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Mortgage Loan Info Centre
Effective 2 Jan 2015, the Base Rate (BR) will replace the Base Lending Rate (BLR) as the main reference rate for new retail floating rate loans for individual customer.
The objectives:
- Promote informed decision making
- Encourage more disciplined and efficient practices in the pricing of retail loan
- Better reflect changes in the cost of funds arising from monetary policy or market funding conditions
Base Rate is made up of 2 parts, our benchmark cost of funds (COF) and the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia. Our benchmark COF now reflects the cost of raising new funds in prevailing market funding conditions based on the 3-month KLIBOR as well as customer deposit rates.
| Before 2 Jan 2015 | From 2 Jan 2015 |
|---|---|
Base Lending Rate Loans extended prior to 2 January 2015 continue to be referenced against the Base Lending Rate (BLR) or Islamic Financing Rate (IFR) until their maturities. |
Base Rate Effective 2 January 2015, a new reference rate known as the Base Rate (BR) / Islamic Base Rate (IBR) will be used for new floating rate loans / financing facilities for individual applicant. |
Effective on 2 January 2015
The move to BR does not affect Effective Lending Rates Standard Housing Loan’s Effective Lending Rate: |
||
|---|---|---|
Terms |
Conventional |
Islamic |
Loan Amount Loan Tenure Lock-in Period Effective Lending Rate |
RM350,000.00 30 Years NIL 3.50% |
RM350,000.00 30 Years NIL 3.35% |
- Compare the effective lending rates quoted by different financial institutions before taking out a new loan.
- Ask for a Product Disclosure Sheet (PDS) providing you with the effective lending rate and total repayments amounts for the loan/financing facilities you plan to take out.
- Ask your financial institution to explain the factors which may lead to a change in the Base Rate.
- Your monthly repayment amount will increase or decrease when there is a change in the Base Rate.
- You should also assess whether you can continue to afford the loan repayment if the lending rate increases in future.
Mortgage (Individual)
| Description / Service | Charges / Fees* |
|---|---|
Hong Leong MortgagePlus i. Set up fee ii. Monthly maintenance fee |
RM200.00 RM10.00 |
Withdrawal of Advance Payment Fee |
RM50.00 per request |
Redemption Statement |
RM50.00 applicable to house or home financing (for individuals) |
Letter of confirmation for EPF withdrawal Online confirmation for e-Pengeluaran |
RM20.00 per account/request |
Security Document Retrieval fee (request for photocopy) |
RM2 per page, min RM10 |
Additional loan statement i. Up to 1 year
ii. More than 1 year |
RM10.00 per request RM2.00 per page
RM10.00 per request RM5.00 per page |
Request for pricing variation |
0.1% of outstanding balance, subject to minimum of RM100.00 and a maximum of RM200.00 |
Termination fee for cancellation of loan prior to loan disbursement |
RM2,000.00 |
Late payment charge |
1% p.a. will be additionally levied on any amount in arrears, from the time of default until the time such amount(s) in arrears are paid |
Stamp Duties |
As per Stamp Duty Act 1949 (revised 1989). |
Legal Fees |
As per the scale in the Solicitors’ Remuneration Order (SRO) |
Disbursement Fees |
Disbursement Fees including but not limited to registration fee, search fee, government tax and any other taxes or levy as per the scale fees charged by the respective authorities and/or legal firms. |
Valuation Fees |
As per the Seventh Schedule (Rule 48) of the scale fees set by the Board of Valuers, Appraisers and Estate Agents Malaysia. |
Processing Fees |
One-time fee shall be charged for approved loan. Currently all processing fees are waived |
Miscellaneous Fees |
Miscellaneous Fees including but not limited to online IBG payment, IBG via ATM machine, cheque processing fee and any other fees or charges that may be imposed by the respective relevant authorities from time to time with prior notice. |
Overdraft Commitment Fee |
1% p.a. on the unutilized Overdraft amount |
*Subject to postage/courier charges and/or Government Tax, if applicable
Please be informed that with effect from 2nd August 2019, the repricing rate and default rate shall be changed as below:-
Rate Charge |
Existing |
Revised |
||
|---|---|---|---|---|
Days Past Due |
Rate |
Days Past Due |
Rate |
|
Repricing Rate |
63 |
Prescribed Rate + 2% |
100 |
Prescribed Rate + 2% |
Default Rate |
85 |
+ Additional 1% |
Removed |
Removed |
Revision to Original Interest Rate |
Upon full account regularization |
Account is paid to below 90 days past due |
||
SME Mortgage (Non-Individual)
| Description / Service | Charges / Fees* |
|---|---|
Withdrawal of Advance Payment Fee |
RM50.00 per request |
Security Document Retrieval fee (request for photocopy) |
RM2 per page, min RM10 |
Additional loan statement i. Up to 1 year
ii. More than 1 year |
RM10.00 per request RM2.00 per page
RM10.00 per request RM5.00 per page |
Request for pricing variation |
0.1% of outstanding balance, subject to minimum of RM100.00 and a maximum of RM200.00 |
Termination fee for cancellation of loan prior to loan disbursement |
RM2,000.00 |
Late payment charge |
1% p.a. will be additionally levied on any amount in arrears, from the time of default until the time such amount(s) in arrears are paid |
Stamp Duties |
As per Stamp Duty Act 1949 (revised 1989). |
Legal Fees |
As per the scale in the Solicitors’ Remuneration Order (SRO) |
Disbursement Fees |
Disbursement Fees including but not limited to registration fee, search fee, government tax and any other taxes or levy as per the scale fees charged by the respective authorities and/or legal firms. |
Valuation Fees |
As per the Seventh Schedule (Rule 48) of the scale fees set by the Board of Valuers, Appraisers and Estate Agents Malaysia. |
Miscellaneous Fees |
Miscellaneous Fees including but not limited to online IBG payment, IBG via ATM machine, cheque processing fee and any other fees or charges that may be imposed by the respective relevant authorities from time to time with prior notice. |
Overdraft Commitment Fee |
1% p.a. on the unutilized Overdraft amount |
*Subject to postage/courier charges and/or Government Tax, if applicable
Please be informed that with effect from 2nd August 2019, the repricing rate and default rate shall be changed as below:-
Rate Charge |
Existing |
Revised |
||
|---|---|---|---|---|
Days Past Due |
Rate |
Days Past Due |
Rate |
|
Repricing Rate |
63 |
Prescribed Rate + 2% |
100 |
Prescribed Rate + 2% |
Default Rate |
85 |
+ Additional 1% |
Removed |
Removed |
Revision to Original Interest Rate |
Upon full account regularization |
Account is paid to below 90 days past due |
||
FAQs: Maturity Date Extension in Year 2015
Q1: I noticed that the Maturity Date for my loan/financing account has been extended after the Bank one off exercise in year 2015. Why does the Bank extend the Maturity Date of my account?
A1: In May/June 2015, the Bank has reviewed your loan/financing account. We noted that with the instalment amount at the point of time, your loan/financing account was not able to be paid off within the remaining tenure due to the increasing trend of BLR/IFR.
Thus, on best effort basis, below are the Bank’s approach to enable this loan/financing account to be paid off:
- Adjust the tenure (max tenure up to 35 years).
- Not exceeding 70 years of age for main/ joint borrower/customer (whoever younger) at the end of the remaining tenure
- Revise the instalment amount based on the adjusted tenure (if required).
If the first two criteria are met, tenure was adjusted as not to increase your financial burden with high increase of instalment amount.
Q2: I noticed that my current tenure is above 35 years. Do I have to settle my loan/financing outstanding at lump sum on year 35?
A2: No. You may pay according to the original Maturity Date.
Q3: What is the Maturity Date of my loan/financing account if my Original Maturity Date has already lapsed?
A3: The revised Maturity Date shall be applicable to your account. You have to continue to pay the current instalment until the revised Maturity Date.
Q4: How was the Original Maturity Date being calculated?
A4: The correct methodology to calculate the Original Maturity Date is based on 1st Instalment Date + Approved Tenure.
For example:
1st Instalment Date = 01 June2006
Approved Tenure (as per Letter Offer) = 25 years
Original Maturity Date = 01 May 2031
(Note: The change of Maturity Date does not affect the mortgage/property account’s outstanding balance.)
Q5: I noticed that my Maturity Date has been revised. Why did I not receive the notification letter from the Bank in year 2015 to inform me on the changes?
A5: There was no notification letter sent out to inform customer on the change of maturity date in year 2015. However, for accounts that were subject to instalment revision subsequently in August 2015 and thereafter, notification letters of instalment changed were sent to customers.
Q6: I have received the Letter of Maturity Date Extension from the Bank dated 30 November 2020. How can I inform the bank on the preferred Option on the Maturity Date?
A6: For Loan/Financing account with joint borrower/customer or under company, please bring the form and submit it to nearest Hong Leong Bank/Hong Leong Islamic Bank branches. For individual borrower/customer under single name, you may follow the steps in our letter and complete the Online form at the weblink given.
Q7: I have more than one loan/financing account under my own name. Can I submit more than one online form?
A7: Yes, you can. Each account has been assigned an unique TAC in the Letter of Maturity Date Extension issued to you. You are required to refresh the webpage after you submitted every online form. Remember to refresh the webpage before you start from step 1 with TAC of other account submission.
Q8: Does the extension of maturity date affect my CCRIS record?
A8: No, this extension of maturity date does not impact your CCRIS record.
Q9: Can I shorten the current loan/financing tenure or bring forward the maturity date of my loan/financing account?
A9: Yes, you can. Please contact us for assistance and request the revision of instalment amount base on your preferred Maturity date.
Please take note that upon the Maturity date is confirmed and accepted by you, any future extension of tenure is subject to the approval of Restructured & Rescheduled (R&R) where it will have impact on your CCRIS record.
Q10: I need further information for my loan/financing account before I decide on the Maturity date.
A10: You may contact any of our Hong Leong Bank/Hong Leong Islamic Bank branches or contact our Call Centre at 03-76268899 or Customer Collections at 603-79591888.
We are pleased to share with you our new mortgage service charter, where we outline the service standards we provide and information on how to reach us for mortgage related queries.
- Know your customer
- Timely and efficient service
- Transparent and personable service
- Banking made accessible
Please click here to view the Mortgage Service Charter.
