• Only for Citizens/Residents of Malaysia
• For Individual applicant: minimum gross monthly income of RM5,000 and above; or
• For joint applications, at least one of the applicants is with minimum gross monthly income of RM5,000 and above.

Note: All applications are subject to credit assessment and the final approved financing granted is up to the Bank’s discretion.

1.       What is HLB Mortgage Overdraft?

It is a credit facility secured against residential/non-residential properties with interest computation based on the utilised amount on daily basis and debited to account on monthly basis.

2.       How does HLB Mortgage Overdraft works?

The Overdraft facility will be operated in a Current account, of which the customer will be able to access to his/her own funds as well as access to extra funds within the Overdraft limit.

The Overdraft limit will be determined/approved based on the value of the collateral (property), subject to the maximum margin allowable.

It provides transactional freedom & immediate access of standby fund as long as the utilisation of the Overdraft is within the authorised limit.

3.       What are the types of facility available under HLB Mortgage Overdraft?

i.        Combination of Term Loan & Overdraft

Term Loan refers to:

• Hong Leong Housing Loan
• Hong Leong Shop Loan
•  Hong Leong MortgagePlus Housing Loan
•  Hong Leong MortgagePlus Shop Loan

ii.      Overdraft Facility only

4.       Is there any fee applicable under HLB Mortgage Overdraft facility?

Commitment Fee of 1% is to be charged on the unutilised limit for individuals with Overdraft facility limit exceeding RM250,000.

5.       Does HLB Mortgage Overdraft subject to monthly repayment?

No, this facility is not subjected to fixed monthly repayment schedule since it is a revolving credit facility. Thus, customers have the flexibility to repay/redraw the facility anytime.
 

However, when the Overdraft facility is fully utilised, the customer is required to pay the monthly Overdraft interest every month so that the account is operated within the Overdraft limit, and Commitment Fee of 1% of the unutilised limit of the facility if applicable.

6.       I would like to take a housing loan guaranteed by Skim Jaminan Kredit Perumahan “SJKP” with the Bank. Am I allowed to have the combination of HLB Mortgage Overdraft at the same time?

No, it is not allowable. The Government-initiated Schemes such as Special Housing Loan & Skim Jaminan Kredit Perumahan are under term loan facility only.

7.       Will my HLB Mortgage Overdraft limit be always remain the same?

Your Overdraft Facility is subject to yearly review.

Depending on the products that you have selected, your Overdraft facility limit will be subject to monthly limit reduction which eventually reset to zero once you reach 65 years old.
 

If you have selected the Combination of Term Loan & Overdraft, monthly limit reduction will start from the 61^st month from the date of full availability of Overdraft Facility.
 

If you have selected Overdraft Facility only, the monthly reduction will start from the 37^th month from the date of full availability of Overdraft Facility.

8.       Mr. Lee is taking the HLB Mortgage Overdraft & the Bank granted him Overdraft facility with the limit of RM250,000. Will the account be subjected to the 1% Commitment Fee?

No, because the Commitment Fee of 1% p.a. will only be applicable for Overdraft facility limit exceeds RM250,000.

9.       En. Amir & his wife, Pn. Siti have a joint account of Overdraft facility with limit of RM500,000 granted. Will the account be subjected to the 1% charge of Commitment Fee?

Yes. Because the Overdraft limit granted to the single legal entity (En. Amir & Pn. Siti) thus, it is subject to Commitment Fee of 1% once it exceeds the limit of RM250,000.

10.   Please show me how the overdraft (OD) interest & Commitment Fee (CF) are computed for the HLB Mortgage Overdraft facility.

 Please refer to the simple illustration below based on the following assumptions as of 31^st May 2023 whereby Standardised Base Rate (SBR) is 3.00 p.a.:

11.       Is there any lock-in period for HLB Mortgage Overdraft? If yes, what is the penalty fee/charges if I were to settle the HLB Mortgage Overdraft during the lock-in period?

i.        Combination of Term Loan & Overdraft

The lock-in period is only applicable for the Term Loan portion of the combined facility in which the lock- in period is 36 months from the date of first release.

If you were to settle the Hong Leong Housing Loan / Hong Leong MortgagePlus Housing Loan during this period, you will be charged the early settlement fee which is 3% on 90% of the total approved Facilities limit.

Meanwhile, if you were to settle the Hong Leong Shop Loan / Hong Leong MortgagePlus Shop Loan during this period, you will be charged the early settlement fee which is 3% on 85% of the total approved Facilities limit.

ii.      Overdraft Facility only

Not Applicable

12.       Mr. Raju is currently having a House Financing with Hong Leong Islamic Bank. Can he apply for HLB Mortgage Overdraft facility?

No, since HLB Mortgage Overdraft facility is only available for individual customers of Hong Leong Bank.

13.       Who is eligible for this facility?

This HLB Mortgage Overdraft is open to:

i.        Citizens/Residents of Malaysia

ii.      Individuals with a minimum gross income of RM5,000. For joint applications, at least one of the applicants is with a minimum gross income of RM5,000.

14.       Under what circumstance customers can apply for HLB Mortgage Overdraft?

i.        Existing the Bank (ETB) customers:

For existing customers (ETB) who already have an existing Housing/Shop Loan with the Bank. Customers may apply for HLB Mortgage Overdraft facility as their top-up loan.

ii.      New to the Bank (NTB) customers:

• Sub-sale

When the customers buy a completed property from the secondary market

• New-sale

When the customers buy an under-construction property from the developer

• Refinancing

When the customers have an existing property loan with other Bank, they can refinance their loan to Hong Leong Bank

• Owns a property that is free from encumbrances that is not charged to any party/entity

When the customers need a loan or standby credit facility by using their existing property as collateral

15.       What is the maximum Loan-To-Value (LTV) of HLB Mortgage Overdraft?

16.       What is the minimum facility amount for the HLB Mortgage Overdraft?

The minimum amount of the HLB Mortgage Overdraft portion is RM10,000.

17.       When will the disbursement be made?

i.        Combination of Term Loan & Overdraft

The Overdraft will only be made available once the Housing/Shop Loan is fully released & the Overdraft Current Account is opened by customer at any Branch

ii.      Overdraft Facility only

The Overdraft will be made available once the Overdraft Current Account is created.

18.       Is this HLB Mortgage Overdraft applicable for Individuals or Non-Individuals?

Only for Individuals.

19.       What is the type of property covered under this program?

• Residential & Non-Residential properties
• Under-construction & Completed properties