When will my housing loan be disbursed? When does the bank release the loan to the seller or developer? When do I have to pay the first installment of my home loan?
For houses under construction, the financial institution will release the progressive payment to the developer based on the claim made upon completion of each construction stage as certified by the Architect's Certificate.
For completed properties, the loan will be released upon completion of legal documentation or when all relevant approvals, such as the approval of the state government have been obtained.
The financial institution disburses (pays out) the loan once it has received advice from its lawyer that the legal process has been completed and the loan documents are in order.
At this time you will be informed of the date and amount of the first instalment you have to make.
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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