Hong Leong vs Public Bank Home Loan Malaysia 2026: Which Bank Wins on Rate & Lock-In?
Public Bank wins on headline rate. Hong Leong wins on idle cash. If you carry RM 50,000+ sitting in a current account at any given time, Hong Leong Mortgage Plus offsets that against your daily interest — the effective rate becomes lower than Public Bank's. If you don't, Public Bank 5HOME Plan is the cheaper monthly payment and the lighter lock-in penalty (2% vs HLB's 3%).
Both banks publish a 3-year lock-in. Both cap tenure at 35 years. Both cover up to 90% LTV. The structural difference is how they treat your money once the loan is disbursed — and that's where the choice gets interesting.
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Compare home loan rates from 15+ banks — free, 2 minutesSide-by-side: Hong Leong Mortgage Plus vs Public Bank 5HOME Plan
The numbers below assume a RM 500,000 loan over 30 years, no lock-in negotiation, standard borrower profile (CTOS clean, 30% DSR before this loan). Effective Lending Rates (ELR) are sourced from the banks' indicative pricing as of May 2026. Your personalised rate will vary with profile and quantum.
| Feature | Hong Leong Mortgage Plus | Public Bank 5HOME Plan |
|---|---|---|
| Headline ELR (RM 500K, 30yr) | SBR + 1.75% ≈ 4.50% p.a. | SBR + 1.35% ≈ 4.10% p.a. |
| SBR (May 2026) | 2.75% | 2.75% |
| Indicative monthly instalment | ≈ RM 2,533/mo | ≈ RM 2,415/mo |
| Loan structure | Full-flexi (current account offset) | Semi-flexi (deposit/withdraw with notice) |
| Lock-in period | 3 years | 3 years |
| Lock-in penalty | 3% of original loan (RM 15,000) | 2% of outstanding (~RM 9,500) |
| Max tenure | 35 years | 35 years |
| Max LTV | 90% | 90% (100% with strong credit) |
| Min annual income | RM 24,000 | RM 24,000 |
| Max DSR | 80% (highest in market) | 60-70% (BNM standard) |
| Processing fee | Indicative RM 50-200 | None |
| Account maintenance | RM 10/month | None |
| Withdrawal/redraw fee | None (full-flexi) | RM 50 per withdrawal, max 1/month |
| Cancellation fee (pre-disbursement) | RM 2,000 | Not published |
Sources: Hong Leong Bank Mortgage Plus product page; Public Bank 5HOME Plan product page; RinggitPlus indicative comparison (May 2026); BaseRate.MY for SBR data effective 11-14 July 2025. The 4.10% and 4.50% ELRs are indicative for a standard 30-year, RM 500,000 loan with no lock-in negotiation — your personalised rate depends on quantum, property type, and credit profile.
Your real rate will differ. RinggitPlus runs the same comparison form once and surfaces personalised offers from both banks side by side — without nudging your credit score.
Get personalised rates from HLB and Public Bank in one formWhere Public Bank Genuinely Wins
Lower headline rate. SBR + 1.35% versus HLB's SBR + 1.75% is a 40-basis-point gap. On RM 500,000 over 30 years, that's about RM 118/month — RM 42,480 over the full loan life if rates stayed level (they won't, but the gap travels with you).
Softer lock-in penalty. Public Bank charges 2% of outstanding principal as the early-settlement fee. Hong Leong charges 3% of original loan. On a RM 500,000 loan after 2 years of payments (outstanding ~RM 475,000), Public Bank's penalty is ~RM 9,500. Hong Leong's is RM 15,000 — a RM 5,500 gap if life forces an early refinance or property sale.
Zero processing or monthly account fee on 5HOME Plan. HLB Mortgage Plus carries a RM 10/month maintenance fee (RM 3,600 over 30 years) on the linked current account. Small per-month, non-trivial cumulatively.
LPPSA bridging speed. If you're a federal government servant taking the LPPSA route, Public Bank's branch network and historical processing relationships consistently produce faster turnaround. This is one of the few areas where the choice is not even close.
Higher LTV for clean profiles. Public Bank can extend up to 100% LTV (covering legal fees, stamp duty, and MRTA in the loan) for borrowers with excellent credit — useful for first-home-buyers who are cash-light at completion.
Where Hong Leong Quietly Wins
The offset wins on idle cash. Hong Leong Mortgage Plus is a full-flexi loan — your linked non-interest-bearing current account balance offsets daily principal for interest computation. Park RM 100,000 idle for a year against a RM 500,000 loan at 4.50%, and you save approximately RM 4,500 in that year alone — roughly RM 375/month back in your pocket. Public Bank's 5HOME Plan is semi-flexi and the equivalent only works if you formally pre-pay (and then face the RM 50 withdrawal fee + 1/month cap to access it).
The 80% DSR ceiling rescues stretched borrowers. If your existing debts already eat 65-70% of net income, Public Bank's standard DSR test will reject you. Hong Leong's 80% ceiling — actively published, not a back-channel exception — is the most generous in Malaysian retail banking. For dual-income households juggling a car loan and a personal loan, this is often the difference between approval and rejection.
Real-time redraw with no notice. The full-flexi structure means deposits reduce interest tomorrow. Withdrawals don't require an email, a branch visit, or a 7-day lead time — internet banking does it instantly. On Public Bank's semi-flexi, withdrawals need a request and a RM 50 fee, and you're capped at one per month. Treat HLB's offset like a high-yield savings account that pays your loan rate (currently ~4.50%) tax-free.
Variable-income flexibility. HLB assesses commission and overtime income on a 12-month average rather than requiring a fixed floor. Sales professionals, real-estate agents, and bonus-heavy private-sector employees fare materially better at HLB underwriting than at Public Bank's more rigid payslip-driven model.
Flexi vs Term Loan: Choose by Your Cash-Flow Pattern
The Mortgage Plus offset story sounds compelling — but it only pays off if you actually keep cash in the linked current account. Run the math against your real cash-flow pattern, not your aspirational one.
You should pick Hong Leong Mortgage Plus if: you regularly carry RM 50,000+ idle (emergency fund, business working capital, between-deals cash for property investors), you want one account that doubles as savings + mortgage offset, your monthly inflow stays in the account 10+ days before being deployed elsewhere, or you need the 80% DSR ceiling.
You should pick Public Bank 5HOME Plan if: your bank balance averages under RM 20,000 most of the month, you want the lowest headline rate without managing a linked-account balance, you're a federal government servant routing through LPPSA, you want the lighter 2% lock-in exit cost, or you don't want a RM 10/month account fee.
The break-even rule of thumb: on a RM 500,000 loan, Hong Leong's offset only beats Public Bank's lower headline if your average idle balance exceeds approximately RM 55,000 sustained year-round. Under that, Public Bank's 0.40% rate advantage wins on raw monthly cost.
Lock-In Math: The Real Cost of Breaking Either Loan Early
Both banks carry a 3-year lock-in. Most first-time buyers underestimate how often life forces an early exit — job relocation, divorce, growing family, downsizing parents. National data on Malaysian mortgages suggests 12-18% of borrowers refinance or sell within the first 5 years.
If you exit a RM 500,000 loan during year 2:
- Hong Leong: 3% × RM 500,000 = RM 15,000 penalty. Plus you forfeit the offset benefit you've accumulated.
- Public Bank: 2% × outstanding (~RM 475,000) = ~RM 9,500 penalty.
- Add to either: ~RM 4,000 legal disbursement (loan documentation cost recoverable from bank), valuation fee (~RM 1,500), and any stamp duty on the new loan.
The RM 5,500 lock-in penalty gap is the single biggest hidden cost difference between these two banks. If you suspect even a 25% chance of moving the property within 3 years, weight Public Bank heavier in your decision.
MRTA: The Insurance Decision That Quietly Costs RM 30,000
Both Hong Leong and Public Bank bundle MRTA (Mortgage Reducing Term Assurance) at origination through bancassurance partners. The bank's default option is to add the MRTA premium to the loan principal — convenient at signing, expensive over 30 years.
A typical RM 500,000 loan attracts a one-time MRTA premium of roughly RM 12,000-18,000 depending on age and tenure. Roll that into the loan at 4.50% over 30 years and the true cost climbs to ~RM 21,000-32,000. Pay it cash upfront and you save the entire compounding gap.
Always ask both banks for the cash MRTA quote before agreeing to roll it into principal. If cash is tight at completion, MLTA (Mortgage Level Term Assurance — a separate cash-value policy) can be a workable middle path, though premiums are typically higher than MRTA.
First-Home-Buyer Schemes: PR1MA, i-MILIKI, LPPSA
Both banks participate in BNM's i-MILIKI Stamp Duty Exemption scheme for first-home properties under RM 500,000 (active through 2027). Both also accept PR1MA applicants and route through the standard PR1MA-approved bank panel. The differentiator:
- Public Bank is on the LPPSA panel and historically processes civil-servant bridging with shorter turnaround.
- Hong Leong is the better bet for SRP1M (Skim Rumah Pertamaku) applicants — the bank's high LTV ceiling and DSR flexibility translate into more PR1MA approvals on borderline profiles.
For broader context on personal financing for the same first-home-buyer demographic, see our guides on the best personal loan in Malaysia and the best credit card in Malaysia to round out your borrowing setup before completion.
Refinancing From One to the Other: Does It Make Sense?
Most refinancing math gets killed by the lock-in penalty plus legal fees. Run a quick test:
Scenario: you're 4 years into a RM 500,000 Hong Leong Mortgage Plus at 4.50%, outstanding RM 460,000. Lock-in has expired. Public Bank offers 4.10%.
- Annual interest savings at the new rate: ~RM 1,840/year (0.40% × RM 460K).
- One-off cost to switch: legal documentation ~RM 4,500, valuation ~RM 1,500 = ~RM 6,000.
- Break-even: 39 months (3.3 years).
If you plan to keep the property 5+ years from refinancing date, the move pays. If you're 2-3 years from selling, it doesn't. The break-even gets better if you're refinancing a larger loan (RM 800K+) or if SBR is rising (Public Bank's lower spread compounds the absolute interest saving).
Our Verdict
Pick Hong Leong Mortgage Plus instead if (a) you can sustain RM 55,000+ idle in the linked current account year-round (the offset beats Public Bank's headline), (b) your existing DSR is already 65-75% (HLB's 80% ceiling becomes the deciding factor), or (c) you have variable income (commission, overtime) that needs 12-month averaging to qualify.
The honest truth: the rate difference between these two banks (40bp) is real but modest. The bigger lever for most borrowers is whether they negotiate a 3-year vs 5-year lock-in, whether they pay MRTA in cash, and whether they actually use a flexi facility. Get the personalised offer from both banks before locking in.
Final step: RinggitPlus pulls live, personalised offers from Hong Leong, Public Bank, and 13+ other Malaysian banks in a single 2-minute form. No CCRIS impact for the comparison itself — the credit pull only happens once you commit to a specific application.
Compare HLB vs Public Bank — see your real rate in 2 minutesWant a deeper dive on either bank? Read our standalone reviews: Hong Leong Home Loan Review and Public Bank Home Loan Review.
Frequently Asked Questions
Which bank approves home loans faster, Hong Leong or Public Bank?
Hong Leong publishes an indicative 30-day approval timeline for Mortgage Plus from full document submission to letter of offer. Public Bank's typical retail approval window is 2-4 weeks for clean salaried profiles, but Public Bank is consistently rated faster than HLB for civil-servant LPPSA-bridged applications because of long-standing branch processing relationships. For private-sector first-home-buyers with payslips and EA forms, the two banks are roughly comparable. For self-employed applicants with 6 months bank statements, expect 4-6 weeks at either bank.
Can I get a joint home loan with someone who isn't my spouse at Hong Leong or Public Bank?
Yes. Both banks accept joint applications between siblings, parent-and-child, or unmarried partners — the requirement is that all applicants are listed on the property title and meet the combined DSR threshold (typically up to 70% household debt-to-income for first home, 60% for second). Public Bank's 5HOME Plan explicitly accepts up to 4 joint borrowers; Hong Leong typically caps at 2-3 named applicants. The non-spouse co-borrower must furnish full income documents and CCRIS clearance just like the primary applicant.
Do Hong Leong and Public Bank both accept LPPSA government bridging?
Yes — both banks are on the LPPSA (Lembaga Pembiayaan Perumahan Sektor Awam) panel and process civil-servant home loans bridged through the LPPSA scheme. Public Bank historically has shorter turnaround on LPPSA files because of dedicated branch desks for government servants in major centres (Putrajaya, Shah Alam, Penang). Hong Leong also processes LPPSA but borrowers report longer back-and-forth on documentation. If you're a government servant taking the LPPSA route, Public Bank is the more established choice.
Which bank has stricter DSR limits — Hong Leong or Public Bank?
Hong Leong publishes a DSR ceiling of up to 80% — among the most flexible in Malaysia, useful for borrowers with strong income but multiple existing commitments (car loan, personal loan). Public Bank applies the standard BNM-aligned 60-70% DSR for first-home and 50-60% for second-home, which is more conservative. If your DSR is already running at 65-75% from existing debts, Hong Leong is more likely to approve. If your DSR is comfortably below 60%, the difference is irrelevant and Public Bank's lower headline rate wins.
What happens to my Hong Leong Mortgage Plus offset if I withdraw money from the linked current account?
The offset is calculated on daily-rest balance — withdrawing money reduces the offset for that day's interest computation but does not trigger a fee or penalty. This is the structural advantage of a full-flexi loan: deposit RM 50,000 and you save interest from day 1, withdraw RM 30,000 next month for an emergency and the offset shrinks accordingly. There's no withdrawal cap, no notice period, no per-transaction fee — only the standard RM 10/month account maintenance fee. This is materially more flexible than Public Bank 5HOME Plan, which charges RM 50 per withdrawal and limits you to 1 withdrawal per month.
Is Public Bank or Hong Leong cheaper for refinancing a RM 500,000 home loan?
Public Bank's headline rate (SBR + 1.35% ≈ 4.10%) is roughly 0.40% lower than Hong Leong's standard Mortgage Plus indicative (SBR + 1.75% ≈ 4.50%). On RM 500,000 over 25 years, that's approximately RM 105/month or RM 31,500 over the loan life. But factor in your CURRENT bank's lock-in penalty (typically 2-3% of original loan = RM 10,000-15,000) plus legal and valuation fees (RM 4,000-7,000). Break-even on the refinance to Public Bank is usually 18-30 months. Hong Leong's offset feature can outperform Public Bank's headline rate IF you keep RM 50,000+ idle in the current account — run the math on your actual cash buffer before deciding.
Do both banks bundle MRTA or MLTA insurance with the home loan?
Both Hong Leong and Public Bank offer MRTA (Mortgage Reducing Term Assurance) at origination through their bancassurance partners — Hong Leong Assurance for HLB, AIA Public Takaful for Public Bank's Islamic variant, and Public Mutual Berhad's network for conventional MRTA. The premium can be added to the loan principal (compounds at the loan rate over the full tenure — ends up costing 1.6-1.8x the cash equivalent) or paid upfront in cash. Always insist on a cash MRTA quote before agreeing to roll it into the loan principal — the cash option saves materially over 30 years.
Last updated: May 2026. Rates verified from Hong Leong Bank, Public Bank, RinggitPlus, and BaseRate.MY. SBR effective 11-14 July 2025 cuts. Personalised rates may vary with borrower profile, loan quantum, and property type.