It’s possible to get a loan for commercial property, but the requirements and down payments are generally tougher. The scrutiny is more thorough and will highly impact the bank’s decision whether to give you a loan or not.
Some items that banks take into consideration before lending for commercial property include:
- What type of property you plan to buy
- Why you want to buy (business purpose)
- The location of the property
- The floor which the property is located on
- Others
Worth mentioning is that it’s significantly easier to get a home loan in case you have the so called MM2H visa or work and reside in Malaysia.
The following steps are included when applying for a loan as a foreigner:
Do your research and find a handful of banks who are willing to offer you a loan. Compare the different options and what suits you best (including repayment period, interest rates, just to mention a few).
Process when applying for commercial property loan in Malaysia:
- Prepare the documents needed, usually involving proof of identity (passport), proof of your residential and legal status in Malaysia, financial proofs and more
- Get an approval in principle, which will make sure that you have your finances covered. The last thing you want to do is to bid on a property without being backed financially
- Find a solicitor and an agent, to help you through the conveyancing process
- Prepare the initial deposit, usually set to 2-3%. This will be used as evidence to the bank that you want to proceed with your purchase
- Continue the payment of the instalments and be prepared to pay an additional 7-10% of the sales amount before signing the Sales & Purchasing Agreement (SPA)
- Finalize the mortgage and the remaining payments within 3 month
