So Lets get started.

CHOOSING THE IDEAL LOAN

There are hundreds of different loan packages out there that offers different rates and different features. Therefore, when choosing a home loan package the 1st question that pops up in your head should not be:

"Which bank offers the lowest interest rate?"

Interest rate should not influence you so much to the extend that you do not consider other factors. The 1st question that you should ask is:

"Which bank can offer me a good loan package under these circumstances?"

Reason why I would advise such is:

1. Service is just as important.
You can choose the best rate in town but if the person serving you is lazy or rude or with an attitude, your loan will most probably get delayed as the staff might have pushed your loan application aside/ When there is something wrong with the loan eg: the loan package that you got is not the one you requested, you can't find or call the person that served you... Actually there's thousand and 1 things that can happen so even if the rates is BLR0.05% better than another bank, I'd rather pay abit for the good service.

2. Are you a risk taker
There are 2 different types of rate that I can think of:

a) Fixed rate
Fixed rate have higher BLR. This is more for those that are risk adverse. Reason is that BLR can fluctuate. Within your 30 years tenure, BLR can shoot up to as high as 12.77% (the highest it went back in 1997).

:: Pros

When interest rates rise, your repayments won’t

:: Cons

If interest rates fall, your repayments won’t
Restrictions on prepayments
No redrawing permitted

b) Variable rate
Variable rate has a lower BLR and this are more for people who are willing to take a bit of risk as nobody can predict what the BLR would be in the coming years. Great example would be the latest decrease in BLR. What was predicted before BLR went down was that it would go up to 7% but instead.. it went down.

:: Pros

When interest rates fall, repayments fall
You enjoy very low interest rates during the initial years
May allow prepayments (subject to conditions)
May have redrawing features (subject to conditions)

:: Cons

When interest rates rise, so do your repayments

3. Xtra charges
Certain banks have hidden cost or extra charge. So remember to ask again and again what charges they have. Eg: Some banks will charge you for every transaction you make. So be xtra careful on that.

Another one would be the "ZERO COST" packages. Do ask the sales staff if all legal fees, stamp duty and valuation fee will be fully absorbed by the bank. Eg: Certain banks will state that it is zero cost however you have to pay 0.5% of the legal fee  or it could be free legal documentation but you have to pay for valuation fee.

4. Term Loan or Flexi Loan

a) Term loan
May offer you the best rate but keep in mind that if you want to pay xtra to clear off your principal, you have to inform the bank in advance. Any xtra payment that you make, you cannot request to withdraw it.

b) Flexi Loan
With the current account, you can deposit money in as a payment for our principal which will help you reduce the interest AND you have the option to withdraw the money at anytime. There are certain banks that has add on features that can link your loan to your savings and offers you additional bonus credit to offset your loan.
Note: Usually there is a set up fee of RM200 and maintenance fee of RM10-RM15 depending on the bank. That's another thing that you should check.

These are a few that I can think about at the moment. Any xtra help would be much appreciated.

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Added on December 12, 2008, 11:55 amDOCUMENTATION

General documents to be prepared.

1) Photocopy of IC
2) Land Title/ S&P
3) Latest 3 months salary slip
4) Latest Bank statment that your salary is credited into
5) BE form & tax receipt
6) Any fixed deposit/ addtional savings you have frm other banks
7) Loan statement (for refinancing cases)
8) Borang A & D (for sole proprietor & partneship- self employed)
9) Borang 24 & 49 (for companies- self employed)
10) 6 months current account (for self employed)

These are the documents that are normally required depending on different circumstances. So you can be prepared. Any bankers around that wants to add on?

There is no harm applying with a few banks as the rates shown are Board Rates which can be negotiated. It is all subjected to management approval 

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Added on December 12, 2008, 12:00 pmPUBLIC BANK
Public Home Plan

ZERO COST PACKAGE (ZC)

Normal Term Loan Package

Loan Amount :150k - 350k
Interest: BLR-2.0 Whole Tenure

Loan Amount :350k - 500k
Interest: BLR-2.1

Loan Amount :>500k
Interest: BLR-2.2
Full Flexi Package*

Loan Amount :200k - 400k
Interest: BLR-2.0 Whole Tenure

Loan Amount :400k - 500k
Interest: BLR-2.1

Loan Amount >500k
Interest: BLR-2.2

* Take note of this. I have checked with public bank but this is not the rate. For their flexi loan Package, the rate is higher. Any PB banker here please clarify on this. Or is this NON ZERO COST (NZC)?
Public Bank Commercial Plan

Loan Amount :200k - 300k
Interest: BLR-1.5 Whole Tenure

Loan Amount :300k - 400k
Interest: BLR-1.6 Whole Tenure

Loan Amount : > 400k
Interest: BLR-1.7 Whole Tenure

Person to contact: HK Law
H/P number: 0166199989

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Added on December 12, 2008, 12:14 pmCIMB BANK

ZERO COST PACKAGE (ZC)

Flexi Home Loan Package

Loan Amount : < RM300k
Interest:
Under Construction - BLR-1.65% Whole Tenure
Completed - BLR-1.75% Whole Tenure

Loan Amount : >RM300k, <RM500k
Interest:
Under Construction - BLR-1.75% Whole Tenure
Completed - BLR-1.85% Whole Tenure

Loan Amount >500k
Interest:
Under Construction - BLR-1.85% Whole Tenure
Completed - BLR-1.95% Whole Tenure

Additional BLR-0.1% for MRTA

NON ZERO COST PACKAGE (ZC)

Flexi Home Loan Package

Loan Amount : < RM300k
Interest:
Under Construction - BLR-1.85% Whole Tenure
Completed - BLR-1.95% Whole Tenure

Loan Amount : >RM300k, <RM500k
Interest:
Under Construction - BLR-1.95% Whole Tenure
Completed - BLR-2.05% Whole Tenure

Loan Amount >500k
Interest:
Under Construction - BLR-2.05% Whole Tenure
Completed - BLR-2.15% Whole Tenure

Additional BLR-0.1% for MRTA

Person to contact: Can contact me and I'll look for a CIMB banker for you
H/P number: 0123871138

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Added on December 12, 2008, 12:25 pmEON BANK

ZERO COST PACKAGE (ZC)

Loan Amount : > RM200k
Interest:
Completed - BLR-2.2%- 2.3% Whole Tenure

Note:
1. This is not a completely zero cost package. Customer will have to bear 0.5% of the legal fees.
2. I need someone to confirm if it is a flexi package or term loan as I'm getting 2 diff answers frm 2 diff staff.

For those who wants their penalty fees up to 3% absorbed as well:

Interest: 1st 8 years - BLR-1.6%
            Thereafter - BLR-2.4%

Lock-in-period = 8 years

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Added on December 12, 2008, 12:40 pmPRICE SOLUTION (subgroup of Std Chartered Bank)

Mortgage One (flexi)

ZERO COST PACKAGE

Under Construction
1st to 5th year: BLR-1.6%
Thereafter: BLR -2.00%

Completed
1st to 5th year: BLR-1.65%
Thereafter: BLR -2.00%

NON ZERO COST PACKAGE (NZC)

Under Construction
BLR-2.00% Whole Tenure

Completed
BLR-2.00% Whole Tenure

Rates are negotiable

Person to contact: Can contact me and I'll look for a PS banker for you
H/P number: 0123871138

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Added on December 12, 2008, 12:47 pmUNITED OVERSEAS BANK

INTELLIGENT HOME LOAN ( i H L )

NON ZERO COST

Under Construction < 40%
1st year: 0%
2nd year onwards: BLR -1.60

Under Construction
1st - 3rd year: BLR -2.00
4rd year onwards: BLR -1.60

ZERO COST

Under Construction or Completed
Whole Tenure: BLR -1.75

MRTA:
MRTA can register 1 person name only although house owner have 2 person...
the loan amount 100% bear on 1 person that registered...

Person to contact: Wayne
H/P number: 012- 517 1210

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Added on December 12, 2008, 1:04 pmHONG LEONG BANK

If I'm not mistaken this is term loan

NON ZERO COST

Under Construction
1st year: 2.38%net
2nd year onwards: BLR 2.88%net
thereafter:-1.30%(with MDTA)

ZERO COST

Under Construction
1st year: 2.88%net
2nd year onwards: 3.88%net
thereafter:-1.30(with MDTA)

Person to contact: JohnChew2002@hotmail.com/ Me!!
H/P number: -/ 012-3871138