Maybank taps Aussie property mart

KUALA LUMPUR: Malayan Banking Bhd (Maybank) is expanding its "Overseas Mortgage Loan Scheme" for purchase of residential properties in Melbourne, Australia to tap into the growing demand of Malaysians investing in Australian properties.

In a statement it said 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 of both.

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

The Australian market has not suffered a fall in median house prices, he said, adding that in fact it had grown by an average of 9.1 per cent per annum on average for the past 10 years.

"The global financial crisis in 2009 and 2010 saw property prices in markets such as the UK and US fall significantly. However, properties in Australia actually in-creased in value during this period." he said.

Under the scheme, financing will be in ringgit and other key features include competitive interest rate, high margin of financing of up to 75 per cent, flexible repayment and longer loan tenure of up to 30 years or 70 years of age, whichever is earlier.

Currently, Malaysians purchasing properties in Australia obtain financing in Australian dollars and are exposed to foreign currency exchange fluctuations when making monthly loan repayments.

Lim said the new mortgage will benefit Malaysians who are showing increasing interest in buying properties in Australia.

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

"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,"said Lim.

Maybank first introduced the Overseas Mortgage Loan Scheme in ringgit in January to finance the purchase of London properties. As at May 2012, the bank approved new loans from this portfolio exceeding RM260 million.

By Business Times