Loan & Bank Financing
Financing documents prepared properly, and a lender that knows where you are at every step.
Introduction
A mortgage is a security transaction. The bank takes a charge over your property as protection for the money it lends, and those charge documents have to be drafted and registered correctly for that protection to be worth anything.
We prepare loan and financing documentation, liaise with the financial institution, and follow the matter through to the point where funds are released and the formalities are complete. Most delays in a financed purchase are administrative rather than legal, and a solicitor already in correspondence with the bank can usually shorten them.
What this covers
The buyer's side of a financed purchase has its own legal workstream, running in parallel with the sale. A delay here does not just delay completion — it can trigger a breach of the SPA and put your deposit at risk. We take that workstream off your hands.
- Loan and financing agreement documentation
- Panel solicitor appointment for buyers
- Direct liaison with the bank and bank's solicitors
- Charging, memorandum of charge and deed of charge
- Disbursement and release of funds at completion
- Refinancing and loan restructuring
- Cancellation and redemption of existing charges
Buying with a bank loan
When a purchase is financed, two firms normally act: the seller's solicitor and the buyer's panel solicitor. We prepare the loan documentation, submit it to the bank for approval, and work to the bank's requirements so that the charge can be registered at completion.
Early preparation matters. A loan document that is complete and correct on first submission is the single most effective way to avoid the all-too-common problem of the bank coming back with queries after the purchase has already been agreed.
Refinancing and restructuring
Where an existing loan is being refinanced — a new bank pays off the old charge and the borrower repays the difference — the sequencing has to be exact. We check the existing charge, confirm the redemption figure, and coordinate the redemption and the new charge so neither is left outstanding.
Loan stamp duty
Stamp duty on a loan or charge is generally 0.5% of the loan amount. For a first home purchase under the current remission framework, remission may apply to the transfer duty. Neither is applied automatically — eligibility must be checked against the current government position at the time of your transaction.
What loan financing costs, and how disbursement works
We charge the scale fee for loan documentation, which is separate from the conveyancing fee and is set on the loan amount rather than the purchase price. The two are quoted independently so you can see what each one buys.
Disbursement happens at completion, not earlier. Money moves when the transfer is registered and the seller is paid, which is what keeps the chain secure for the bank.
Preparing before you apply
Banks decide on income, existing commitments and the property, and they are strict about the first two. The most common reason a loan application fails is not the property; it is a document that was out of date, or an income figure that does not match what the bank expects to see.
What to bring
- The bank's draft loan agreement or facility letter
- Identity documents (NRIC or passport)
- The sale and purchase agreement, if the loan secures a purchase
Fees
Financing legal fees
Where the loan secures a property transaction, the conveyancing work is charged on the same Solicitors' Remuneration Order 2023 scale set out on our conveyancing page. Where a loan is taken over an existing property without a sale, the scope is different, and we quote for it after seeing the bank's documents.
| Portion of value | Rate | Note |
|---|---|---|
| First RM500,000 | 1.25% | Minimum charge RM500 |
| Next RM7,000,000 (up to RM7,500,000) | 1% | Cumulative, up to RM7,500,000 |
| Above RM7,500,000 | 1% | Negotiable. This calculator uses 1% for estimates. |
The estimate is worked out on the amount secured rather than the purchase price.
All practice areas and services
The material on this page is general information about our services, not advice on your particular situation. Fees, timescales and requirements depend on the facts of each matter and may change. Please speak to TER CHAMBERS before acting on anything set out here.
Ready to speak with us?
Reach us by WhatsApp or email, or visit our office in Taman Intan, Klang. We serve clients across the Klang Valley and beyond.