Hi, property value can be only 400K for first home scheme 100% loan. But I have read news that government has increased to 500K.

Any others commitment? car loan? personal loan?

Hi all, i bought a house last year below market. So i have been thinking of refinancing the house to get some cash out. Not sure whether it is a good idea or not. Below are the detail of the property & loan

Property price - 200k
Loan amount - 180k
Current market price - 260k to 380k
* house have been renovated hence planning to refinance for 400k
Bank - Public bank (my paycheck also in public bank)
Interest rate - BLR -2.4%
Loan tenure - 40 years
monthly repayment - rm800+-
Salary - rm4800 gross
- plus rm1200 bonus (monthly average)
Commitment
- 1 house
- credit cards
- Ptptn

So my questions are

1) Since nowadays i doubt i can get a loan tenure up to 40 years, is it wise to refinance coz my monthly repayment will definitely be higher for loan tenure on 35 years.

2) With my current salary & commitments, what is the maximum loan amount i can get

3) Any suggestion which bank should i refinance to?

4) I still couldnt understand the BR concept against the BLR.

Hi, my gross income is rm3750. I have a car loan of rm586 and a housing loan of rm500. can i know what is the maximum housing loan i am eligible?

Should be around this much: RM315k for the loan amount.

Thanks Azmi!!

This should get you started. It's a new format that our company just made to include refinancing commitment calculator that is calculated differently by the banks (repayment can be made in 35 years, but the calculation for approval will be based on 10 year repayment tenure)

1. Look it up, the refinancing will be based on RM360k, as such the monthly installment will always be higher than what you are currently paying for regardless of the 40-year tenure since the difference in loan amount is almost doubled!

2. You can study the table to know the maximum loan amount that you can get.

3. I have 5 banks under myself, I will propose different banks for different needs. FOr example, some people prefer refinancing the legal fees into the loan, others prefer to have MRTA financed into the loan while others do not want the MRTA at all, etc. I can help with choosing the right ones for you. Here are banks under my panel: Maybank OCBC HLBB Alliance Ambank

4. Essentially, the most important figure is the effective interest rates. your current EIR is 4.45% (6.85 - 4.4%) which is about the best rates you can get nowadays... 5 to 20 basis points shouldnt matter too much.



This post has been edited by wild_card_my: Jan 16 2015, 02:55 AM

It would be best if you could get a few other bank commitments so that you could get yourself recorded in CCRIS. Some banks do accept PTPTN prompt payment as proof that you are a good pay master, but it is best that you do get yourself a credit card or two. Just use it to pay petrol and the things you would need to pay for anywa.

Starting this year, you can get 100% if your house price is between RM100k to 500k, and your gross income does not pass RM5k

Regardless, here is what you can look into:



This post has been edited by wild_card_my: Jan 16 2015, 01:09 AM

You can use this as a guide. You are looking really good

It depends on a number of factors...

BLR - 2.1% meaning your current effective interest rates are going to be (6.85 - 2.1) = 4.75%.

Depending on the loan amount, you can get as low as effective interest rates of 4.4%. The 0.35% lower interest rates equals to RM350 savings for every RM100k outstanding balance every year.

The 100% loan scheme is limited to those:

1. Aged 40 and below
2. Gross income of RM5000 and below or RM10,000 for joint-application
3. House value of less than 500k
4. Applicants have never bought a house with a loan before, your shop loan is a commercial loan. Whether or not the bank will qualify your for the My First Home Scheme is up to the credit officer. The shop-house loan will be in your CCRIS for the credit officer to see.

Now that we have established those facts,

1. 100 or 90% depending on your luck as mentioned above

2. Same as above

3. 100% if her income and the house qualifies

edit: Any property with higher than RM500k valuation, the maximum MOF is 90% + Legal fees that can be included on top of the loan

This post has been edited by wild_card_my: Jan 16 2015, 01:28 AM

Hello, you canuse this as a guide. Subject to approval by the credit controllers though

Hi Azmi, I notice in ur spreadsheet, there is a bonous (12mth avg) column. So how will the bonus be considered since it is varied every year?

It depends on the bank, but in general they would take the past 12 months bonus, and divide it by 12 to get the average and multiply that by 80%. The same goes for commission earners.

Some banks like Maybank though, do not prefer BONUS and COMMISIONS as compared to banks like Hong Leong and OCBC. The spreadsheet already make use of these information, but it is very crucial to understand that it is an amalgam of the different bank policies put together into one. It is at its best, a guide and not adefinitive minimum or maximum loan amount that you would get.

Banks also have different policies in accepting variable payments (commissions and bonuses) in that for Hong Leong for example, requires 2 year EA form that specify the bonuses before they would accept the bonus income. With OCBC, the bonus payslip and corresponsing bank statement or EA form would suffice.

It is my job to digest all these information and present my solutions to my clients.

Can I ask will the bank consider the potential salary rise? Because for some property especially during construction, we only require to pay interest until the completion of the construction. After that, then only we started to pay the loan. Let say, it needs 3 years to complete, will the bank consider the potential salary rise in these 3 years?

Not at all, unless there are exceptions which is unheard of (at least by me)

To be honest, no one can guarantee a salary rise, and banks will work their best to mitigate their risks, as such, they will base all their clients' information based on the current situation.

However, if you are planning to change jobs, a letter offer from the new company coupled with a first month's salary is enough (subject to approval) to prove your new income levels.

The dsr for 3000 to 10000 is 85% now? Do banks take bonus in calculation for the net income?

Yes, that particular DSR limit of 85% for net income of RM3000 to RM10,000 is for Hong Leong.

1. And yes, Hong Loeng does accept bonus income. However, with Hong Leong, they would like to see you 2 year EA forms (2012 and 2013 for now, since 2014 is probably not out yet for most people) to consider the bonus income. And they have all the right to accept or reject the bonus income.

2. OCBC accepts bonus income too, to verify simply show your payslip with the bonus income as well as the reflected bank statement to support it.

This post has been edited by wild_card_my: Jan 17 2015, 09:30 PM

Hi Azmi,

Let say my sister and I want to loan for 500k. I am eligible for 300k while my sister only eligible for 200k if evaluate individually. Will the bank consider 60% of the loan amount is borrowed by me and 40% is borrowed by my sister instead of 50%-50%?

For the purpose of the application, you can combine your Income and the approval will be based on this combined income..

but in the CCRIS, for your future loan application, the banks will consider the commitments to be paid 50:50 between you and the sister..