Document background
The Mortgage Letter is a critical document in Malaysian property financing that serves as the formal offer of mortgage facilities from a financial institution to a prospective borrower. It is used when a financial institution has approved a mortgage application and needs to formally communicate the terms and conditions of the facility. The document must comply with Malaysian banking regulations, including the Financial Services Act 2013 and the National Land Code 1965, and can be adapted for both conventional and Islamic banking systems. The Mortgage Letter includes essential information such as the approved facility amount, interest rates, repayment terms, security requirements, and conditions precedent. It forms the basis for the subsequent mortgage documentation and must be accepted by the borrower before proceeding with the mortgage transaction.
