Document background
The Offer Letter Mortgage is a crucial document in the Malaysian property financing process, serving as the bank's formal commitment to provide mortgage financing subject to specified terms and conditions. It is issued after the bank's credit assessment process and before the execution of the full facility agreement. This document is required by Malaysian banking regulations and must comply with Bank Negara Malaysia's guidelines, incorporating either conventional or Islamic banking principles depending on the chosen financing structure. The offer letter includes vital information such as the approved loan amount, interest/profit rate, tenure, and all applicable fees and charges. It forms the foundation for the subsequent legal documentation and is typically valid for a specified acceptance period. The document must be comprehensive enough to protect the bank's interests while being clear and transparent for the borrower's understanding, as required by Malaysian consumer protection laws.
