Dear forumers,
First off kudos to mods and participants in this thread, quality discussions all around, many thanks for imparting such valuable knowledge.
I would like to ask the maximum loan amount that can be offered by banks, given the following details:
Joint loan (Individuals A & B, first home)
Target loan amount: RM1,130,000
Individual A
Age: 22
Occupation: Entrepreneur, no company account, transactions are in personal savings account
Summary of savings account I (Apr - Jun): Total credit RM214,000; total debit RM214,800; balance RM7,500
Summary of savings account I (Jul - Sep): Total credit RM414,000; total debit RM370,000; balance RM51,000
Summary of savings account II (Jul): Total credit RM68,300; total debit RM39,400; balance RM44,000
Summary of savings account II (Aug): Total credit RM142,800; total debit RM98,500; balance RM88,300
Summary of savings account II (Sep): Total credit RM183,100; total debit RM81,200; balance RM190,200
Existing debt: Car loan, paid 1st month installment of RM567
Individual B
Age: 26
Occupation: Fixed employment as office executive (3 yrs)
Monthly salary: RM4,700, with annual benefits of RM5,000
Bonus 2014: RM23,100 (5.3 months based on 2014 salary of RM4,300)
Summary of savings account I (Apr - Jun): Total credit RM55,000; total debit RM53,300; balance RM8,000
Summary of savings account I (Jul - Sep): Total credit RM106,400; total debit RM95,100; balance RM19,400
Existing debt: Car loan, paid 1st month installment of RM1,600
Specific questions, aside from the maximum loanable amount are:
1. If an entrepreneur does not set up a company bank account, and biz transactions take place in personal savings account, do banks assume a certain percentage of the monthly balance as income? What is the acceptable percentage?
2. What are banks' expectation from applicants in order to offer loan amount of 1.13 mil?
Many thanks indeed for your expert inputs. The goal here, if possible, is to improve/ improvise documents such that individuals A&B meet the criteria for a loan of 1.13 mil.
Kindly reply or PM if any mortgage consultants think the loan amount is viable?
1. This is a good chance to let everyone know that typically banks prefer salaried customers through and through, although some banks are quite open with business owners, albeit with a few terms and conditions (such as the reduction of calculated income, to 80% of the total income, to 50%, to not acceptable at all for some banks without proper documentas )
2. To accurately calculate the net income for Individual A, may I request past 6 months statement? You can always crop-off the names and other personal details, but leave the numbers behind.
1. No, they do not, at least none that I know off. The banks that I do will calculate the net income of the applicant based on the bank statement, some of them based on the 10% of the transaction done. The calculation method used for each bank is different though, so you may come up with different net income between the banks.
2. Typically, for a 35 year tenure (you both qualify for this tenure due to your age, which is up to 35 years of until age of 65 OR 70 -depending on the bank), at a rate of 4.55%, the bank would expect the applicant to pay back RM5388.71/month.
With a maximum DSR of 85% for a number of banks (could be higher or lower depending on the bank), and with ZERO commitments, a minimum of RM6340/month of net income.
However, since you have your own share of commitments, it would be better if I can only calculate the maximum loan amount for applicant B, since applicant A's income calculation needs further documents - which you can send to my email below.
Oct 14 2015, 07:13 AM
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but anyway no black & white so far 
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