I don't know how the banks count the quotas, I suspect it's somewhat artificial. I believe it's to do with the project has taken more than 6 months from taking booking to signing SPA. in the meantime most people apply multiple loans, and perhaps some also accepted multiple LOs.

It seems the banks are hard to extend their lines, based on what the Maybank/Alliance bankers have told me and so in the end, the loans might be likely evenly distributed to all the banks.

How the loans evenly distributed among banks? By forcing lenders to accept banks that still not fulfill their quota?
I'm not sure how true the banker statement is but as to my understanding I'm among the first batch of HL loan applicants and now I have to become 2nd batch waiting to be approved? So fast they got their 1st batch limit burst?

Based on what these bankers have told me, in order for the banks to add additional lines, they want the developer to "do something" but the developer is not doing it, so it's hard to get additional lines. Alliance bank has been talking about having additional lines since a few months back but nothing till today.

So the problem is not the banks, it's the developer rather.

Without additional lines, so the loans will be more evenly distributed.

This post has been edited by tmc: Jun 30 2012, 09:40 PM

Wahh? HLB so fast limit burst???

Yup, it's like Ripley's Believe It Or Not show.
And also it's concidencely in line with your news that PB and MBB is closing their pipes too.
Any idea bro? How can bank got their limit burst in just 2 weeks?

Along the same subject, actually the rate of BLR-2.3 % is considered bad when compared to other launchings in the same time.

For me the strategy is just to get the loan for the DIBS period, after which, either I flip or if I stay on, have to quickly do another shopping, 3 years later.

Oh bro ... What I mean about PBB and MBB closing water pipe is on their approval, nothing to do with KR2 limit.

I just found out that PBB, MBB and KFH had very strict policy on
- Salary worker must provide EPF statement
- Director who received directors fee must provide Borang B

None of the documents as above, the banks no longer finance anymore. And approval must be within 70% of the mitigated nett income.

Too bad Alliance Bank capping already burst, or else, I am sure Alliance can sapu easily. Alliance limit of RM 40mil already taken since early year. Few monthsd ago, they opened another RM 40mil, as they had too many pre-approved loans waiting in their wings, it had been fully taken within just 4 working days!~

PBB, Ambank and MBB still have more than 50% of their limit. KFH have RM 80 million capping. MBB have RM 50 million capping. PBB, UOB and Ambank I not sure. Alliance Bank RM 80 mil already full.

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Added on June 30, 2012, 10:37 pmBro, I very agree that BLR - 2.30% ( the project rate for KR2 ) is really bad compare to current market or BLR - 2.35 to BLR - 2.45% ( if with MRTA )
The first 3 years of BLR - 2.30%, I have nothing to shout as they are the company who bear the interest but they shouldn't requests the banks for the thereafter rates ( 4th year onwards ) and lets the pricing to the respective banks to offer, such as BLR - 2.40% or BLR - 2.45% like most projects do.

It had been on my mind that, I am gonna refinance my loan after the lock in period expired ( for the unit I going for own stay ) subject to market at that time is much better than today's rate.

At least, they should have offer Year 1-3 BLR - 2.30% and Thereafter BLR - 2.40%

Btw, Alliance Bank had opened too many capping for this developer, which was a new developer but with solid background, don't forget that the developer also had another project running, which is KR1, if not mistaken the limit of RM 40-60mil for KR1 had been fully taken last year. So, the bank had been taken huge risk and not willing to expand the limit again since the bridging lender, UOB not even willing to offer up to RM 80 mil EF limit. MBB still have a lot of limit for KR2. Alliance Bank had been fully taken and it had been confirmed that the extension limit had been rejected.

And, don't forget that, RR is upcoming and the Alliance Bank and MBB ( the bridging financier ) is going to provide another limit for them although the project is without DIBS.

The 3rd main bank for Knox Group, UOB Bank, suppose the front runner to compete with Alliance Bank for the sales, but too bad, approval was based on after discounted price. So, even investors with LTV 70% not even wanted to apply UOB, same goes to me.




This post has been edited by Chris Chew: Jun 30 2012, 10:37 PM

Ok..as to my undertanding bank closing their pipes when reaching the limit but not this as as they stop the loans despite still has some buffer left. If this tight lending persist, can see that many dropout units will happened in next few weeks.

Anyway bro, need your some advise. If let say at the same time I applied for another loan, will the bank realise that I'm appealing for another property which I'm intend to buy too?

The drop out units only will be show out once the real S&P signing date ... I guess the developer would not inform us but to keep the units for further increase price ...

If you apply the same property loan for 2-3 banks, they can see that you are applying other bank with the code of pending and either bank code L or F ( which stands for Local bank and Foreign bank )

It would be stated the loan amount, like RM 600k, RM 595k, RM 605k ( all might be 90% of the RM 666k Purchase Price ) and some maybe with MRTA ...

But if you have suddenly one loan approval of RM 400k or even RM 750k, the bank will ask you what is the status of these loan, and if not accepted, please provide the Letter of Cancellation. For same loan amount, it is not a problem ....

Yeah too bad alliance bank extension of limit had been rejected. The banker said my loan was approved, just pending on the extension. And he wanted to give me BLR-2.4% and now all the talk is just lip service.

The extension had been rejected much earlier ... probably it was due to KR1 and KR2 is running at the same time ... and the upcoming RR as well ... So it is just increased risk for the banks ...

Hmm, I dont think we can get BLR - 2.40% bcz projects rate for KR2 only can go to BLR - 2.30% whole tenure, maximum ... that is what is I get to know ...

The developer control the DIBS package .... too bad ...

Maybe he meant BLR-2.4% after the DIBS period. Why should the developer have control over it after the DIBS period ?

But another banker ( not the alliance one ) told me some people got BLR-2.4%. I did not ask too much details.

Actually the banks can offer BLR - 2.40% after DIBS period ... but it was the developer issue ... I also can't understand why they control banks to offer such rate for their buyers, maybe something fishy behind? LOL!~

For the record, another current DIBS project is offering BLR-2.45% without MRTA. First year is BLR-2.5% somemore, but that's between the developer and the bank, none of the buyers interest.

I think the bankers usually are hoping people are not so alert to refinance for better package.

Those DIBS project with first year BLR - 2.50% and then BLR - 2.45% normally applicable to established developers, bcz they highly demand this kind of pricing ...

For KR2, I don't think so they able to ask for this rate where, banks willing to provide EF and DIBS for a new developer is consider a very kind for them ... After KR1, K2 and RR completed on time, in future they can ask for better DIBS rates ... if after 3-4 years, DIBS is still exist ...

Luckily the lock in period nowadays are only 3 years from first disbursement ... so after VP, the lock in period is almost expired soon ...

Brother inlaw went to the sales office few days ago, said many units are open now.

He got tell you which units or not?

As I know, abt 10% left which is 72 units and ..... those units are garden units and majority low floors and direct facing LRT ...

Top floor still got some units, but those double lanai ... most people quite hesitate for the extra lanai unit ...

Errr. Not sure. It was since more than a month ago I didnt visit KR2 office. Lol.

If less than 20 units, it was far more successful bcz I didnt expect anyone could buy the big size units at such price at low floors and facing direct LRT...

But developer told me they can sell it without any doubt...

If the developer is making good profit from this project, I sincerely hope the developer should provide good finishing touch. For example, I hope they could provide good noise insulation, for the least, when the doors and windows are closed, the outside noise could be shielded off. Another is to provide good kitchen cabinet set, instead of a pariah set. These are the things which are always on my mind.

anyone know why is the reason for the S&P date keep on delaying?? hmmm.. from May to June, June to July..