Credit Term

MOF

Margin of Finance

The portion of an asset's price a lender will finance, shown as a percentage — for a home loan, a 90% MOF means the bank lends 90% and you provide the remaining 10% as a down payment.

Margin of finance (also called loan-to-value) tells you how much you must pay upfront. On a RM500,000 home at 90% MOF, the bank finances RM450,000 and you fund RM50,000 plus costs such as legal fees and stamp duty. First-time buyers can often get up to 90% (and sometimes more through special schemes), while additional properties usually attract a lower MOF, meaning a bigger deposit.

A higher MOF means a smaller deposit but a larger loan and higher monthly repayments; a lower MOF means more cash upfront but less to repay. Your credit record and DSR influence the MOF a bank is willing to offer — a strong profile can secure a higher margin on better terms. Understanding MOF helps you plan how much cash you truly need before committing to a purchase.

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