First of all I think this topic is a bit cross related between Property+Finance+ Business. But I decided to post in property talk because the main concern is about the requirement to have my housing loan approve by the bank.

Here is my situation:
I am planning to get a condo/studio within this year. Somewhere around rm 250k -350k (max). I try to keep track on a few newly launched properties, those which will only be completed in 3-4 years later. The problem i foresee now is with my housing loan, even if I am able to have enough down payment.

I am a self-employed for 3 years now, providing ID & 3D visual services. I only registered my sole proprietorship company April 2010 (1 year old).
I have opened my Current account for about 10 months. Ever since most of my income are banked in to that account. Expenses are then transferred to my saving account directly.

My problems are:
1. I do not have a fixed monthly "salary" or any similar records. My company transaction is inconsistent every month...
2. I do not pay my EPF (ever since I work by myself)
3. I have never pay my TAX!!

Housing Loan Requirement:
I have a brief talk to Maybank staff at Mapex. This is what I find out:
1. Income Tax x 2years
2. Current Account x 6 months
3. Borang A/B

For Item 2, I definitely have no problem. I am not too sure what Borang A/B is even after I read KWSP pagethis:

For Income Tax, can I just report any amount for the last 3 years??? And for the first 2 years I do not have the company name. Can I still report my income? And as for EPF... will they look into those when consider approving my Loan?

I have another question. Is it even advisable to use my company account to loan ? Since I do not have monthly salary and record.. or should I start having a system where monthly i get my fixed salary to make thing easier?

My current Loan:
1. Car Loan (total 9 years. payed almost 4 years)
2. Parents House loan in hometown (30 years. with my sister & my name. payed 3 years)

All my questions all related to one purpose= to get my housing loan approved.. Can anyone please advice? perhaps there is a better way? Thanks a lot!

Sole prop is not a company. By borrowing as sole prop is the same as using your own personal name to borrow. You might be lucky in that the government is encouraging people to own their first property. For property less than RM220k and your earnings must be less than RM3k. Personally you should start preparing ground work right away. First to pay EPF as a self employed. At least you got statement from EPF stating how much put in each month. Then after 12 months, you should be good to go.

Otherwise use the old trick of pledging FD, if you have.

filll up and submit your borang B to HASIL for your 2010.
if you can proof your yearly income more then 36k or above then should be no problem.

otherwise you need to find property that less then 220k.

Best u share how much is ur company transaction every month.
Banks may consider taking 10 percent of total turnover if self employed

Fixed deposit also helps

The thing with sole prop is banks are generally more suspicious compare with sdn Bhd. Especially in this case a freelancer. Not that easy.

Maybe u can register Sdn Bhd instead of sole prop. U can pay yourself <3k p.m. to qualify. Got to pay some set up fees tho'

can't lar...
Sdn Bhd cost about RM4000 - 5000 per annual for secretary fee, audit fee ...

Bro,how is ur thing going on? i also face the same problem.

This post has been edited by pandalon: Jul 14 2011, 03:16 PM

Just tumpang, what if no filling up the income tax borang. Can we backdate the income tax payment?
What if the company register as enterprise, since it doesn't need auditor. But how to prove to income tax that we are earning that much of money? Can we just put in the amount and just pay the tax to govt?
If put FD how much can we put in?

tax is the best proof (with tax receipt).... with your ssm - company registration prroof

ppl already say never submit Tax...now backdate is too late...

So does it mean that TS cannot apply for housing loan since he has never payed tax before?

So what can he do now?

I am almost in the same situation. Would love to know more.

i am also in the same situation.my fren advice me to set up sdn bhd. but i worry on the additional cost such as auditing fees etc. if i want to open enterprise, will it cheaper.

Pay tax, and pay the tax fine.

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Added on August 8, 2012, 1:08 pmNot late, they are more then happy to receive your payment.

This post has been edited by kelvinfixx: Aug 8 2012, 01:08 PM

So should I pay the tax 2 years back or 1 year is good enough?

Just find a accountant and do a account for you and help you submit your tax.
Should be some fine or penalty there. But what to do, it's worth rather than you can't own any property.

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Added on August 8, 2012, 5:18 pmPay according when your company registered.
But before that, income tax may question you what you doing before u setup your company.
They might count back all the taxes after u graduated.


This post has been edited by Renee: Aug 8 2012, 05:18 PM

What shud i do if in the same situation? Register new company gotta wait 2 years?

I m self employed too (sole prop).. No epf records..

You have to declare tax for you to get the loan approval.. At least 2 years record.. Without it.. I dun think its possible..

Unless of course you cough out 30% downpayment with 30% downpayment.. U need to provide them 1 month bank statemnet only if i not wrong..

I got my loan from ocbc, cimb, hong leong and ambank..
All i gave was 6 months company bank statements, my 2 years tax declaration.. Got all my offer letters in 1 month.. All bank gave me 90% loan..

This post has been edited by wanchenghuat: Apr 24 2013, 01:19 PM