I hope this will not be another flip flop policy.

also if their siblings and children qualify for loan, dont they already be buying their own property already? then after they already have one loan they likely not qualify for another loan unless the existing loan is small compare with income.

This is still not clear (unless you bought those 3 properties without getting a loan).

Statement says: "Bank Negara Malaysia wishes to announce with immediate effect the implementation of a maximum loan-to-value (LTV) ratio of 70%, which will be applicable to the third house financing facility taken out by a borrower."

This could mean that if you previously have taken two loans, but already fully paid them off and apply for another loan, that you will only get 70%.

still too vague. But i believe it is not affecting those with fully paid off properties.

Yes.

The measure is targetting on the loan issue only. They are not bother you have 3 properties or 30 properties.

They just don't want bank give excessive loan to people which being used as speculation purpose.

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Added on November 8, 2010, 4:46 pmBNM press statement.
They only mention about financing facilities, aka loan.




This post has been edited by cherroy: Nov 8 2010, 04:46 PM

third house financing facility

How to read this? may be "financing facility of the third house"..

don't be too happy now.

I don't think they will so strict on this.
They welcomed any buyer that able to pay off the properties.

If you pay off the loan, mean in the banking system, your name "under loan" is not there anymore.
It is troublesome for banks to check this properties is the No. how many you have as banks do not have data on those paid off one or those you bought with cash one.

Anyway, this is more a temporary measure, so whether affect the paid off or not, doesn't cause major concern. As most housing loan is long tenure one, so the new measure has little impact on those issue.

yes, you are right.. co-existing loan cannot be >=3 at the point of application, else will kena 70 LTV restriction

Did I sound happy?

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Added on November 8, 2010, 4:56 pmI also don't think it, but I also don't know since the statement doesn't address it.

This post has been edited by prody: Nov 8 2010, 04:56 PM

No you're not affected. You shouldn't be as you're holding all the risk.

@kok_pun,
Lol but what if U have had taken 3 loans except they've all been cleared; hence no current outstanding. In that case, qualify or not?

qualify....

I have clarify this personally with my loan department

@kok_pun,
So meaning, as long as U don't have con-current more than 3 loans at a time, U can still take 90% loan, is it?!

As in, this new rule won't come into affect? Ah well.. in that case, property flippers who's got loads of cash will still be able to do what they do

but who are they going to flip to? first time virgin buyer?

@cranx,
No.. the objective of the rule was so that people don't buy properties for speculations. If, so as long as I don't have 3 concurrent housing loans at the same time, this new rule doesn't affect me, then what's the point?

Then again, i'm not complaining! MUahAHaahAHAh We need some loop holes

haha... there is always a law, some fine prints and some interpreters....

based on interpretations, you are legally right to do so.

not exactly a loophole. majority of the speculators do not have the holding power yet they stretched it to the limit getting multiple loans at minimum entry.
you are one of the minority.

@cranx,
Guess I'm not the kind who dares to take such risks; nanti lose my job, lose all the houses also *oops*

this is not a loop hole.
at least less "investors" will buy new launch with this ruling now.

@wwwcomment,
You'll be surprised to know, depending on projects and location; a lot of people take less than 90% loan. May not be majority for all projects. I do know of certain projects where majority buyers are cash paying rich aunties and uncles!

This post has been edited by tinkerbel: Nov 8 2010, 05:28 PM