Hello people, the purpose of this thread is to be a guide for the forummers when applying for a property loan as well as to clear fellow forummers' doubts and questions regarding the technicalities in getting one.

ANYONE can post in this thread!!! It is NOT limited only to those with properties, without properties, only from one bank, or a different one. No, the thread is not limited to anyone. But the posts must be in the form of a question, an answer, or a guide toward applying for a property loan.

Now, before you guys point out that there is already a thread such as this in the CLASSIFIEDS subforum, let me be clear that this thread is vastly different in the the sense that, in this thread:

1. Everyone is encouraged to ask for help in regards to applying for a loan, especially when the question is very very technical (i.e I have just started working and have no CCRIS record, how would this affect my application?)

2. Everyone is welcome to help other forummers by answering their questions. This way, we can leverage on the sifus' experience in applying for a loan.

3. This is not a classified thread, please refrain from making a post with the sole purpose of promoting your very own bank OR mortgage websites. This thread exist purely to help people with the technicalities in applying for a loan.

No blatant advertisements are allowed in this thread. If you want to advertise, you can do it in the thread down in the classifieds subforum! Over in that thread you can as for quotations, and the agents can advertise their services. THE LINK

Examples of useful, helpful, and practical postings that are allowed in this thread:





Examples of posts that are not allowed in the thread. If you want to advertise blatantly you can do it in the classifieds thread.






This post has been edited by wild_card_my: Jan 29 2013, 10:25 AM

PRODUCING SUPPORTING DOCUMENTS FOR FINANCING

For the purpose of producing the supporting documents, it is important that the clients adhere to the strict guidelines set by the bank to avoid any delays during loan processing. Each bank has a different guideline, and the ones listed below are for the exclusive use of OCBC and OCBC Al-Amin’s residential and commercial property loan excluding business-charged loans.

To print online documents properly such as the bank’s transaction history, simply load the page and key in CONTROL and P simultaneously and the print window will appear. Choose the correct printer and click print to proceed. It is important that the print-outs do not have any scroll bars at the bottom or the side of the page.

LIST OF SUPPORTING DOCUMENTS REQUIRED

1A. Previous 3-months salary slips:
a) The net pay in your salary slips must tally with the amount credited into the bank account OR the EPF statement.
b) The cut-off date for the acceptable slip is on the 7th of each month. For example, if today is the 4th of June, the slips from February, March, and April are still acceptable. But if today is the 9th of June, only slips from March, April, and May are acceptable.

1B. Previous 6-months salary/commission slips for:
a) Commission earners
b) Over-time earners
c) Variable allowances such as living and traveling allowances

1C. Tenancy agreement:
a) Must produce 3-months of bank statement OR transaction history to prove the amount credited
b) If tenancy agreement is not available, must produce 6-months of bank statement OR transaction history

1D. Dividend statements
a) Must receive consecutive dividends for at least 2 years
b) Must produce investment pass book to show dividend was reinvested OR;
c) Must produce bank statement OR transaction history to prove dividend credited

2. Bank statement OR the transaction history of the bank:
a) The bank’s logo must be present on the documents.
b) Most banks branches charges a fee for the production of bank statements and certain banks require a few days of processing. As of such, transaction history printed online is preferable.
c) If the transaction history is produced, please head to any of the bank’s branches and have an officer to certify the copy. Each page of the document must be rubber stamped and signed by the officer.
d) Maybank2u’s printout of the transaction history must be accompanied by the account details page as demonstrated in the attachment.

3. Latest EPF statement:
a) EPF statements can be printed online or physically through RHB Easy Kiosks, selected Maybank, CIMB, and RHB branches, as well as EPF branches.

4. Front-back copy of the NRIC:
a) You are allowed to cross the copy but avoid smearing important information such as the NRIC number and address
b) Front-back copy in a single page is preferable

5. (For property purchasing) Booking receipt OR Letter of intent-to-purchase

6. (For property refinancing) Utility bills (Astro, TNB, JBA, TMNet)

7. (Optional but important) Individual or Strata title of the said property:
a) Such titles are only available when the owner has paid the lawyer for the MOT usually in the range or thousands of ringgit, and a few years after the property has been completed.
b) As such, not all properties have the title, but if you have one that would be to your best interest

Is SPA is required to apply loan?

U are working with ocbc or outsource

No it is not. But I can only speak for OCBC ya.

All you need is either:

A. a booking receipt
B. letter of intent to purchase
C. If you are refinancing, you only need the utility bills with the property address in it. If not, can use SPA

Sometimes the bank allow a pre-approval too, but it depends heavily on the income of the buyer

Outsource :|

But hey, I submit my documents all the way to the HQ in Masjid Jamek by hand! So if anything I am just as quick

This post has been edited by wild_card_my: Jan 17 2013, 05:04 PM

any new creative workaround(s) to be able to have > 70% loan for 3rd residential houses onwards?

Well... one of the options is to opt for renovation loans. I know a couple of banks that offer them. They all have higher interest rates than the residential loans but lower rates than personal loans.

With OCBC it is BLR -0% (6.6%) but the caveats are:

1. Tenure is only maxed at 10 years
2. Higher rates than residential loans themselves
3. You would need to settle the 20% extra DP first, have the loan executed, then only you can get back the 20% drawdown.

which type loan will u advise ur non bumi client to take between conventional and islamic loan?

Allow me to share some background story: In the effort to make Malaysia as the Islamic financial hub of asia, the country has implemented a few policies to promote Islamic finance. Such policies cover pretty much all aspect of financial services including property financing.

Advantages in taking islamic financing (as far as OCBC is concerned):

1. No lock-in periods

2. 100% waiver on the stamp duty (loan legal, not spa) for the refinancing portion (for refinancing cases). Stamp duty for the loan legal fees is 0.5% of the financing amount.

3. 20% waiver on the stamp duty (loan legal, not spa) for a new house purchase loan financing, or for the cash-out portion when you refinance your house.

4. When you sign a contract using Islamic finance, it is actually a diminishing ownership between the bank to you. Meaning if you start the contract with the property being held by you (10%) and the bank (90%), over the years, the ownership is transferred from the bank to you until you own 100% of it. In the mean time, you are paying rental to the bank for staying in the house that you do not fully own. I think the contract itself makes it more fair that a conventional one. But this is just a contract speak, practically they are the same.

So in my humble opinion, technically there are a few advantages for Islamic loan, and no disadvantages as far as I can tell. As far as the "Islamic" term is concerned, it is just a name. What's important is to be profitable right?

This post has been edited by wild_card_my: Jan 18 2013, 10:37 AM

If a non bumi apply for Islamic Housing Loan can ah? And can get 100% loan or not if apply for condo around 400-450k? Sorry...i'm very new to applying this house loan. Getting fed up with renting... time to have something . If this question sounds unappropriate, sorry yah.

Of course can la hahaha. Like I said, for all intents and purposes, they are the same. Many of my non-bumi or non-muslim clients opted for Islamic loans anyway because they are profitable.

For 100% loan the limit of the house price is RM400k. And the maximum gross salary for 100% loan is RM5000.

Renting can be useful for people who move around a lot or is uncertain that he or she will be in that area for too long a time. A trick that some of my clients use is to buy a house in a good area, rent it out to the public, then rent a house for own stay. Rental income can be taken as income, so in fact he would appear as if he is making more money a month as opposed to buying a house (with loan) and then staying in it by his own.

This way the client could choose to live wherever he wanted (he jump jobs a lot) while at the same time it does not damage him financially.

This post has been edited by wild_card_my: Jan 18 2013, 11:17 AM

Thanks for the kind clarification, will explore more on this islamic loan for my next loan application.

sometime renting is better than owning. The owning is tedious when quite rent, assessment fee and insurance are big chop. Less responsibility for liability and much more freedom to relocate.

I seems like stuck to a place when suddenly my office relocate very far away. Everyday traffic is making me mad. A bit regret to buy a house to live in. Should have rent it out.

What to do, never expect the unexpected, now tied up with commitment or worst come to worst, find another job.

Well yeah that's the thing. I have a few clients who buy houses with the purpose of renting them out, but only rent for his own living. Sure there are things he could not do with the house when renting, but the advantages seem to be more than disadvantages.

yeah, people always says owning a house is "home sweet home", but sometime u need to sacrifice on others things to balance it.

Apply the same to my wife, i cant simply move away because is very convenient for my wife to go to work less than 5 minutes.

The commitment, lifestyle, liability, repayment, inflation, maintenance and security to own a unit to live in is very stressful especially in Klang Valley environment

Ah, husbands always think about their wives first. Same for me, and sicne I work on my own, as long as the house is in KV, which ever is closest to the wife's workplace is the place to be.

To keep in line the thread. Let's look at a few comparisons. There are 2 guys, Johny and Larry. They each have a nett salary of RM5000k, and have a house with installment paid RM1000 a month:

1. Johny stays in his own house because he likes it that way. At RM5000 salary, his debt-service-ratio is 80% = RM4000. His commitment is RM1000, so he has another RM3000 left to be used as debt payment.

2. Larry rents a house for RM1000 for his own stay, and rented out his own house for RM1250. Only 80% of the rental income can be used as part of the nett income calculation (bank guideline), his rental income is then RM1000. So his nett salary is RM5000 + RM1000 = RM6000. Keep in mind that the bank does not know that Larry is renting a house for his own stay. His debt-service-ratio 80% of RM6000 = RM4800. His commitment is RM1000, so he has another RM3800 to be used as debt payment.

Larry can buy more houses and rent them out while Johny has to make do with a smaller one.

Tada~

This post has been edited by wild_card_my: Jan 18 2013, 01:12 PM

Got it. So I need 5k to have 100% loan and with 400k house. At least now I got some basic info to start looking for house/condo with that bracket. Thanks bro .

Eh, you need to have RM5k and bellow as your gross income you know. Not RM5k and above. If above tak layak for 100% loan already hehhehe

This post has been edited by wild_card_my: Jan 18 2013, 04:26 PM

Is it loose the requirement?

Loose requirement? Im sorry but I do not quite get what you mean.