From my experience:

1. If you ask for a rate adjustment (without refinancing, so no legal fees) the newer rate may be a little better than what you currently have, but not as good as the market rate available. Perhaps you could get BLR -2.2%? I can't be sure, but usually it is a little worse than the market rates.

2. Yes, there will be a new lock-in period

3. If you ask for OCBC to adjust the rates, then no, you dont need to pay for any legal fees.

- Faiz Azmi 013 3693993

There are many types of Islamic housing loans, there are the fixed-rate ones of the old, and there are the newer Islamic loans like the Musyarakah Mutanaqisah that is based on a floating rate such as BFR - XX% (just like conventional floating interest rates using the BLR).

The old ones like BBA and Muradabah are based on fixed rates and I wouldn't recommend them.

I will focus on the newer ones as these are available and beneficial to you. The Musyarakah Mutanaqisah is similar to the conventional loan in many ways such as the interest calculation, interest rate, early repayment ability and capital repayment. The concept is different though, in that it relies on the bank and you joining together to get the property, you paying 10% (your DP) and the bank paying 90%. The ratio of ownership is then as is: 10:90

As you pay your loan installments, which is made of your INTERESTs (Profit) + PRINCIPAL, you are actually buying back the portion from the bank, as such at the end of the tenure, you would own the property 100%.

Islamic loans (MM) has a benefit over conventional since it does not have any lock-in period. The interests are similar to the conventional, and the calculation of the interest is based on reducing balance just like conventional. As such, it is in my opinion as a mortgage broker that Islamic loans can be more beneficial for the clients. But I can do conventional loans too if there are requests.

This post has been edited by wild_card_my: Dec 10 2014, 07:38 PM

Hello people! Lucifah the STAFF has created a thread about loan mortgages in the PROPERTY TALK subforum. There are more traffic there at any time than it is in the CLASSIFIEDS subforum that we currently are in.

This current thread we are in will probably stay opened, and I will still visit them from time to time, but the newer thread will probably be filled with more discussions due to the foot traffic.

Here is the link to the thread. Happy discussing!

https://forum.lowyat.net/index.php?act=ST&f...0#entry71918589

This post has been edited by wild_card_my: Dec 11 2014, 10:36 AM

Can you break down the debt? Please tell me the outstanding amount of the credit cards as well as the ORIGINAL LOAN AMOUNT of your debts

Also, what is your GROSS INCOME before deducting statutory deductions?

Is this going to be your 1st, 2nd, or 3rd property and beyond?


Noted, my number is plastered all over my posts. Hoping to serve you, and serving you well. You could withdraw the application (I can help you draft the letter, I made the before) and start afresh too. Your call.

Hello,

1. Can you give me the ORIGINAL LOAN AMOUNT for all your loans, including the 2 houses, personal loan, and hire-purchase (if any)?

2. So you are planning to use the EPF account 2 to settle the loan for the apartment?

3. Can you also settle the RM15k credit card debt? This will help a lot since 5% of RM15k = RM750 monthly commitment. This is how banks calculated for your monthly commitments for the credit card (5% of outstanding) which is A LOT

4. Any received bonus or dividend in the past 12 months? GIve me the gross figures before deducting statutory deductions (EPF, SOCSO, PCB)

Once you can get back to me with the numbers I can give you a more accurate calculation

Hi,

can you share with me the ORIGINAL LOAN AMOUNT for the house and car loans for these 2 applicants?

Thanks

1. As far as the banks are concerned, as long as the loan is still on-going, the full installments would be considered as part of your commitment, the current outstanding amount has no effect on your installments, as such my calculations for your commitments will take these facts into account.

2. Noted, so could you settled this 15k in credit card outstanding using your own cash? If you could, this would significantly reduce your monthly (calculated by the bank) commitments, and increase your borrowing power

3. If you think the maximum loan figures are too small, I would suggest that you settle one of the 2 outstanding loans that you have using the EPF, and pay off the credit card outstanding balance. In addition, if you settle one of the loan accounts, you would be able to apply for a loan for the 3rd house at 90% margin of finance (MOF) as opposed to 70%

I am calculating for you twice, one as is, and another if you could do as I suggested. And most importantly, everything is subject to approval by the credit controllers.

As is:


If you do as suggested:


This post has been edited by wild_card_my: Dec 14 2014, 04:57 PM

Acceptable, -2.50% is pretty much the best for the general public, -2.45% is OKAY. Is MRTA forced upon you or could you opt out? You may consider MLTA. Even if they force you to take MRTA, maybe you could ask if it can be reduced to the minimum allowed: usually about 5 years. Only do this if you would consider getting MLTA instead of MRTA


Yes, if the developer has gone bankrupt while the property is still under the MASTER DEVELOPER TITLE (hasn't been transferred to individual/strata title), then the banks would be less keen, or outright impossible, to finance the property on your buyer's behalf.

However, I can arrange a bank to help your prospective buyer. If you decide to sell, and have found a buyer, you can ask that buyer to call me so I can help him with the loan application.

Yeah, in a way the interests will not be calculated using BLR anymore. No one knows what the future beholds, since they havent announced their new rates yet. Those who signed their loan agreements using the old system will maintain using the BLR which will run concurrently along with this new interest rate system. For some banks, the deadline for the submission of new applications to use the old BLR system has already ended, newer submission would be using the new system

of course not! if it has already been transfered to individual/strata, then it the developer has no bearing in the transaction anymore!

Noted. Let me know if you need quotations for the MLTA.

Can you explain why the client cannot ask for a quotation? They have every right to know the kind of contracts they are going to get into. Financial planners in Malaysia need to be more transparent about how they conduct their businesses.

Oh yes, like I said, it is important for financial consultants in Malaysia to be open, honest, and transparent about their products. The quotations for example, take only 30 seconds to make as long as you have all the necessary details.

As long as the developer or that particular project is not known for horrible workmanship, properties with individual/strata titles built by developers that are gone can easily be financed by the five banks that I represent too. It's a general problem face by all banks across the country, that is the risk associated with accepting collateral that is under a Master title belonging to a company that has gone down under.

Only 1 bank that I know of could do such transaction: CIMB

Those looking for a good CIMB banker to finance such properties can ask for it here; I have a network of CIMB bankers just for such cases

This post has been edited by wild_card_my: Dec 16 2014, 11:33 PM

Should be around this much, for some banks the OT can be included, but to be safe I suggest that for the purpose of calculating your borrowing power, that we do not include it. Do note that this is subject to approval by the credit controller so try not to borrow very close to your maximum borrowing limit.

Noted. Let me help with the application if you need to find a broker who can handle multiple banks. My services are free, I get my commissions from the banks.

To be honest, no one knows yet what the base rate is going to be. Will the effective interest rate offered by the banks remain at similar levels as it is today? I think so, but I am just speculating. The BR is probably going to be lower tha BLR, but the banks will offer it in the form of BR + xx%, and in the end, the effective interest rate would be around 4.4-4.8% anyway, just like it is today.

Again, that's just my speculation, best that we simply wait and see. People still need loans for their big ticket purchases regardless.

Depends on the banks, sometimes they would give your employee a call during an application and/or after you accepted the LO, or even during the processing of the loan until the drawdown. It would be best if you could change your job after the drawdown, as the bank cannot hold you liable for you changing the jobs, they can only hold you liable for lying in the application form. But no one knows if an opportunity would present itself in the near future.

This is off topic but I'll post it here anyway: From my experience, it would be best too apply for the loan before you change your jobs because your pay on your payslips would be pro-rated, usually reduced, which is a sign of someone changing a job.

You don't need to tell anyone that you are going to change a job, it's your prerogative, but any signs of job changing may trigger a clause in the LO and loan agreement (set by the bank). In addition, I know those who successfully applied for a mortgage even after 1 month's worth of their full salary accompanied with the LO for the job.

If you accept the LO, they will keep the documents for future uses like evidence in court in the case of mortgage default.

If you reject the LO, or the LO is expired, or your loan application is rejected, they will stamp those documents as void and it cannot be used for any other purpose anymore.

1. Most of the term loans now are flexi or semi-flixi, as such you are able to to do extra payments into the loans to reduce payable interest.

2. HSBC does have that ZEC package, but the interest is charged at BLR - 2.1% (and limited to loan amount of between RM300k to 600k if I am not mistaken), compared to up to BLR -2.5% in the market for the same loan amount. If I am wrong, others can correct me. I cannot speak for them, but I have spoken to my HSBC baker friends and this is what I got from them.

If your legal, stamp duty, and valuation (LVS) fees amounts to only about 2% of your loan amount, you can cover that "free ZEC" in 4 to 6 years by signing up with other banks; and then beyond those 4 to 6 years, your interest rates would be higher with HSBC compared to the other banks. The calculation is simple. interest is charged on a daily-basis, but it is calculated as per annumn. Here is a simple calculation which can be further refined if I have the time, the calculation is not ENTIRELY accurate because I do not take into account of the financing of the LVS as part of the total outstanding as well as the reducing balance of the outstanding as you pay your installments.



There is no free lunch in this world, HSBC package is good for those who are planning to dispose the property within less than 5 years of purchase, but if you stay with them longer than 5 or 6 years, you would be paying more interest to them due to the higher interest rates compared to what their competitors are offering. I don't mean to put down any banking products, and I apologize if there are any mistakes in describing the product, but as a holistic financial planner with a keen interest in mortgages, it is my duty to spell it out clearly since the bankers may not be entirely objective about their own products.

This post has been edited by wild_card_my: Dec 26 2014, 01:26 PM

As a mortgage broker, I have Maybank, OCBC, Ambank, HLBB and Alliance as our panel.

Neither the banks nor I charge any kinds of processing fees.