing Loan has a lock-in period of 3 years, which is a common lock-in-period for many banks in. If you are planning to make an early settlement within the 3 years period – through property sale or refinancing
– you will incur a penalty of up to 3% on your outstanding loan amount. This applies to all Alliance housing loan products.
Alliance Bank can provide a margin of financing up to 90% + 5% including MRTA (Mortgage Reducing Term Assurance), else the maximum margin is at 90%. The MRTA policy can only be financed if it is purchased with Alliance Bank’s insurance partners. The Alliance housing loan products also come with a maximum loan period of 35 years (in accordance to the latest ruling by Bank Negara Malaysia) or up to age 70, whichever is earlier. The other feature of these Alliance housing loans is it allows you to top up borrowing when refinancing to consolidate other debts.
Both Alliance house loans require minimum annual income of RM24,000 and aged 21 up to 70 years old. Any nationalities can apply for the Alliance house loan.
To assist you with the calculation of your monthly Alliance Bank housing loan repayment, we have created a Alliance Bank home loan calculator for you. To begin using the Alliance Bank home loan calculator, all you need to insert will be the loan amount that you want to take and the loan period (maximum 35 years). The Alliance Bank housing loan calculator will then begin computing your loan instalments and you should ensure that your total loan instalments, including this Alliance Bank mortgage should not exceed 60% of your monthly net income to have a high percentage of success rate to get this home loan.
Alliance Bank Mortgage Packages
Alliance Bank comes with 3 mortgage packages to suit various individual needs in the form of Conventional Home Loan, SaveLink Home Loan and SaveLink Interest Payment Option. The key features of each package are highlighted by us for your comparison:
Is this a flexi package?
Conventional Home Loan
Basic term loan with optional overdraft facility
Allows for payment in excess of installment amount to reduce interest
SaveLink Home Loan
Flexi home loan linked to current account
Funds in linked account will reduce interest and shorten loan period
Details of Alliance Bank’s Flexi Home Loan Packages
Flexi home packages allow borrowers to make extra repayments every month in order to reduce their monthly interest charges. These packages come with requirements, fees and conditions that should be considered alongside their benefits.
||Conventional Home Loan
||SaveLink Home Loan
|Is a linked bank account required?
|Account Maintenance Fees
||RM10 per month
|Redrawal Terms and Conditions
||Redrawal facility setup fee of RM200
Am I Eligible for an Alliance Bank Housing Loan?
You are eligible for this mortgage if you are at least 21 years old and looking to get a minimum loan amount of RM100,000. Foreigners may apply subject to differentiated terms and a lower margin of financing.
What Documents Will I Need to Prepare?
If you have applied for an Alliance Bank mortgage, you will be asked to provide these supporting documents in order for the bank to process your application. These documents are listed below:
* Application Form
* NRIC / Identity Card
* Copy of Sales and Purchase or Booking Receipt or Letter of Offer from Developer
* Copy of Individual Title Deed
* Property Valuation Report (for completed properties)
* Latest 3 consecutive months of salary slips / vouchers
* Latest 6 consecutive months of commission statement
* Latest EPF statements (with 3 consecutive months or more transaction history)
* Latest EA form
* Latest 6 months Bank Statement
* Letter of Confirmation of Employment and Remuneration
Sounds Great! How Should I Proceed?
You can use the Alliance Bank home loan calculator to calculate your monthly repayments, based on your desired property value and loan amount. Once you are ready to apply, you can make a free enquiry through iMoney, and we will call you back. Applying for a home loan with iMoney is absolutely free of charge.
If you are not sure whether this home loan by Alliance Bank is your best option, click here
to compare other home loans in Malaysia.
Is it Easy to Repay my Alliance Bank Mortgage?
: Transfer funds from your Alliance Bank Savings or Checking accounts to make your payments online
: Pay your loans at any of the MEPS ATMs (over 5,000) nationwide
: Pay your loans through the Interbank GIRO fund transfer at the participating bank’s branch or through online banking
Standing Instruction Facility
: Automatic deduction from your bank account every month
Alliance Bank ATMs
: Transfer funds from your Alliance Bank Savings or Checking accounts to make your payment at all Alliance Bank branches
Express Payment machine
: Make a check or cash deposit at Alliance Bank branches
Payment by Mail
: Mail to Alliance Bank with your check and statement enclosed in an envelope
: Issue instructions to have your bank account deducted to pay for your home loan with your T-PIN
If you are looking for other home loans, you may also consider
CIMB Islamic Home Loan
: At CIMB Islamic, the mortgage rate starts from Base Rate (BR) 4.00%. It does come with the option of a flexi loan package and there is a maximum of 90% margin of financing. There is no lock-in period for this mortgage.
Maybank Islamic Home Loan
: The home loan rate from Maybank Islamic starts from Base Rate (BR) 3.20%. The option of a flexi loan package is available and there is a maximum of 90% margin of financing. There is no lock-in period for this home loan.
Standard Chartered Saadiq Home Loan
: Standard Chartered Saadiq offers a housing loan rate starting from Base Rate (BR) 3.67%. There is available the option of a flexi loan package and there is a maximum of 90% margin of financing. There is no lock-in period for this housing loan.