MALAYSIANS SAVE UP TO RM204,000 ON THEIR MORTGAGES  VERSUS OTHER ASEAN BUYERS

PRESS RELEASE: MALAYSIANS SAVE UP TO RM204,000 ON THEIR MORTGAGES  VERSUS OTHER ASEAN BUYERS

Kuala Lumpur, 18 December 2025 — An exclusive new comparison of mortgage rates  and terms across six Asia-Pacific countries reveals that Malaysians can save the  equivalent of more than RM200,000 over the lifetime of a typical mortgage, compared  to buyers in other countries. Malaysians live in the region’s most borrower-friendly  mortgage market. 

Table 1: Mortgage Cost Comparison by Country  

(Current rates, RM200,000 Loan) 

Country	Typical Rate	Total Interest (RM)	Difference vs.  Malaysia (RM)
Indonesia	8.98%	378,292	204,873
Vietnam	7.75%	315,817	142,398
Thailand	5.52%	209,712	36,293
Malaysia	4.70%	173,419	N/A
South Korea	3.95%	141,667	-31,752
Japan	1.99%	65,766	-107,653

“Everyone feels the pinch of living costs now and then,” said Juwai IQI Co-Founder and  Group CEO Kashif Ansari. “So, Malaysian homebuyers and homeowners are lucky to  have it better than their counterparts in similar countries. 

“Over the 30-year lifetime of a typical RM200,000 loan, one will pay RM173,419 in  interest, while similar home buyers in Indonesia will pay RM378,292. That means  buyers in Indonesia pay RM204,873 more for their mortgages than do buyers in  Malaysia.  

“Because of Malaysia’s strong financial system and regulatory environment,  homebuyers pay less than half what buyers in Indonesia pay for their home loans.  That helps make Malaysia one of the most stable and borrower-friendly markets  among comparable Asia-Pacific markets. 

“Nor is it just Indonesia. We looked at six Asia-Pacific countries and found that  Malaysians pay less on a comparable mortgage than buyers in all but two other  countries. 

The Worst Countries for Homebuyers 

“Indonesia, Vietnam, and Thailand have the most expensive mortgages among the six  countries we researched. 

“We already saw that typical homebuyers in Indonesia pay the equivalent of more  than RM204,873 extra over the term of their home loan, for a property of the same  value, than Malaysians.  

“Homebuyers in Vietnam also pay a premium. There, borrowers pay an extra  RM142,398, compared to Malaysia. 

“The premium that Thai buyers pay for a mortgage compared to Malaysians is much  lower than in Indonesia and Vietnam, but it’s still significant: RM36,293. 

Why Malaysians Pay So Much Less for Mortgages 

“Malaysian homebuyers get a much better deal on their mortgages because of the  different interest rates in each country. In Malaysia, rates are lower because of the  country’s good governance. 

“For example, the massive national savings pools like the EPF ensure Malaysian banks  have plenty of local ringgit to lend.  

“Malaysian borrowers also benefit from a level of transparency that is rare in  Southeast Asia. They cannot be trapped by low teaser rates that after three years  suddenly jump and increase their mortgage payments by 50%, like in Thailand and  Vietnam. 

“Malaysia is also special because banks have to be transparent about how much they  are charging. Banks charge borrowers a premium above the Standard Base Rate. If  one bank offers “SBR + 1.45%”, while another only promises “SBR + 2%”, borrowers  know their mortgage will be much less expensive with the former. 

“The savings for Malaysians also go beyond just interest rates. Buyers in Vietnam  must pay a 10% value-added tax on new homes, while Thai buyers typically pay 2% in  transfer fees. On the other hand, many Malaysian first-time buyers enjoy full stamp  duty exemptions. Buyers in Ho Chi Minh City and Bangkok can start tens of thousands  of ringgit behind a Malaysian. 

“Buyers should note that the full stamp duty exemption for first-time buyers, on  homes up to RM500,000 was extended until December 31, 2027 in the recent budget. 

Who Has the Least Expensive Mortgages? 

“Malaysia is the best place to have a market-rate home loan of all the countries we  looked at, but it doesn’t have the least expensive mortgages of all. In fact, mortgages  in Japan and South Korea are less expensive than in Malaysia, due to very special  circumstances.  

“In Korea, government-backed ‘Didimdol’ and ‘Bogeumjari’ fixed-rate loans keep  rates helpfully low for lower-income and middle-class buyers. These loans are  targeted, however, and all other buyers pay more. 

“For example, the Korean government offers interest rates on 30-year loans as low as  2.8% to low-income Korean newlywed buyers through its Didimdol loan programme.  The typical rate for 30-year t-Bogeumjari loan is 3.95%. 

“These Didimdol and Bogeumjari programs make Korea the only country that B20 and  M40 Malaysian home buyers could possibly envy when it comes to the cost of their  mortgages.  

“The Korean financing system could be a model for Malaysia to consider. It helps  those who need it most by guaranteeing they have stable, predictable, and low  monthly mortgage payments. 

“While Japanese home buyers also pay much less for their mortgages, I don’t think  Malaysians should envy them. Japanese mortgages are low because Japanese interest  rates are extremely low. And rates are low in Japan because the country is trying to  fight three decades of deflation, weak growth, and demographic decline. 

“In contrast to Japan, Malaysia is a relatively high-growth country. Our healthy  economic growth is much more beneficial to household finances than slightly lower  mortgage rates would be. 

Malaysia Has It Good 

“The conclusion of our research is that Malaysia is borrower-friendly. That helps home  buyers and homeowners build financial independence. It also adds stability and  predictability to the home market. It’s a huge net benefit for the country as a whole.” 

-END–

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