Maybank expands ringgit mortgage scheme (1155)

Malayan Banking Bhd (Maybank) has expanded its overseas ringgit
mortgage loan scheme to Melbourne, Australia, and expected a take-up of
RM300 million within the next 12 months.

In a statement today,
its deputy president/head of community financial services, Lim Hong
Tat, said the move will help the bank achieve double-digit growth for
its home financing segment.

He said the right investment property in Melbourne offered great returns and exceptional growth potential.

"The
Australian market has not suffered a fall in median house prices. 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 in the UK and US fall
significantly. However, properties in Australian actually increased in
value during this period," he said.

Lim said given that
Australia currently offered 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.

Maybank said it first introduced the scheme last
January to finance the purchase of London properties, and as at May, it
had successfully approved new loans from this portfolio exceeding RM260
million.

It said the scheme was expanded to Melbourne to tap the growing demand of Malaysians investing in Australian properties.
"The
facility 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.

"Currently,
Malaysians purchasing properties in Australia obtaining financing in
Australian dollar are exposed to foreign currency exchange fluctuations
when making monthly loan repayments," it said.

The bank said under the facility, financing will be in ringgit, which provided relief from fluctuations in currency exchange.

"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," it
said. -- Bernama