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.

Sorry, I meant is it easy or hard to get approval from renovation loan?

Well that depends on your credit rating - your income vs commitments, just like when applying for the housing loan (HL)

When you get your HL approved with OCBC, you will also get preapproved for the renovation loan.

Hello,

Firstly thanks.

im in the midst of asking around to obtain a bank loan
1. House price about 320k
2. Asking loan is 250k.

I hope im not overstepping the post...

The house belongs to my parents, so the 250k will go to them. What are the options I have.

1. Is it possible to apply full 250k, or am I only entitled to 90% of what i am trying to borrow?
2. What is the amount that i need to fork out to get things going? In terms of lawyer, other fees...

Thank you very much.

1. The bank usually allow 90% of financing of the house value.

2. So the bank will get an evaluation of the house, so if it is valued at RM320k, then the bank will allow a financing of RM288k

3. For some banks like OCBC, you do not need to fork out anything for the "Moving Cost" beacause everything will be included into the loan. For a loan of RM288k, the legal (and disbursement) fees is RM5114, the valuation and stamp-duty fees are RM786 and RM1466 respectively.

4. So essentially you are not borrowing 90% of the house value but about 92% if you include the LVS fees as well.

Is this house complete (subsale) or under construction?

This is a good thread. Keep up the good work Faiz.

Would be good to have more bankers coming in to share more info for the benefit of the forummers who are making their first purchase.

Mr Dario,

Your pinned lawyer corner thread has closed permanently?

This post has been edited by KOHTT: Jan 27 2013, 12:27 AM

Version 3 is under construction at the moment and VP will be handed upon completion.

Thanks for the reply!!

The house has been completed back in 2000 or 1999.

1. Can you elaborate on point 3? Does that mean, i dont have to fork out anything to obtain loan 288K? What do I need to get started?
2. What kind of monthly rate are we looking at?
3. What is the best package for me. I am 30 years old , married with one kid.
4.Instead of borrowing 288k, can we ask for 250k?


ps. can we proceed in PM? so i can share with you more personal information?

Thanks again for your time !

1. yeah, you do not need to fork out anything because there is no processing fees, and the Legal (plus disbursement fees), valuation, and stamp-duty (LVS) fees are all included into the loan. However, you are responsible for the 10% deposit as well as the SPA/Stampduty(SPA) fees - let me know if you have not gotten a lawyer because combining the Loan and SPA lawyers is good because they can deal with themselves as opposed to having separate lawyers for loan and SPA

2. About RM1257 just for the house loan (RM288k), and RM32.17 for the LVS fees (RM7366)

3. For you, a flexi package for 40 years tenure, at a rate of BFR -2.3%

4. No problem! If your house market value is RM320k, you can borrow up to 90% if the house value, but you can borrow less if you want!

Yeah, lets do it through private channels!

Great thread.

1. What is the formula to qualify for loan by using guarantor? And how does this affect the guarantor in terms of his future purchase?
2. What is the policy in recognising the income of a Malaysian works in Singapore?

Thank you!! will take this into PM !!

Hello kbandito,

1. Different banks have different ways to evaluate a guarantor, so again, I can only speak for OCBC and OCBC Al-Amin. With us, a guarantor must:
a. Have 2 housing loans already
b. related to the borrower as spouse, parents, siblings.

2. The policy is that we use an internal OCBC exhange rate for singaporean dollar wage to be converted to ringgit Malaysia. The exact converstion rate is unknown to me, but it is NOT FAR from the current conversion rate. The banks use its own rate because it is easier to calculate wages without too much fluctuations. Also, 100% of your Singaporean nett income is considered as your malaysian nett income (as opposed to bonus and rental that only accepts 80%)

This post has been edited by wild_card_my: Jan 29 2013, 12:11 PM

If my wife and I have a joint-loan property years ago, can I do anything so that my wife'name can be out of the loan (my salary is adequate to finance the loan)?

Do I need to re-finance to get my wife's name out?

Thanks for helping!

Hello,

Yeah, in this case you can:

1. Buy her share in cash
2. Refinance so that the house is charged only under you.

Doing either of this will clear her name from CCRIS records

This post has been edited by wild_card_my: Jan 29 2013, 03:56 PM

solved by own

This post has been edited by kyoushi: Jul 20 2015, 02:16 PM

Hi,
I am new to purchase a property. Referring to the previous post, I saw that Islam banking will provide 100% loan??

I'm now interesting with a condo unit cost around 340k. I was thinking to get a 100% loan for my first home scheme. But i saw islamic bank is also will provide 100% loan?

Greeting Faiz,

I also interested to know same like eumoramaniac. I'm currently interested in a house with price Rm400k. My wife salary and mine is respectively RM4k + Rm 4.6k. We are seeking advice in securing the 100% loan and want to know what all the breakdown of charges that we need pay. Thank you for your help

Great thread,

can you point me to the link for printing out EPF statement?

free bump for this great thread ^-^

-solved-

This post has been edited by Puchong Family: May 26 2013, 06:47 PM

Another bump, but while I am here, might as well add some questions.

Is CCRIS updated every month (how frequent)?

Is it 100% guarantee that there's no lock in period for OCBC?

Thanks.

1. It is updated every month, as in on a monthly-basis by the creditors (banks),but there may be a lag of 1 month so do not be surprised when you see that the latest month column in your CCRIS is empty. This is not a hard and fast rule, though. Some banks are fast with updating your information to CCRIS

For those who are settling their loans to get that particular loan entry out of your CCRIS record, then it is prudent to wait for about 1 and a half to 2 months because the creditors (banks) may take their time to report to CCRIS that your loan has been closed.

2. The no-lock in period only applies to OCBC Al-Amin. Lock-in period applies to conventional OCBC housing loan.

hihi...what kinds of documents should i get after buying from developer including successful loan application from bank?

It appears that i have nothing on my hand,only some letters and correspondences...

1) SNP?
2) Redemption Statement?
3) Title Deed?
4) Loan Agreement?

Help.....Thanks

just curios when do you actually pay the balance of the house price? Let's say I got 70% bank loan. Is it before S&P or after S&P? By when do I need to pay until penalty is imposed? sorry noob here.

Need your advice,
I had 1st house purchased and just refinancing. Bank value 500k, refinance 350k.
Now I intend to get another new house around 650k. Will I eligible for 90% loan or otherwise?
My commitment is 1.5k/ month and rental is 1.4k/month.
Current nett salary is 3.6k. My company had quarterly incentive average 4k/quarter.
I would intend to loan 550k. Can I use my parents property as gurantor or grant what ever? The property is fully settled.

Thank you

park here for later revision

Hi, hope this thread is still alive. Want to ask, my parents have a house, rent it out. Lets say the property value is rm400k. Loan to bank left only around rm100k.

So, my parents are planning to give the property to me. So, is it possible if when applying loan I state the value of the property rm400k, but only ask for RM100k finance? the amount is just used to cover the remaining old loan.

And if in this scenario, can take out epf rm40k or just rm10k?

In your case, why don't just ask your parent grant your name as the ownership of the house ? You going to loan 100k and cover the existing loan?? It's does not make sense for me..

There is still a balance of 100k with the bank. Can just change ownership of the house without changing the loan name?

Hi all bankers and agents :

We are husband and wife would like to refinance one of our properties and getting other unit of property.

(A) Cash bought a property and now want to get loan for it.
Details of borrower :
Age : 40 year old
Salary (Nett) : Rm2200 (Without contributed to EPF, but with
bank statement proved.)
Rental Income : Rm1200
Commitment : Rm6000 total outstanding of credit card.
Case : Ctos case just cleared on Feb 2014

Q1
It will be taken as new housing loan for 35 year tenure or consider 10 year refinance loan?
Q2
Any problem to get loan with the just cleared Ctos case?
Q3
Able to get 100% loan amount from property value?

(B) Details of borrower : ( Purchases case)
Age : 37 year old
1st Job Salary(Nett) : Rm3700 (EPF contribution exemption
approved by Government )
1st Job Fix Allowance (Nett) : Rm400
2nd Job Salary (Nett) : Rm2400 (Without contributed to EPF,
but with bank statement proved.)
Rental Income : Rm1500
Commitment : Rm6000 total outstanding of credit card.
: Rm 2040 monthly repayment for two properties.
Case : Purchases a property price
Rm300k but bank value only Rm270k.
Q1
Able to obtain loan for property bank value Rm270k?
Q2
Any case for bank not taken 2nd income in calculation?
still able to obtain loan for property bank value Rm270k with only 1st salary and fix allowance?
Will the following be help to improve the income?
Got Other property which SPA and loan from bank under 3rd party name, monthly repayment Rm670, current rent out Rm1400. Have documents proven the said property under us. (Not SPA documents but from lawyer firm). Tenancy agreement under our name as well.

Basically we need to solve :
Cash out the cash bought property from getting bank loan which borrower just settled ctos case feb 2014, for the couple to purchase a unit of property priceRm300k, but bank value only Rm270k, need to pay 30% down payment as it is 3rd properties and top up the difference of purchases value and bank value; which total Rm126k excluded other fees.

If any banker or agent can answer our questions and provided easy, good interest rate package and better bank value for both case, please pm us. We will give you the details of properties.

Thanks a lot

What is the impact if BNM change to other plan by not using BLR as reference anymore?

Existing BLR user still using BLR or changed to follow new plan as well?

According to this: http://www.bnm.gov.my/index.php?ch=en_pres...ess_all&ac=2976



Well, it appears the current housing loans will remain to refer to BLR/BFR. It's only for the new loans/refinancing executed after 2nd January 2015 that will use the new Base Rate.

However, as the Base Rate changes, so will the BLR/BFR.

Anyone mind to share the process of refinancing?

I own a condo for 5 years with my wife
and now we are getting our second house

is there any luck to get refinancing for first house so that we can get more fund on renovation?

Wow, this guy is good. Risk taker.

Example :

current commitment : 2.1k /500k housing loan

if i use a 4-5k tenancy agreement, for this house,

+ my job only freelance, tak tetap,

possible i loan another 200k for my family house?

please advice