Hello all,

First time property buyer here. Seller said the selling price is RM120K. Bank's loan offer is 110K (they based it in property market value) which I find OK and signed the offer letter.

Lawyer said, the S&PA will show 110K as amount of the property instead of 120K. Is this correct?

Thanks for any answer on the above.

no correct, SPA must be 120k

Loan agreement = 110k

Appreciate the quick reply, skng03. I need to talk again to the lawyer then. I have to sign the S&PA next week already but will not sign until the paper has been revised with proper amount.

Thanks again

ya, should be the selling price and not the loan amount/ actual value of the property...therefore 120k

normally bank loan if 90% will be somewhere around 108k if based on market value of RM120k, if bank valuation is 110k then 90% of bank loan will be only 99k only. Hence should be RM120k not 110k.

leongal, thanks for confirming that it's the Selling Price but not the property value!

Tohsan, the bank offered 85% of 110K which is 93.5K only but when I mentioned the property include a car park worth 7K with fully furnished and renovated aparment and I beg for higher loan that they can offer... the officer offered 110K which I agreed and I am very pleased. Very cool officer at OCBC bank.

maybe he is pulling your legs by offering you lower amount 1st rather than higher limit becos they are "kiasi" bank

Right and I agree that most banks are kiasi while some are malas.
I told OCBC bank officer that I'm waiting for other banks offer. He immediately did his job in a week and gave me the best loan they can offer

BTW, I regret going to Citibank for home loan. Made me wait almost an hour (twice!) and I have to chase the officer on phone calls about the status of my application. When they called me after 2 weeks, I told them I don't like to deal with lazy people anymore.

Hope the lawyer will revise the S&PA soon Not going to sign it if the property value is shown instead of selling price.

Thanks all!

loan agreement should be RM110k, S & P should be RM120k, btw why ur lawyer stated RM110k?? he should know exactly the price u and seller agree to sell and buy

btw.. i though Citibank work out things quite fast?? btw... maybe its branch not that much... so response is slower now... what is the rate OCBC bank offer u??

I don't know why the lawyer stated 110K but they said, the bank told them so. I told them to look at the S&PA of the seller that also have selling price from developer in the S&PA and not the seller's loan amount. The lawyer was assigned by the bank and I was not given a choice. They are OK to talk with though. Hopefully this document will be revised before the schedule to sign.

That's what I thought about Citibank as well which is why I consulted/applied to it first (before applying at Maybank and OCBC). Yeah, could be the branch or the officer only but they wasted my 2 weeks.

Sorry, I'm first time buyer so I'm still confused on rate the banks is offering. The offer letter says, Term Loan - (a) BLR - 1% pa on monthly rests.
Is that the rate you are referring?

This post has been edited by dmatthews: Apr 1 2010, 01:01 PM

as a buyer, you have the right to choose your S&P lawyer; only you got to stick to the bank's panel lawyer for loan agreement

don sign the loan agreement til they give you a satisfy answer, try apply for loan tru other bank as well see whats their offer.

This post has been edited by Tohsan: Apr 1 2010, 01:22 PM

Thanks for the info, leongal. Was wondering myself after I signed the offer letter (wheteher I need to get a lawyer) but the bank officer said "The lawyer will call you for S&PA and loan agreement and other verification thingy to be handled by them". So I waited, in 3 days the solicitor called and advised me of their fees and documents needed (just my IC only).

I guess, it's late for me now to bring this on to another lawyer (except and if, they won't agree to state the selling price in S&PA). I hope I don't have to do that as I want this done soon but properly. Thanks again

---

Added on April 1, 2010, 1:25 pmThat's possible? I did not know. I thought.. once we signed the offer letter.. the deal is done
Now I know it's possible to cut the deal if I have not sign the loan agreement. They need to revise the S&PA then. If they won't, no more deal even if I like the property soon.

Thanks again for the advise

This post has been edited by dmatthews: Apr 1 2010, 01:25 PM

u r wrong, as long as you didn't sign the loan agreement you are not tie up with them, no contract sign, you still can reject their loan. Don worry you wont bear any monetary consequences. This is your legal right!

This post has been edited by Tohsan: Apr 1 2010, 01:27 PM

I'm glad I found this great forum with great advise! I'm learning more each day
The lawyer just called and said they will discuss it with OCBC bank and will get back to me afterwards.

Remember to write to them request them to change the amount to RM120k just in case.

Yes correct this is the "rate" i referring to hehe... btw just to share with u.. current BLR is 5.8% but there is a cheaper BLR rate which is 5.75% offer by Affin Bank.. u can try to ask Affin bank as well if u haven sign the loan agreement with OCBC

yes u r right.. u can search S & P lawyer urself... dont have to choose those offer by the Banker... there are lot good lawyers out there... ^^

yes u are safe to cut the deal if loan agreement haven signed

yes agree with Tohsan

Thanks again everyone!

The lawyer and the bank agreed to display the selling price in the S&PA. They explained that the reason to put the loan amount is to lower the stamp duty fees and to show the real value of the property. They understood though my concern so all is well now. The lawyer will amend the S&PA before the seller and I will sign

Many thanks again!

Joey85, glad to know that there is another bank that have lower BLR. I guess, I'll pass now because of the time spent in this purchase has put my energy somewhere already LOL
Now planning to do renovation and might apply for Personal Loan to other banks or Home Xtra by OCBC. Will see if Affin will be able to provide such loan with great rate too.

dun be too excited yet; there's still a long way to go; what you need to do - is to monitor your lawyer closely and get them update you on the progress (most of the time, they won't call you, so it is better if you take the initiative to follow up with them)

congrats too...

Noob Question
10k d/p need to pay to vendor or lawyer?

looking for housing loan too. i need to pay 10% from 150k n
i got 15k rite now. but dunno to whom i need to pay d/p to