Well usually I would ask the client if they want to proceed with a lwoered margin, but i guess your banker went over your head and requested the credit controllers to proceed anyway... usually people cant afford the increased deposit, so there is no point in forcing the loan approval without the client's considerations.

You can still get the booking fees.. taking booking fees isnt legal anyways, they can deduct a few hundreds as admin fees, but they cant swallow it whole.. even after the loan is approved.

Which bank was this by the way? How many banks have you applied? What is your income and commitment status? Are you still interested in further applications if you can get 90% margin?

I am familiar with them. In general the process of application is not any different than normal applciations... you can expect 100% margin though. How can I help you?

The one offered by MBB is so much better, due to the rate. And MRTA is a perfect protection tool for most people.

If you are NOT SATISFIED with the MRTA coverage you can always top up using MLTA. that is one of the many options

Whenever BNM changes the overnight-Policy-Rate, most banks will follow suit and change their own BR accordingly, as similar as what BNM changed (the banks have no obligation to, though). MBB has been very disciplined and QUICK in following the changes made by BNM. So it doesn't matter if you take MBB and AMB, you will not know exactly how the respective banks will change their BR in the next 35 years

Again, you can always top up your protection with MLTA if the bank doesnt want to cover your insurance in full

Much better, yes.

This post has been edited by wild_card_my: Jun 30 2017, 10:59 PM

As mentioned before, when BNM changes the OPR, most of the banks in Malaysia would change accordingly. For example, when ORP is changed by negative 0.2%, most of the banks that I recalled reduced their BR by 0.2% too... with Maybank ebing the first to change it (they changed it the day after)..

So in either cases, your effective interest rates would also change accordingly... in the case above, if your EIR was 4.25%, it would change to 4.05%, and if your EIR was 4.45%, the EIR would change to 4.25%

In both cases, where OPR is increased or reduced, your EIR would still be lower with MBB...

but remember, this is a 35 year long commitment, anything can change.. the banks are NOT obligated to change their BR to follow the changes to the OPR

Hello,

Since this would be your 3rd housing loan, the margin will be capped at 70% as per the BNM directive.

Your options to get 90% loan for the upcoming property:

1. Drop your name from the loan to leave your wife as the sole applicant, but retain your name in the SPA if you want (joint ownership). This will be a 3rd party loan, most banks can do it. However it depends on your wife's income vs. commitment (DSR) to afford her the full 90% loan

2. Settle off one of your residential property loan, to make this upcoming loan as only your 2nd loan and not the 3rd.

By the way, the rule only affects residential property loan, if the loan that you are taking up or the loans that you took up are of commercial property types, then no problems, they don't count as any of the 1st or 2nd property loans that will affect your margin of finance.

who is the chargor, an individual or a company?

Zero Moving Cost means the bank will absorb the fees associated with taking up a loan:

1. Loan Agreement
2. Stamp duty on the agreement above
3. Valuation

Most be banks will only finance the fees, but you would still end up paying for it. The current lowest rate for a ZMC is offered by CIMB

For commercial units, and charged to an individual, the rate starts at 4.45% from RHB, 4.5% from HLBB, but as a whole, depends on the loan amount.

Their offers are the same point-to-point?

Id take Maybank due to its bigger coverage, and its reliability is following the OPR changes. Recently Ive managed to get 4.35% for my clients from MBB for loans of RM180k though, not sure why you are getting a somewhat worse deal.

The legal fees are acceptable.

No I am not, I am a mortgage broker, I can handle applications to most of the banks in Malaysia

For maybank they will look into the applicants profile, house type and location, at best, 4.25% and I have done it multiple times a full-time mortgage broker (I don't mix insurance, unit trust, etc. into my business, asmuch as others)

MRTA is sufficent for most cases, the coverage is reducing because the premium you pay is on the cheaper side.

1. Insurance agents will promote their MLTA because they want to increase their production, but the cost is always higher with MLTA vs MRTA. Whichever you would like to choose is up to you.

2. MRTA will always be able to cover the outstanding amount provided that you take the MRTA at full tenure and full amount. MRTA can be adjusted at will.

3. Savings facility is insurance agent's cookies for would be purchasers, but it is not guaranteed. It is also stupid to give the agents 172% of the annual premium in 6 years, when you can use the difference between the MLTA premium vs. the MRTA costs (payable to tbe bank) and invest it in a unit trust yourself with much lower sales costs.

In MLTA, the insurance company will invest your money into unit trust funds too, so why go about it the long way? Insurance agents will most likely not talk about this, but as a proper financial planner, I do not need to cover up the facts to make a sale.

If you do not believe me, you can ask for an MLTA quotation and I will show how much you can save by NOT taking the MLTA, but by taking MRTA plus investing on your own.

1. Yes, MRTA with full tenure and full amount would be sufficient coverage. The issue would be the MRTA is a single-premium so you would have to pay that upfront, the bank may not have allocated enough for your MRTA funds, which means you would have to pay out of pocket. This is acceptable because MLTA would have you pay out of your pocket for years to come (making it more expensive, and damaging your cash flow)

2. MLTA offered by the many insurance agents would invest your money in unit trust. Why dont you just invest that money in unit trust yourself? Why need to buy insurance and investment product together? Because insurance agents are telling you that it is the way, but they are wrong. In the long run, you would be better off investing on your own so that they don't get a cut

3. Yeap, just tell the banker that you would like to go all out, and have them fund the full 35 years tenure and full loan amount for the MRTA

4. You can always take an MLTA later, there is not time limit for you to take any insurance, except for when you already have a preexisting condition. As it is, for this property, you should get enough coverage

None that I know of.

But if you want to compare it to MLTA, you can have MLTA which has not Critical Illness coverage as well, and the MRTA would still end up being cheaper than the MLTA. If you add Critical Illness into the MLTA, the differences that you need to pay would be very high. The agent will be happy, but you would end up paying for it for the next 35 years or so.

I am not saying that insurances are not important, they are. But you can plan your life insurances without even considering MLTA. MLTA is just insurance agents' term for their own product when comparing to the banks' MRTA

yes, death due to 36 CI will be covered as long as the person is dead. The only exclusion would be suicide, 1 year from the commencement date. Please as for a copy of the quotation from the banker.

1. Yes you could do it. That's what the mortgage brokers do, we submit your documents to multiple banks (based on the documents at hand) and the results would be that you would receive a few offers. You can also do this by engaging multiple bankers but I imagine that would be a little more laborious to do

2. No impact, each loan application will appear in the CCRIS, and all the bankers can see each application, but this is understandable since you are shopping for rates. On the other hand, if you apply to too many banks, the bankers will be disinterested in handling your case because they doubt they would be able to secure you even if they get your application approved

3. If your loan gets rejected, it will be notified in the CCRIS too... but most mortgage handler would let you know if the application can be successful or not with the documents on hand, if it is unlikely to be successful, they will tell you that they wont submit it all the way to the credit controllers, meaning you wont have "loan rejected" mark on your ccris.

4. Yes, you could withdraw the application at anytime!

The higher the loan amount, the lower the rates are. The interest you will get will be based on your credit rating, the loan amount, as well as the bank's board rate.

In general, without any propmotions, the best rate you can get now is 4.25%

The lowest should be 4.25% from MBB, CIMB? About 4.35% based on my recent cases for my clients but it depends on a lot of issues

1. If you are non-business man, it would be wiser to go for semi-flexi, since you do not need to pay any maintenance fees on them.
2. MBB would be a good choice for you.
3. Usually the conventional loans are locking you at 3 to 5 years. Some Islamic loans do not have any lock in periods.


Focus on the BLR - 2%. I do not know what your BLR is now (different banks have different BLR, although many of them keep it the same across the board), but the OPR is now at 3.0%, thus making your effective rate at 3.5%. So focus on paying off the BLR -2% loan

All mortgages are generally flexi now. Full flexi has some extra services that you may (or may not) need, but comes with a monthly maintenance fees. So I would suggest to save the money and just opt for semi-flexi

You should look into the effectie rate. BR + [spread] = effective rates. Obviously you would want to get the lowest interest rates

http://www.srp.com.my/en/criteria.html



Ive done plenty of 100% loan scheme, however, they can be difficult especially due to this: Repayment of total financing obligation must not be more than 60% of the net monthly income or maximum financing limit of the participating bank


Typically you can go as high as 85% DSR but if you apply for 100% margin of financing (MOF), the max DSR would go down to 60%. So this affects your eligibility.

Typically most banks do not reduce the installment even if you dump the money into the loan account.

The 100k will reduce the principal amount that you would have borrowed from the bank, and reduce the interest payable each month, on the interest chargable on that RM100k.

Refinancing is good and bad, it depends on what you would need it for. I have created a topic on refinancing: https://forum.lowyat.net/index.php?showtopic=4271313&hl=

Need MRTA for this. Without MRTA it increases by 0.1-0.2%

You are most welcome. Let me know if you have futher question, I've been doing mortgage for 7 years, these questions are dime a dozen

It depends. If you are talking to an insurance agent promoting insurance, chances are he will sing songs about MLTA.

What matters is your needs and eligibility. You need to be fully protected but at a good cost. So what do you need and what are you trying to protect.

Next, compare the prices between the MRTA and MLTA, and the benefits both provide. I can talk about great lengths on mortgage insurances.

If you really need that house, you can always do a joint loan. At RM2500, you can generally get a loan of about RM550,000 for this loan amount, in general at RM640k, your installment will be RM2900.

So based on your own calculation, you may get the loan, but you may not be able to afford paying for it.

These are my thoughts. What do you think?

at 20 years, RM1.2m is RM7400/m. Based on your salary alone it seems that you can afford it. But we do not know as of yet your current commitments both in Malaysia and Singapore.

As it is, you can look at about 4.22-4.25% interest rates.