Mortgage Affidavit Template for Malaysia

A Mortgage Affidavit is a crucial legal document in Malaysian property transactions that provides sworn verification of key facts relating to your property mortgage. Whether you're securing financing, transferring property rights, or resolving disputes, this document serves as official evidence under Malaysian law and must meet strict legal requirements.

When do you need this document?

You'll need a Mortgage Affidavit when applying for property financing from banks or financial institutions, as lenders require verified information about the property and your ownership status. The document is essential when transferring mortgage obligations to another party or when discharging a completed mortgage to confirm all obligations have been fulfilled. Property disputes involving mortgage rights often require this affidavit as evidence in legal proceedings. Additionally, if you're dealing with matrimonial property where spousal consent is required, or if you're acting through a power of attorney, the affidavit becomes necessary to establish proper authority and ownership.

Key legal considerations

Your Mortgage Affidavit must include complete deponent identification with your full name, NRIC number, occupation, and address to establish legal standing. The capacity declaration section requires clear statements about your authority to make the affidavit, whether as the property owner, authorized corporate officer, or legal representative. Property details must be comprehensive, including precise title information, lot numbers, and complete addresses to avoid any ambiguity. The mortgage details section should specify the exact loan amount, lender information, and terms to ensure accuracy. Be aware that false statements in an affidavit constitute perjury under Malaysian law, carrying serious legal consequences including potential criminal charges.

Legal requirements in Malaysia

Under the National Land Code 1965, your Mortgage Affidavit must comply with specific registration and documentation requirements for land dealings, including mortgages classified as 'charges' under Malaysian law. The Statutory Declarations Act 1960 mandates that the affidavit be sworn before an authorized Commissioner for Oaths, magistrate, or other qualified officer to be legally valid. If you're executing the affidavit through a representative, the Powers of Attorney Act 1949 governs the delegation requirements and authority verification. For Islamic financing arrangements, additional compliance with the Islamic Financial Services Act 2013 may be necessary, particularly regarding Shariah-compliant mortgage structures. Corporate property owners must ensure their authorized officers have proper board resolutions and corporate authority to execute the affidavit on behalf of the company.