Housing Loan

Housing

A housing loan is financing from a bank to buy a home, repaid over a long tenure with interest or, for Islamic financing, a profit rate. Banks assess your income, commitments, and credit record, then approve a margin of financing that is a percentage of the property price, so you usually pay the balance as a down payment. First-time buyers sometimes get higher margins under special schemes. Repayment can use fixed or floating rates tied to a base rate. Missing payments risks the bank foreclosing on the property. Rates, margins, and eligibility differ by bank and are subject to the latest rules.

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Related terms

PR1MARUMAWIPMOT (Memorandum of Transfer)Stamp DutySale & Purchase Agreement (SPA)Strata vs Landed PropertyQuit Rent & Assessment