If you are buying SoHo unit in Malaysia, most of the bankers treat it as a commercial property. Therefore, the housing loan interest rate for your mortgage financing package will be using commercial rate, which is about BLR – 1.5% instead of BLR – 1.8% for residential properties.
Bear in mind, the margin of finance (MOF) for commercial property loans are usually lower than residential loan. For instance, normally we are able to get 90% MOF for residential homes. But MOF for commercial property usually ranges from 80% to 85%.
In another words, you need to fork out more money for your down payment if buying commercial property, normally about 15% to 20% of the property selling price.
Besides, the Sales and Purchase Agreement (commonly known as SPA or S&P) for commercial property is not using neither Schedule H nor Schedule G, which is protected by Housing Development Act (HDA).
Hence, do not sign the SPA blindly, make sure you have gone through the agreement and get the clarification from your lawyer for any doubt, utilize their service.