Hi all sifu,

With Salary 2.5k, no other debt except credit card.

1. How much housing loan roughly can I make?
2. If the bank only approve 90% loan, can I withdraw my epf account 2 to pay for the deposit? what is the procedure.
3. How much the cost of all the legal fees,stamp duty and other misc expenses ?
4. Do bank include the bonus that we earn to calculate the loan ? my company min. bonus is 3month. never fail.

This post has been edited by amerz: Aug 2 2009, 05:01 PM

Hi,

Most banks website have some kind of home affordability calculator that you can use for an estimate. Based on the calculator I found on the RHB web site, the answers to your question are as follows:

1. Around ~150k
2. Yes you can. You should get all the necessary documents (you can find the full list at http://www.kwsp.gov.my) and submit the form with the supporting documents to your nearest EPF office. It normally takes 2-3 weeks for the money to be credited to your bank account.
3. Normally depends on your house price. You can find a useful calculator here:
http://thestarpropertyloan.money3.com.my/f...Calculator.aspx
4. It depends on the bank. Some banks I talked to are not keen on counting the bonus, because people have to pay house loan every month, and not at the end of the year.

i tot 2.5k can stretch to 200k like that ?

Yup.. possible..

thanks normaldude for the info, planning to buy a property by next year. 150k house, don't have many choices. what a sad thing~

200k house, would be around 1k per month rite?
deduct 10% deposit, 180k housing loan.

about the s&p and legal fees, does some bank provide absorbing all the fees into our loan?

This post has been edited by amerz: Aug 3 2009, 02:47 AM

you can absorb the bank's loan legal fees. its called free moving cost. but your s&p legal fees and stamp duty i haven't heard before.

This post has been edited by paultantk: Aug 3 2009, 07:52 PM

For a 180k loan (assume MOF 90%) and interest rate of 3.5%, the repayment amount would be RM ~810. I believe you can push your loan eligibility to 200k+ as some banks would consider the annual income more than others. My estimation is probably worst-case scenario.

S&P and legal fees can be covered by the bank, they will just quote you a higher interest rate to make up for it. Look for the "zero moving cost" or fondly known as ZEC. There's also a few things you can do to improve your loan amount.

E.g.:
Some banks offer a 40 year loan tenure
Some banks have up to 20% lower installment amount, and increases the amount for the later years
Some banks look up to 40% of your monthly salary

You will need to scout around and find the best loan that suits you. If you think you can't get a good place with your current budget, there's no harm to wait until your salary increases a bit more.

You can stretch your financing to longer term and due to lower rates, you will ensured to pay lower IF only the rates stay low.

If there is substantial changes, you will be squeezed to pay more.

Thus, it is only you can decide whether it is worth. Furthermore, you will fork out say, RM1K - deduct EPF/SOSCO, basically you will have half of your income to go thru the month... That is if there is no changes in the rates.

Assuming the rates does go up to say 2%, your interest payment would have changes to additional RM3,600 p.a. (RM300-00) and your repayment had to change also to higher instalment to cover the changes in interest. Food for thoughts.