Thanks for the nama jalan, will use this info as the general area to propose. Stay tuned

I have done checking with MBB and HLBB, no go. They wouldn't do it, at least not from my side.

Now checking with a few others.

Which 5 banks? Do you mind sharing specifically?

This is an open discussion forum. So while you have the rights to not share, we have the rights to probe as well. As it is, it seems suspicious that you started to reply with "5 banks" right after I said that 2 banks (by name) are not financing the area. I cannot prove this, but I can theorize that you never did find out which banks that do not finance the area. You just saw my reply for the 2 banks by name, and decided to one-up me and just claimed that "5 banks" do not finance the area - but you do not want to mention their names because:

a. you didn't actually find out the names of the banks
b. you don't want to be called out if I took the names of the 5 banks and actually go to the credit controller executive friends of mine and actually ask them for verification. You know I am capable of that

So for the sake of transparency, I do hope that you would reveal the names of the 5 banks so I can do verification on my own. As it is, I have confirmed HLBB and MBB as to not be interested in financing that property in that address vicinity. Hope you can do the same. I am not accusing you of lying, but I can definitely accuse you of not being transparent and not having a discussion in good-faith.

Congratulations. Just asking, was the law firm your own choice or was the firm recommended by the real estate agent?

As mentioned earlier, MBB and HLBB wont do.

CIMB is now added to the list. 5KM distance is like the bare minimum these banks would need finance, while this one is clearly less than 1KM apart.

Suggest start looking for other properties. The prices are cheap there because the owners find it difficult to sell due to the banks issues



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

No it is not too good to be true. It is normal rate, with MRTA likely compulsory. Also depending on the credit profile of the borrower.

btw, rates from all these loan comparison sites are just the board rates, the actual rates can usually be higher, and at times, after appeals, can be lower than the advertised rate

The rates you can expect for this loan amount is around 4.5% to 4.65%, depending on the banks and your credit profile. Banks that give the best rates are MBB and PBB but the best rates are usually reserved for the customers with the best profile

I recommend semi flexi facility as opposed to full-flexi facility as I have discussed above

Semi Flexi
- flexi facility is available, you can deposit more than your installment into the loan account and save interests due to lowered capital outstanding
- does not have any month fees
- withdrawal takes longer time as you need to inform the bank before the money is deposited into a savings account you opened with the bank
- recommended for salary earners as their income are usually fixed with extra income coming in as annual or bi-annually bonuses

Full Flexi
- flexi facility is available, you can deposit more than your installment into the loan account and save interests due to lowered capital outstanding
- comes with monthly fees, usually RM10-RM20/m, those banks that claim to be full-flexi but does not have any monthly fees are more akin to semi-flexi upon further checking
- you are usually required to open a CA/SA (current/savings account) with them to link with the mortgage account
- any money deposited into the account will be used to reduce the loans outstanding, thus reducing payable interest
- recommended only for those who run a business that has daily revenues that can be deposited into the CA/SA-linked mortgage accounte business owner can use that money again a few days or weeks later for his business.

Has flexi facility, you can pay in advance and reduce the

In short, using a flexi-facility will cost you about RM10-20 a month, money that you could use for other investments. Not to mention that the cost of this RM10 will have to be balanced with putting around RM2700 in the savings account at all times. See example below:



This post has been edited by wild_card_my: Jul 10 2018, 04:20 PM

A lot of banks provide it. But for most of them, if the OD amount is above 200k to 250k, there will be a maintenance fee of 1%, which is chargeable even if you do not utilize the OD. The OD rate is about 7 to 8% now

As it is though, without proof of income, it can be very difficult to get a mortgage, be it term or OD. Do you have other sources of income?

The problem is the income and proof of income. Without any payslips and tallying bank statement, I can't proof that you have the income pay the installment (housing loan) or the interests (OD)

yes, even for purcahses of property, you are not allowed to withdraw from account 2 for land purchases

OD at below the OD maintenance threshold would be a good idea for you. You do not have to pay the installment, but have an OD facility at the ready to utilize when you need it. I suggest that once you do get a job, to start with the OD application anyway - sediakan payung sebelum hujan, so to speak

Who knows this may be your cross roads. Start with the business, do it well, document your income well, and maybe the next time we speak, you would be asking for an RM2m loan for a property purchase.

Register your enterprise, makes sure all payments are received through the enterprise bank account, if received as cash, to bank in on the same day you get the money. Declare your taxes so you dont get hounded by LHDN.

Best of luck brother.

No you cannot. When it comes to financing for a purchase property, the maximum margin is applied to whichever is lower:

1. Market value
2. Sales price as per displayed on the SPA or Proclamation of Sale

The options that you have:

1. Get 90% MOF for the purchase, that is RM270k, and purchase the property. And then refinance it (another cost for the loan agreement, stamp duty, and valuation fees) at 90% of the MV. RM270k will be paid to your current bank, and the remaining will be your "cash-out"

2. Purchase the property in cash (if possible) by paying RM300k in lump-sum, then refinance it at 90% of the MV. This is more difficult as you would need to cough up the cash, however, you would not have to waste time and money to pay the moving costs.

MRTA is cheaper in general, but it is attached to the loan which you will have to surrender if you settle the loan (cannot be carried over to a new mortgage in the future). Paid in lump-sum in advance, it has cash value that can be redeemed when the policy is sold back to the insurance company. Reducing balance, which is part of the reason why it is somewhat cheaper than MLTA

MLTA is a life insurance that is attached to you, as a person, that can be earmarked for the settlement of your mortgage in the event of your demise. It is payable on the monthly basis, but would end up a little more expensive than the monthly loan payment for the MRTA mentioned above

For your first condo, if you do not plan to sell it off at all in the future, not you need to refinance it for cash, MRTA may be more suitable. If you think it will be upgraded, or you may need to refinance it for cash-out, MLTA may be more suitable

Insurance agents may be more inclined to recommend you to take MLTA so he/she can cross-sell his/her product, as it is, it is best that you balance all these factors and decide for yourself.

Insurance agent,

As expected, you would recommend MLTA there and then. The proper way of conducting financial advising involves inquiring the client about his/her situation and future plans - which includes what he/she is going to do about the property, upgradability, refinancing possibility, holding period, residency, etc. It is also important to provide a lists of pros and cons to either plans, and allow the clients to decide on his own without a hard and fast recommendation, especially without any info from the clients' side.

That is the proper way of doing it, instead of recommending MLTA driven by the desire to earn your commissions without explaining why such recommendations are given. It is also important to mention any conflicts of interests when recommending one product over the other. Just my two cents.

This post has been edited by wild_card_my: Aug 3 2018, 12:19 AM

1. No, you cannot refinance a property that is still under-construction

2. I haven't come across any banks/cases where the refinancing was successful .

3. I believe that if you leave the bank and you fail to refinance, the rate will change back to normal commercial rate, as opposed to staff rate. Some banks force their employees to refinance though.

For completed unit, once you have received the keys and it has received Certificate of Completion and Compliance (CCC), you can refinance already.

issues that may stem that I foresee would be the "lock-in" periods, although I am not sure if it applies to you since you would be "forced" to refinance anyway. But for normal people, take note of the lock-in period, if you break this you would have to pay penalty of about 2-3% of the outstanding/loan-amount, depending on the banks (check your LO)

Best of luck

It depends. the banks' MRTA that you finance into the loan is absolute-assigned to the bank, and I haven't come across a bank that doesnt force-sell the policy.

You can get MRTA from the bank's sister company or outside from insurance providers through agents like lifebalance but these cannot be financed into the loan. MRTA is just a REDUCING TERM ASSURANCE

My beef with these insurance agents is that they never go through all these technical details about MLTA. It is as if MLTA is the golden-boy product. It has its purposes, but it is not a one-product fits all - but you wont hear that from MLTA peddlers since these insurance agents get their best commission from selling MLTA which is essentially a life insurance.

I recommend that you download this app to learn more. Or just google mortgage calculator, amortization:

https://play.google.com/store/apps/details?...cial.calculator

As far as I have come across for my clients, 4.47%, but that depends on the profile of the customer.

As I have mentioned before, I have never come across any bank-financed MRTA policy where the bank allows you to retain the MRTA. When you get the MRTA financed into the loan (never came across people who pays the bank's MRTA with their own pocket, they can get MRTA outside if they pay on their own), the MRTA policy is absolutely assigned to the bank

This means the bank OWNS the policy, they can do whatever they want with the policy - but they wont. The reason they do this is to stop the borrower from selling the policy back to the insurance company without fully settling the loan. The MRTA is an assurance that in the event of death/tpd of the borrower, the loan would not fall into non-performing-loan (NPL) status. Only in the event where the borrower makes the full settlement of the loan (selling the house, refinancing the loan, or paying it off ahead of schedule) does the MRTA policy gets force-sold back to the insurance company, and any cash-value available is paid back to the clients.

I have noticed that you have made plenty of mistakes in mortgages and always recommend MLTA over MRTA regardless of the situation (you never seem ask the borrower's situation). I understand that you are an insurance agent and selling insurance is one of your KPIs and contributes to your commission, but what you are doing is akin to miss-selling, and disgruntled public can report you not just to the mods, but to AIA/BNM as well and get you booted off the company.

This goes into the list of mistakes that you have made that I have compiled below. People should beware of you, and I will continue to call you out because your mistakes have dire repercussions to the customers.

Downplaying and misrepresenting MRTA and in turn recommending MLTA, akin to miss-selling his products

This post has been edited by wild_card_my: Aug 10 2018, 06:23 PM

Once you start miss-selling the other products, you crossed the line already. I pointed them out and I hope you would change the way you run your businesses. based on the list I made above, you have not changed a thing. All I can do is call you out, and point out the mistakes in your ways.

Sure

Details required for verbal valuation

1. Full address:
2. Property type:
3. Built-up area (sq.ft.):
4. Land area (sq.ft.):
5. Renovations/extensions:
6. Cost of renovations/extensions:
7. Expected market/price/asking price:

As you pay your installments your payable interest should be reduced, not increased