Basic term VS semi flexi VS full flexi loan: Know the difference
Want to learn more about the different housing loans available in Malaysia? Here is a quick run-down of the different home financing products – basic term, semi flexi and full flexi loan – being offered by banks to aspiring home buyers.
Congratulations future homeowner on your next big life decision. Buying a new home can be daunting, especially if you’re unsure about the different types of home loans available.
In Malaysia, housing loans can be divided into three main categories: Basic Term Loan, Semi Flexi Loan, and Full-Flexi Loan. There is also another option, which is the Islamic housing loan . Most of the property loans in the market are variable interest rate loans, whereby the interest rate is tied to the base rate (BR) of banks.
You may think that the loan package with the lowest home loan interest rate might be your best bet, but that may not necessarily be the case. We’ve listed the pros and cons of all four different home loans to help you select the best home loan that suits your purchasing needs.
This is the most no-frills, conventional type of home loan in Malaysia. Most people go for this type of loan due to its simplicity. A basic term loan generally means that you will pay a fixed amount of instalment throughout your loan term, without having the flexibility to reduce the loan interest at any point in time.
Pros of basic term loan
With a basic term loan, you have a fixed monthly instalment amount to be paid over the loan term. For example, let’s say your monthly loan instalment is RM1,000 for a 30-year loan tenure.