Not the thread, but it is interesting to discuss because flexi car loan would have similar interest calculation as a mortgage. The biggest Con for a flexi car loan would be the variable rate that may change oer the course of 9 years (is that hte max tenure?) which is not something car borrowers are accustomed about - most uses fixed HP

I assume it is based on BR, not BLR anymore for new reducing balance car loan applications.

How do you mean when you said consolidate home + car loan in the future?

As far as I was informed, no. But they have the rights to change the terms such as the rates and tenure if you choose not to take MRTA

Yes. MRTA does not have to follow the loan tenure and amount. It is highly customization

memekfalui, for example, like this. If you take a shorter tenure but do not pay extra to your bank to reduce your loan tenure, you will end up having no protection half-way

Of course, the alternative would be an MLTA, which is not absolute-assigned to the bank unlike MRTA. Choice is yours. These are long term contracts, don't make a misstep

This post has been edited by wild_card_my: Jul 6 2018, 10:49 PM

It has come to my attention that one of the brokers/bankers/insurance-agents here may be forcing the clients to take the MLTA when it comes to HLBB applications. This was brought to my attention by one of the people who view our topics here and have proceeded to apply for a loan from a service provider

I would like to make it clear that for the 4.4% (first 2 years) and 4.55% (remaining tenure) package offered by HLBB requires NO MRTA/MLTA. For this package, not taking any of the insurance policies would NOT increase the interest rates. Any attempt to force the client to take the insurance package, which so happened to be an MLTA package for that particular applicant, is wrong and the banker/broker should be reported to the bank for further actions.

The loan applicant brought this to my attention, so I thought that it would be wise to share this information. The suspect, as reported by the applicant who complained this issue to me is a huge proponent of MLTA packages for mortgages - which is fine, but please draw the line at the point where you DO NOT LIE to the client. I hope it is made clear to everyone that BANKs DO NOT force the applicant to take up any insurance policies, and the increment of the interest rates for not taking these policies, if any, is merely 0.1-0.2% and NOT 1% as the banker/broker/insurance-agents has claimed

If mods require proof of this complain, I would be happy to ask the loan applicant for his/her approval to share our conversation, or he/she can come forward and testify on his/her own

I have done a lot of foreign based applicants. They are not as straight forward as local-based purchasers. Information is key before I can assist you with the processes:

1. Is he/she a Malaysian?
2. Which country is he running his business in?
3. Is his business registered? Where, in Malaysia or overseas? I'm assuming that the Berhad company is registered in Malaysia
3b. How long has the business been running?
4. Does he pay tax on the business? Like a company tax? So he doesn't have Borang B, but does he get paid director's fees, ie. as an employee who runs the business?
4b. If he does get paid a salary, is the salary credited into a bank account?

I think I am getting the idea of the kinds of transaction this is going to be.

I will not divulge more unless required by the mods; but the post is more of a warning to would-be applicants against forced-selling by bankers/brokers/insurance-agents. A mortgage is a product, that's it. It doesn't have to be accompanied by FD, insurance, wasiat, etc, those can be cross-sold, but CANNOT be the preconditions to the acceptance of the mortgage (especially if the mortgage has already been approved without the abovementioned product being taken up by the applicant yet).

Anyone who got coerced to take cross-selling products as a condition to signing up with their mortgages can let me know, I can help you draft a complaint letter to BNM and let them take actions on such bankers/brokers/insurance-agents.

As per BNM's rules, they are not allowed to force you to take ANY products other than the mortgage itself. They can increase your rates if you do not take their MRTA/MLTA, but not all banks will do that. HLBB, for example, does not require you to do so and will not change the rates. While it is true that the banks may need to secure their position against NPL, there are a number of other way for them to avoid that:

1. making sure that the client is working for in a relevant field, with solid income vs commitment ratios
2. Doing proper background checks including the repayment schedules
3. Accepting the fact that the mortgages are backed by the asset itself
4. Considering the client's own personal life insurance situation

A few posts back I have posted a complaint made by a lurker here that his/her banker is forcing him/her to sign an MLTA worth RM1600 a month as a condition to accept the loan, after the fact that the loan has been approved. This is wrong and the applicant has cancelled the loan and reported this situation to the bank itself through their customer care.

Dear life insurance agent,

If you are referring to the minimum utilization rate of 70%, then you are completely wrong with the calculation, I have asked you multiple times to clarify which bank you were talking about on this scenario to check on the sources but you were silent, so I am going to just assume that you are looking at CIMB's Home Flexi product - if you actually meant a different product/bank, let me know, I will check on theirs and get back to you. I do not know where you learned your calculation, but I sure hope you would stop sharing things that you are not sure about. I know that I am not perfect, and there are many things that I do not know, but the difference between you and I is that when I do not know about something, or am not sure about it, I would be upfront about it, instead of commenting just for the sake of commenting - and when you do it, you give out the wrong information without being apologetic when called-out.

This could have been avoided if you had just looked at the source material, from which ever bank you are talking about.

1. The 70% rule was implemented so the customers would be discouraged to treat their full-flexi loan as if it was an overdraft account.

2. As we know, OD accounts have higher interest rates of >7% than term/flexi mortgages of 4.4-4.8%. So it would not be "fair" to the bank if the customers sign up for a HomeFlexi product and dump in cash amounting to 90% of the loan value into the account, to withdraw it as they please, as if it was an overdraft account

3. So to discourage their customers from doing this, they impose an "under-utilization" fee of RM40/m on top of the RM10/m flexi fee, for not fully utilizing the mortgage account, that is by putting too much money into the CA/SA account linked to the mortgage account, thus depriving the bank of their much profits (they are running a business, they have the right to earn)

4 The calculation for the utilization rate is spelled out by CIMB, it is a simple case of checking the sources before commenting, which you always fail to do. Here is the link to the site: https://www.cimbbank.com.my/en/personal/pro.../homeflexi.html

And here is the actual calcualtion



5. So following your wrong example above of RM100k loan... If you have more than 30% of the loan size (30% x 100k = RM30k) in the CA/SA account on average of the month, you would have triggered the under-utilization clause and would be charged with a FlexiCharge of RM40 for that particular month

6. Again, if you disagree with me, or if there really was a product that a customer would need to dump in MORE CASH into the CA/SA account than the MORTGAGE SIZE to reduce the loan outstanding, please let me know, I would love to learn of the product, and will in turn edit my post here to reflect your findings

You are most welcome!

Are you going to refute my arguments that I presented (with numbers, figures, and calculations) or are you just going to scream at me without any substance like you always do? You do know that you have a long list of factual mistakes that you never corrected or attempted to correct, thus giving me no option but to correct them for you, right?

All I want is so that people here would discuss mortgages processes, details, and the right information, and if they are wrong, to admit to their mistakes and learn from each other. You don't seem to want any of that.

Finally, I do not need to destroy your image as you put it so bluntly, you are doing a perfectly good job at that

Not familiar with document requirements for financing
Giving wrong information on minimum property price purchasable for foreingers
Shared wrong information on waiver of stamp duty
Not knowing that you can withdraw from EPF account 2 as part of the 10% deposit
Giving wrong advice on maximum withdrawal limit on EPF account
Lying to customer on refinancing his property to settle of AKPK0tagged account
Plagiarizing external articles and claiming it as his own
Not knowing the difference between Bumi-lot and leasehold
Not understanding the minimum utilization amount, and giving a completely wrong calculation

This post has been edited by wild_card_my: Jun 24 2018, 07:19 PM

Can you share more details?

What is the MV of the property? What is the current outstanding of the mortgage? What are the cash out amount from these 2 options?

How old is the applicant? I'm assuming 43 y.o?

I am not saying that you are wrong, but from my point of view, it shouldn't really matter what the other details are

Based on the case size of RM144k@4.5% p.a., the monthly commitment for a 10-year loan is RM1,492/m, which is much higher than the commitment of RM768/m for the 27-year loan.

So why is the 10-year tenure extended higher loan amount that the 27-year tenure? While the current income vs commitment matters when calculating the loan size, the earlier point that I mentioned (shorter tenure, higher commitment) should play a much bigger role when calculating the max loan amount - after all, the formula for DSR is only [commitment/income] x 100% - as simple as it gets, without involving net/gross income, etc.

Ok, perhaps the banks are looking at the client's type of job, occupation, and industry, like in 27 years his employment may not be valid anymore. But I still don't see why that would be the case

This post has been edited by wild_card_my: Jun 27 2018, 01:07 AM

The best offer that you are looking at for this loan amount is 4.47%, depending on your credit profile.

Is this subsale or underconstruction?

Possible.

1. This is called a 3rd party loan, where the names on the SPA/POS are different than the names on the loan, however, there must be something in common;
that is if the purchasers are AB, the loan applicants can be BC or B... but it cannot be C alone... OCBC used to allow this but not anymore.

2. likewise, in your case, the purchase is A, so the loan applicant must be A or AB or ABC, etc. As long as A is part of the application it is all good

This post has been edited by wild_card_my: Jun 29 2018, 09:06 PM

Good morning

1. You mean making multiple submission to different banks at the same time? Yes you could do that. Although I would discourage doing so as it is a shotgun method. All the banks you submit to will be able to see the submission that you have made to other banks through the CCRIS system - when they see this, they would be dissuaded from proceeding with the applicaiton. A smarter way is to assess your own credit profile, and apply for the mortgages to the banks accordingly, starting from one that perhaps give the best rates, followed by the ones that are likely to approve your application

2. Either way are fine - through agents, they would submit your cases to their own bankers that you may submit on your own anyways; through bankers, they may require you to take their own cross-selling products like Wasiat, FD, MRTA, etc.; through insurance agents, they are very likely to have you take their MLTA products and/or dissuade you from taking the bank's MRTA, through mortgage brokers, they are likely bonded to the banks that they can offer you and not the ones that they cannot.

The best way is to decide for yourself, after looking at the types of agents/brokers/insurance-agents that can help you with applying the mortgages

This post has been edited by wild_card_my: Jun 30 2018, 12:46 AM

No, the S&P/SPA amount is the selling price, less if "rebates" are given

The loan amount that you will get is usually max 90% or 70% of the SPA/S&P price, in some occasions you can even get 100% loan margin


Usually the higher loan amount will give better rates, if you lower it, the best case scenario is that nothing will happen, and worst case scenario would be that the rate will be increased (because you lowered the loan amount)

Yes, banks will blacklist areas that have made it into the news due to natural or man-made disasters like landslides, flooding, cracks, etc.

Exceptions can be made, but they are case-to-case basis, and depends on the exact location of the property. Where is this place (the address)?

Noted. Can you give me the full detail of the property, I will run a check with my handlers

1. Full address:
2. Property type:




This post has been edited by wild_card_my: Jul 3 2018, 05:22 PM