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What will happen to my existing loan

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asked on Aug 25, 2021 at 11:42
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Hi, I'm a Malaysian holding  2 existing housing loans with PBB n HLBB. Recently, I am considering giving up my MY citizenship. what will happen to my 2 housing loans after I give up my MY citizenship (but I will continue paying the loans)? 
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4 Answers

answered on Aug 25, 2021 at 12:16
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1. Are you migrating?
2. After having emigrated, how do you pay the housing loans?
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answered on Aug 27, 2021 at 00:00
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Very simple

what will happen to my 2 housing loans after I give up my MY citizenship
Just pay back the balance of the loan and keep the properties.

If cannot pay back, be prepared to be bankrupted and do not come back to Malaysia even in another country's passport.

The moment you enter Malaysia under a Malaysian Bankruptcy, your foreign passport will be seized by Immigration and forbidden to leave until you have  settled the bankruptcy amount.

If you change your Malaysian Citizenship to Singapore Citizenship, the bank can make you a bankrupt in Singapore too.
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answered on Aug 28, 2021 at 21:50
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edited Aug 28, 2021 at 23:11
by   jeff005
If you do not answer Qs asked back on you, how would you know that your exit plans  works?

The answer on how the renunciation of citizenship works with properties in hand have just been discussed recently. Refer to the Q there.

After one has emigrated, can even change their names but can you successfully change Ur facial features as well as the 10 finger prints as in immigration security controls?

Only CIA, KGB, MI6, Mossad can do it successfully (change complete id)
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answered on Aug 30, 2021 at 15:53
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edited Aug 30, 2021 at 15:58
by   jeff005
Continuation from a parallel thread.

https://www.lawyerment.com/answers/questions/14044/my-existing-loan

Excerpts

Hi, I'm a Malaysian holding 2 existing housing loans with PBB n HLBB. Recently, I am considering giving up my MY citizenship. what will happen to my 2 housing loans after I give up my MY citizenship (but I will continue paying the loans)? 
1. Immediately after I renounce my citizenship, it will trigger the local bank to close my accounts and nothing I can do to service the monthly instalment?
2. the reason I said that I will continue paying the loan is that I do not know if the bank will shut my bank account. After I renounce my citizenship, I will still continue paying the loan as I will transfer money into my account in MY to pay the loan ( like what I am doing now). 
3. In so far as the loan covenants, I do not know if I breach any of the clauses in the Loan Agreement that I have signed.   I need the members here to help.  
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 Immediately after I renounce my citizenship, it will trigger the local bank to close my accounts
Not true, there is no such provision in Laws.

After I renounce my citizenship, I will still continue paying the loan as I will transfer money into my account in MY to pay the loan ( like what I am doing now).
This mode is just temporarily only. 
After renunciation, other legal matters can and will surface like 
.. Banking laws of individual countries
.. International Banking Laws and Policies 
.. Overseas Remitances Restriction
No need for me to explain, just Google for further answers.

I do not know if I breach any of the clauses in the Loan Agreement
The most important and fundamental breach is that local housing loans are dispensed to Malaysians only.

Personal perspective only
1.  The bank will not close any housing loan acct when the instalments are up to date. The purpose is to collect back what is owed to bank. Then case closed.

2.  There will be no issues with the bank once all instalments have been completed. It is only when a foreigner sells the properties that attracts hefty capital gains tax levied on foreigners. Transfer is also selling.

3.  Another possible issue is the MRTA that comes together with the housing loan of which the bank will not pay to a foreigner estate who has breached T&C of a local housing loan in the event of a prematured demise of the  overseas houseowner (foreign ownership).

There are other issues related to renunciation of citizenship which is not a topic of concerns with regards to the Topic Contents above.

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