"Best" could be gauged in many ways, for example the cheapest, best fit, best service. Even when judged on a single dimension (e.g. cheapest), there is no single "best" bank.
For example, varying loan amounts do affect interest rates. CIMB may have very attractive interest rates for loan sizes above RM500k, while Public Bank may be more attractive for loans of a lower amount. It is uncommon for one particular bank to have the most attractive interest rates across all loan sizes.
But it's not just about interest rates. The options on the loan also determine if it is the "best fit" for your situation.
For example, a customer may prefer to have a Full-Flexi loan account. But not every bank in Malaysia offers such an option. Also, for some customers, they may require a Zero Moving Cost Package (where the bank absorbs the legal fees and stamp duty for the loan agreement). Yet only a handful of banks in Malaysia have Zero Moving Cost packages. In such situations, even if the bank offers a very attractive interest rate, it still is not the "best fit" for the customer.
Another key differentiator for the "best" mortgage loan is the difference in service and efficiency between different banks. This is usually highly under-appreciated. The efficiency of a bank is the difference between a 3 days approval process versus a 3 weeks approval process, or a 3 month loan disbursement versus a 6 month disbursement.
Conclusion
The question of "Which bank offers the best home loan" can only be answered by knowing what is the best for your personal situation. Most of the time, it will be based on a subjective judgement of all 3 criterias.
You can always make use of Loanstreet's Home Loan Comparison tool as the first step to learning which loan package would be best suited for your personal situation.
In the coming weeks, we will be tackling the issue of "What are the factors that affect my which bank and how much financing I can qualify for?"
If you are interested to know more about your credit scores and assessments before applying for loans, you can read our guide to CCRIS and guide to CTOS
If you are thinking about getting an islamic home loans, you can also read our guide about islamic home loans.
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... not every bank in Malaysia is able to approve 3rd party loans (Loans where all the joints owners of the property are not joint applicants on a mortgage). Only a handful of banks in Malaysia actually allows such arrangements...
