Maybank expands overseas ringgit mortgage scheme to Melbourne

KUALA LUMPUR (June 22): Malayan Banking Bhd (Maybank) has expanded its Overseas Mortgage Loan Scheme for purchase of residential properties in Melbourne, Australia to tap into Malaysian demand for Australian properties.

"The right investment property in Melbourne offers great returns and exceptional growth potential," Maybank deputy president and head of community financial services Lim Hong Tat said in a statement Friday.

"The Australian market has not suffered a fall in median house prices, in fact it had grown by an average of 9.1% per annum on average for the past 10 years. The Global Financial Crisis in 2009 and 2010 saw markets property prices markets such as in the UK and USA fall significantly, however properties in Australian actually increased in value during this period," he said.

The statement revealed that the new scheme will finance completed or off plan residential properties developed in Melbourne by Malaysian and Australian developers in the form of term loan, overdraft or a combination both.

Malaysians investing in Australian properties must currently obtain financing in Australian dollars, exposing them to exchange rate fluctuations when making loan repayments.

This risk is negated under Maybank's Overseas Mortgage Loan Scheme, which will be in ringgit.

"Other key features include competitive interest rate, high margin of financing of up to 75%, flexible repayment and longer loan tenure of up to 30 years or 70 years of age, whichever is earlier," it said.

The mortgage scheme will also benefit Malaysians seeking acquire property in Australia in other ways.

"Given that Australia currently offers attractive advantages for property purchase to non-residents, the bank has tied-up with reputable international real estate agencies to assist customers, particularly on the country's regulations," Tan said.

"We anticipate a take up of RM300 million for this new facility within the next 12 months. It will also help the bank to achieve double digit growth for our home financing".

Maybank first introduced the Overseas Mortgage Loan Scheme in ringgit January last year to finance the purchase of London properties.

As of May this year, it had successfully approved new loans from this portfolio in excess of RM260 million.