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VIVIEN LIMIPOH PROPERTY · REN 43762PROPERTY HELP
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Commercial and industrial premises: deposits follow the written tenancy; financing depends on the borrower, property and bank product. Housing-loan assumptions do not automatically apply.
Related knowledge answers
Source-linked answers from published guides and checked official references. These are fixed explanations, not generated chat replies.
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What if the bank values the shop or factory below the price?
The bank's accepted net price or valuation basis can leave a larger cash gap. For illustration only: at a RM1,000,000 price, an accepted basis of RM900,000 and an assumed 80% property loan produces RM720,000 financing and RM280,000 towards the price from cash, before fees. Ask the bank which basis its offer actually uses.
What to do next
- Seek an indicative valuation before an irreversible commitment.
- Recalculate the price gap and all uncovered costs.
- Discuss price or contract options with your lawyer if cash is insufficient.
The 80% is a calculation assumption, not a bank quote; do not inflate the SPA or hide rebates.
Official and professional references
How much can I borrow to buy a shop lot or factory?
There is no fixed margin for every buyer. CIMB's individual Business Premises Financing-i advertises up to 90%, including specified costs capped at 5%; RHB's individual commercial product has a different base margin and cost structure. Company, owner-occupied and investment products must be checked separately. Published maxima are not approval promises.
What to do next
- Identify the borrower and whether the premises are for own use or investment.
- Ask the bank to separate purchase-price financing from financed costs.
- Budget using the written approval, not a headline maximum.
Bank valuation, property classification, income and credit assessment may reduce the approved amount.
Official and professional references
What interest rate and loan tenure should I use for a shop or factory?
Use a dated bank quotation and its PDS. Individual and business products have different maximum tenures and pricing. Compare the effective rate, benchmark and spread, monthly payment, lock-in, early settlement and unfinanced fees. Floating rates may change repayments; sample PDS rates are not today's personalised offer.
What to do next
- Request a current written quotation for the exact borrower and property.
- Check cash flow if the rate rises by one and two percentage points.
- Compare insurance, prepayment, redraw and early-exit terms.
Approval, rate and tenure depend on assessment; a calculator cannot confirm eligibility.
Official and professional references
Does having two home loans mean a shop or factory loan is capped at 70%?
BNM's announcement describes a 70% LTV limit for a borrower's third house financing facility. It does not establish one rule for every third property of any type. Ask the bank to confirm the classification of your proposed commercial or industrial facility. Existing debts still affect affordability and the approved margin.
What to do next
- Disclose all outstanding facilities and property classifications.
- Ask the bank to confirm the new facility's classification and applicable limits.
- Recalculate cash needs using the actual approval.
Neither automatic 70% for every shop nor automatic 90% for commercial property is a safe promise.
Official and professional references
Can EPF housing withdrawal or a first-home scheme fund a shop or factory?
Do not automatically apply residential benefits to a purely commercial shop or factory. SJKP HCGS eligibility is for a first owner-occupied residential property. KWSP Buy House Withdrawal is residential, but its stated definition includes a shop lot with a residential unit bought from a developer in Malaysia. Have KWSP confirm any mixed-use unit before relying on a withdrawal.
What to do next
- Identify the exact approved unit type and purchase documents.
- Ask KWSP or the scheme provider to confirm eligibility directly.
- Budget without unconfirmed withdrawals or exemptions.
A commercial title label alone is not the complete test; do not promise approval or categorically exclude every mixed-use shop.
Official and professional references
Should I buy personally, jointly or through a company, and will a guarantee be needed?
Ownership, borrower and guarantor are different roles. Individuals and companies use different products; joint ownership does not automatically mean matching joint financing. For example, Maybank Online PBF-i requires a directors' guarantee for Sdn Bhd. A company loan does not automatically shield its guarantors from personal liability.
What to do next
- Ask a lawyer and tax adviser to review the ownership arrangement.
- Confirm each borrower's eligibility and the proposed security with the bank.
- Read guarantee limits and release terms before anyone signs.
A guarantor, company or joint applicant does not guarantee approval or a higher margin.
Official and professional references
These are general explanations. An individual property, application or agreement still needs confirmation.