Financing · Updated 8 October 2026
Home loans for foreigners in Malaysia: bank rules and which banks lend
What Bank Negara allows, what each major bank publishes about lending to foreigners and MM2H holders, how your foreign income is counted, and the documents to prepare.
Quick takeaways
Foreigner home loans in 30 seconds
The official rules
What Bank Negara allows
- Non-residents may borrow ringgit in any amount from Malaysian residents, including banks, to buy or refinance immovable property in Malaysia. Land-only purchases are excluded (BNM Notice 2, FAQ updated Nov 2024).
- Bank Negara sets no limit on the number of properties a foreigner may finance and no separate loan-to-value cap for foreigners under the foreign exchange rules.
- For everyone, the third outstanding housing loan is capped at 70% of the price. Margins on the first and second loan are left to each bank.
- Your bank, not Bank Negara, decides the margin, tenure, income haircut and whether it lends to your nationality at all.
Bank by bank
What the banks publish
From each bank’s own pages, checked 8 October 2026. “General” margins are for Malaysian borrowers. Broker figures are reports, not bank offers.
| Bank | Lends to foreigners? | MM2H home loan | Published margin and tenure | Notes |
|---|---|---|---|---|
| Maybank | Yes: home financing open to residents and non-residents with passport and visa or work permit | No separate loan; MOTAC’s MM2H banking partner since 2025 | Up to 95% (general); 35 years or age 70 | Foreigner margin not published; brokers report about 60% |
| CIMB | Yes for MM2H participants | Yes: MM2H and MM2H-i | Up to 85% for MM2H (bank page) | Other foreigners: ask; brokers report about 60% |
| RHB | Yes for MM2H participants | Yes: MM2H Home Financing | Up to 80% plus 5% for legal and insurance; 30 years or age 65 | Multi-currency accounts in MYR, USD, GBP, SGD |
| UOB Malaysia | Yes: open to Malaysians, PRs and foreigners | Approved MM2H bank (accounts) | Up to 95% (general); 35 years or age 70; minimum loan RM100,000 | Foreigner margin not published |
| HSBC Malaysia | Yes, with work permit, Residence Pass-Talent or MM2H visa | Preferential home loan rates for MM2H Premier clients | Not published | Brokers report about 70% |
| Alliance Bank | Yes: Malaysians and foreigners eligible | No | Up to 90% (general) plus 5% for costs; 35 years or age 70 | Foreigner margin not published |
| Standard Chartered | Bank site names Malaysians only; ask | No | 35 years or age 70; minimum income RM8,000 | Brokers report lending to foreigners at about 70% |
| OCBC Malaysia | Bank site names Malaysian citizens only; ask | No | Minimum income RM5,000 | Some Singapore-income cases reported |
| Hong Leong, Public Bank, AmBank | Not published | No | Up to 90–95% (general) | Case by case; ask a mortgage officer |
How banks read your income
Income, DSR and credit history
Foreign income haircut
Banks that lend to foreigners usually count 70% to 90% of foreign salary to allow for currency swings, and less for bonuses or commission.
Debt service ratio
Your total monthly repayments, including the new loan and debts at home, divided by net income. Many banks look for 60% to 70% or lower.
No Malaysian credit record
Foreigners have no CCRIS history, so banks lean on your home credit report (for example Singapore’s CBS) and may offer a lower margin or a higher spread.
Age and tenure
Most banks want the loan repaid by about age 65 to 70, so a 50-year-old may get 20 years, not 35.
Visa validity
Some banks need your passport and pass to be valid for months ahead; a short work permit can limit the tenure.
Try the numbers
Use the home loan and DSR calculator with a 60% or 70% margin to see your instalment.
Paperwork
Documents banks usually ask for
- Passport, plus visa, work permit, employment pass, Residence Pass-Talent or MM2H pass
- Employed: 3 to 6 months of payslips, bank statements showing salary credits, an employment letter and your latest tax return or tax assessment
- Self-employed: business registration, 2 years of accounts and 6 months of business bank statements
- Singapore income: CPF statement, IRAS notice of assessment and a Credit Bureau Singapore report
- MM2H holders: MM2H approval letter and Malaysian bank statements
- The property: booking form or SPA, proof of down payment; certified translations for documents not in English or Malay
How it works
From pre-approval to drawdown
1. Pre-check
Before you book, get an indication from one or two banks on margin and tenure for your income.
2. Book and apply
Pay the booking fee, submit the loan application with your documents; the bank values the property.
3. Letter of offer
Read the margin, rate, lock-in period and insurance (MRTA or MLTA) conditions before you accept.
4. Sign the SPA and loan
Your lawyer prepares both; the loan agreement carries 0.5% stamp duty.
5. Consent and drawdown
Once the state consent for the foreign purchase is out, the bank releases the loan to the seller or developer.
Why loans get rejected
Income below the bank’s criteria, a high DSR, missing documents, a blacklisted developer or building, or a short remaining lease.
Straight answers
Frequently asked questions
Can a foreigner get a home loan in Malaysia?
Yes. Bank Negara’s foreign exchange rules let non-residents borrow ringgit in any amount from Malaysian lenders to buy property in Malaysia (not land only). Each bank then decides whether to lend to you and how much.
How much will a bank lend a foreign buyer?
Less than a Malaysian would get. Reported margins for foreigners are usually 60% to 70% of the price, and MM2H participants can get up to 80% at RHB or up to 85% at CIMB on their MM2H products. Plan for at least a 30% down payment plus about 10% to 12% for stamp duty, consent levy and legal fees.
Does my foreign income count?
Yes, at banks that lend to foreigners, but most cut it by 10% to 30% for currency risk, and more for commission or bonus income. They then check your debt service ratio (DSR) against their limit, often around 60% to 70%.
What interest rate will I pay?
Floating home loans are priced off the Standardised Base Rate, which follows the OPR of 2.75%. Foreign borrowers without a Malaysian credit record may be quoted a higher spread than locals.
Can resident Indians borrow in Malaysia?
Generally no. Under India’s FEMA rules resident Indians cannot take a foreign mortgage or borrow in India for property abroad, so the purchase is self-funded. NRIs are in a different position. See my guide for Indian buyers.
Which bank should I go to first?
Start with a bank that already holds your money or your MM2H fixed deposit, then compare two others. I can introduce you to mortgage officers who handle foreign borrowers regularly.
Ask Jason
Ask me about your loan
Tell me your nationality, where you earn your income and your budget. I tell you which banks to approach and introduce you to their mortgage officers.
More for foreign buyers
Related guides
Last updated 8 October 2026. Sources: BNM – FAQ on non-resident borrowing in Malaysia (Notice 2, Nov 2024); BNM – 70% LTV cap on third housing loan (Nov 2010); The Star – BNM keeps OPR at 2.75% (3 Sep 2026); Maybank – Commodity Murabahah Home Financing-i; EdgeProp – Maybank becomes MOTAC’s MM2H banking partner (May 2025); CIMB – MM2H home financing; RHB – MM2H banking; UOB Malaysia – Home loan; HSBC Malaysia – MM2H; Alliance Bank – Basic Home Loan; Standard Chartered Malaysia – MortgageOne; OCBC Malaysia – Home loans; Hong Leong Bank – Home loan; FAR Capital – Foreign income and Malaysian property loans (May 2026); iProperty – Home loan rejection reasons. General information, not legal, tax or financial advice. Rules change; confirm with a Malaysian lawyer, tax agent or your bank before you act.
Know your loan before you book
Send me your income and budget. I come back with banks to try and the margin to plan for.