Private Loan Application Process

You are free to appoint your own bank/finance institution for your loan application or you can choose from our panel of appointed banks if you qualify.

Loan Processing Sequence

  • Submission of loan application form with the necessary documents.
  • Interview by bank/finance institution.
  • Letter of Offer upon approval from bank/finance institution.
  • The Letter of Offer fully signed by you as acceptance of the offer and returned to the bank/finance institution with a copy to the developer.
  • Bank/finance institution ‘s letter of instruction to their solicitor to prepare the loan document which may be either:
    1. Deed of Assignment and Loan Arrangement (for Strata Units); or
    2. Memorandum of Transfer Form 14A and Charge Form (Landed units with individual titles).
  • Letter from bank/finance institution advising you to execute loan documents at solicitor’s office.
  • Loan documents forwarded to bank/finance institution for execution.
  • Loan documents returned to solicitors who will forward to developer for execution of Memorandum of Transfer.
  • Executed loan documents returned to solicitor for stamping and registration. Stamped loan documents forwarded to bank/finance institution for safe keeping. A copy each is given to purchaser and developer.
  • Bank/finance institution will release payments to developer progressively in accordance to the Third Schedule of the Sale and Purchase Agreement upon receipt of our invoice.

The documents required to apply for a housing loan are:

  • Original copy of the Sale and Purchase Agreement
  • Copy of the title deed (if available)
  • Photocopy of your IC
  • A copy of your last 3 month’s pay or your last 6 month’s bank statement (if self-employed)
  • Letter of confirmation on income and years of service from your employer
  • A copy of Income tax return/EA form for the past 3 years

Flexible Home Repayments

Most banks offer different flexible loan repayments that’s suited to your financial standing. Feel free to speak to your bank officer and find out more about the following loan repayments:

  • Graduate payment scheme

    This scheme is catered for fresh graduates as it allow a lower instalment payment in the beginning that will gradually increase over time. You can also consider this scheme if you need to allocate more funds for other purposes in the beginning of your loan payments.

  • Prepayment flexibility

    Some banks also allow you to make prepayments or extra payments that will save you considerable interest charges over time, on condition your monthly payments are promptly paid.

  • Letter of Offer

    Once you have selected your desired unit(s), a letter of offer will be issued and a 10% down payment is required. This letter of offer will include the particulars of the purchased property.

  • Partial prepayment of the outstanding loan

    This scheme allows the borrower to make partial prepayments if they have extra cash that will effectively reduce interest charges in the long run, especially if prepayment is made during the early years of the loan tenure.

For more information about different housing loans, please visit

Government Loan Application Process

If you are a Government servant, please consult your Departmental Head on the requirements for a government housing loan or you can refer to this website for more information.

As a general guideline, the following documents are required for your loan application:

  • Application form to be completed in detail.
  • Letter of Confirmation and recommendation from your Departmental Head.
  • Processing fees (RM1.00 for every RM1,000.00 of loan amount).
  • Borang VII (Form VII) – Declaration from the borrower giving consent to the Federal Government to deduct from his/her salary the loan instalments (inclusive of interest).
  • Copy of title deed.
  • Lampiran A – Declaration from the developer consenting to a registrar’s caveat.
  • Form XIV – To be endorsed by the developer and the borrowers’ solicitors.
  • Solicitors’ declaration – confirmation of stakeholder and finalisation of loan documents.
  • Borang Akuan SPP 21/86 – Lampiran IV.
  • Letter to the housing loan unit confirming the ability to settle the difference between loan and purchase price (if it is not a 100% loan).
  • Copy of Power of Attorney, if the agreement has been attested by the Power of Attorney.
  • Certificate of Fitness – for completed house.
  • The progressive payments will be released by the Housing Loan Division only when the title (landed unit) and loan agreement cum assignment (strata unit) has been registered at the land office and the High Court respectively.
Note: The above mentioned format is just a general guide and might be changed by the government housing loan unit. For final confirmation, please check with:

Housing Loan Division

No 9, Ministry of Finance Complex,
Perdana Avenue, Precint 2,
Federal Government Administrative Centre,
62592 Putrajaya
Tel : 03 – 8880 2000/2200/2400/2600
Fax : 03 8880 2440