Minimum requirement for the property value?
A minimum value of RM1 million RM600,000 (for the year 2020) is imposed on all types of properties across every state. Nevertheless, state authorities retain the authority to adjust the minimum value in the states under their jurisdiction.
** For the most up-to-date requirements and guidelines for application, please refer to “Malaysia My Second Home (MM2H): The Latest Requirements & Guidelines To Apply”.
How can foreigners buy at a lower price?
The Malaysia My Second Home (MM2H) program is designed for foreigners seeking long-term residency in Malaysia, offering a 10-year visa. Many former expatriates who previously worked in Malaysia have opted for this program for their retirement in the country.
Before applying, individuals under the age of 50 must maintain a minimum of RM500,000 in their Savings Account, Current Account, or Fixed Deposit, while those aged 50 and above are required to have at least RM350,000 in similar accounts.
Despite the relatively high financial requirement, MM2H provides foreigners with access to property at lower values. The following table, sourced from iProperty, illustrates the minimum property values foreigners can purchase with or without MM2H eligibility:
*Zones in Selangor
Zone 1 – Includes Petaling, Gombak, Hulu Langat, Sepang, and Klang districts
Zone 2 – Includes Kuala Selangor & Kuala Langat districts
Zone 3 – Includes Hulu Selangor and Sabak Bernam districts
Financing with a home loan
MM2H holders can potentially receive a Margin of Finance (MOF) of up to 80%, whereas non-MM2H holders typically receive a 70% MOF. Foreigners often find it advantageous to secure loans from foreign banks in Malaysia. However, there is an exception to this rule when a foreigner is married to a Malaysian citizen. In such cases, the spouse’s participation in loan financing may enable the couple to access an MOF of up to 90%.
For assistance in finding a suitable home loan that meets your needs in Malaysia, please visit the provided link.
Source: Loan Street & iProperty
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