How do foreigners buy property in Malaysia with a home loan?

Checked 21 October 2026 by Seann Siow, REN 34312. Sources are listed at the end of this page.

Short answer: Malaysia's central bank allows a foreigner to borrow ringgit, in any amount, from a Malaysian bank to buy property here. Each bank then decides whether to lend to you and on what terms. Apply as soon as you book, and sign the sale and purchase agreement only once the bank's letter of offer is in.

Get the letter of offer before you sign. Once you sign the sale and purchase agreement, you are committed to its payment schedule, whether or not a bank lends to you. Before you book, also ask the developer what happens to your booking fee if no bank approves your loan.

Can a foreigner borrow from a Malaysian bank?

Yes. Bank Negara Malaysia's foreign exchange rules, in force from 1 October 2025, allow a non-resident to borrow ringgit, in any amount, from a Malaysian resident lender to buy or build residential or commercial property in Malaysia (Foreign Exchange Policy Notices, Notice 2, paragraph 15(a)).

The rules permit the borrowing; they do not require any bank to lend. Each bank decides whether to approve you, how much to lend and on what terms, so the answer you get can differ from one bank to the next.

Step by step: buying a new launch with a loan

Choose the unit and book it. You pay a booking fee to reserve the unit. Ask the developer how long you have to sign the sale and purchase agreement.
Apply to the banks straight away. Apply to two or three banks at once, so one slow or negative answer doesn't hold you up. I can introduce you to the banks' property loan officers.
Get the letter of offer. This is the bank's written approval, with the amount, the interest rate and the conditions. Read the conditions before you accept.
Sign the sale and purchase agreement. You pay the down payment, usually 10% of the price, when you sign.
Sign the loan agreement. The bank's lawyer prepares it. Stamp duty on the loan agreement is 0.5% of the loan amount.
State approval. Your lawyer applies for the state's written approval for a foreign purchase, as every foreign buyer needs. See State approval for foreign buyers.
The bank pays the developer as the building goes up. The developer bills each construction stage. If your loan covers less than the rest of the price, you pay the difference first; after that, the bank pays each stage from your loan.

Documents banks usually ask for

Your passport
Proof of income: payslips and an employment letter, or business accounts if you are self-employed
Recent bank statements
A tax return or a credit report from your home country

Each bank has its own list and may ask for more, so ask for the full list before you apply.

What differs from bank to bank

These are the terms to compare. There is no single answer for foreign buyers, so ask each bank:

How much it will lend: the share of the price the bank will finance, also called the margin of financing.
The loan period: how many years, and the age limit at the end of the loan.
The interest rate: whether it is floating or fixed, and any lock-in period with a penalty for paying off early.
Your income: whether the bank accepts income earned overseas and in which currencies.
Signing: whether you must be in Malaysia to sign, or can sign at an embassy or through your lawyer.

How the interest rate is set

Since 1 August 2022, new floating-rate home loans in Malaysia have been priced off the Standardised Base Rate, which Bank Negara Malaysia links solely to its Overnight Policy Rate. Your loan rate is that base rate plus the bank's margin, so when Bank Negara Malaysia changes the Overnight Policy Rate, your instalments can change too.

What the loan itself costs

Cost	How much	On a RM700,000 loan
Stamp duty on the loan agreement	0.5% of the loan amount	RM3,500 (≈ US$875)
Legal fees for the loan agreement	Charged by the bank's lawyer on a scale set by the loan amount	Ask the lawyer for a quote

These are on top of the costs of the purchase itself, such as the 8% stamp duty on the transfer and the state approval fees. See Property taxes for foreign buyers.

Questions to ask the bank

Do you lend to non-residents for this project, and how much of the price will you finance?
What interest rate will I pay, is it floating or fixed, and is there a lock-in period?
What is the longest loan period you offer me, and what is your age limit?
Which documents do you need, and do you accept income in my home currency?
Do I need to be in Malaysia to sign, and how long does approval take?
What are the legal fees and other charges for the loan?

Buying from overseas? I'll introduce you to the banks and keep the loan, the agreement and the state approval moving in the right order. Ask on WhatsApp →

Before you pay a booking fee

Foreign Investor's Due Diligence Checklist (free)

The checks to make before you commit to any property in Malaysia.

Get the free checklist

Prefer to talk it through? Ask Seann on WhatsApp

Frequently asked questions

Can a foreigner get a home loan in Malaysia?

Yes. Bank Negara Malaysia's foreign exchange rules, in force from 1 October 2025, allow a non-resident to borrow ringgit, in any amount, from a Malaysian resident lender to buy or build residential or commercial property in Malaysia. The rules permit the borrowing; they do not require any bank to lend, and each bank decides its own terms.

How much can a foreigner borrow?

There is no single figure. Each bank decides how much of the price it will lend you, based on your income, your existing debts, the property and its own policy for foreign borrowers. Ask two or three banks for a letter of offer and compare them.

What documents do banks ask a foreign buyer for?

Usually your passport, proof of income such as payslips, an employment letter or business accounts, recent bank statements, and a tax return or credit report from your home country. Each bank has its own list, so ask for it before you apply.

Should I get the loan approved before signing the sale and purchase agreement?

Yes. Apply straight after you book and sign the sale and purchase agreement only once the bank's letter of offer is in. Once you sign, you are committed to the payment schedule whether or not a bank lends to you.

How much is the stamp duty on the loan agreement?

0.5% of the loan amount, the same rate for foreign and Malaysian borrowers. On a RM700,000 loan that is RM3,500. Legal fees for the loan agreement are charged on top.

Keep reading

About the author

Seann Siow is a registered estate negotiator in Kuala Lumpur (REN 34312) with more than 10 years in property. He helps foreign buyers and relocating families buy new condominiums in Kuala Lumpur.

More about Seann

Sources

Checked 21 October 2026.

Bank Negara Malaysia, Foreign Exchange Policy Notices (issued and in force 1 October 2025), Notice 2, paragraph 15(a), and the definition of Real Sector Activity — bnm.gov.my.
Bank Negara Malaysia, revised Reference Rate Framework (Standardised Base Rate linked to the Overnight Policy Rate, from 1 August 2022) — bnm.gov.my.
Stamp Act 1949, First Schedule: stamp duty on loan instruments at RM5 for every RM1,000 (0.5%), as summarised by the National House Buyers Association — hba.org.my.
National Land Code, section 433B (state approval for acquisition by non-citizens).
The order of steps (letter of offer before signing) and the documents banks usually ask for: from transactions handled by Seann Siow (REN 34312).
US dollars: converted at RM4 = US$1 and rounded, a rough guide only.

General information, checked on the date shown, not legal, tax or financial advice. Each bank sets its own lending terms and nothing here means a bank will approve you. Confirm the terms with the bank and your lawyer before you sign. Seann Siow, REN 34312.