1. This is gross or net? If net you are doing OK, but if gross you are better off with banks that can give maximum 60% debt-service ratio (which is the max BNM allowed for this salary range). Some banks give max of 40% or wont do the financing at all (AlRajhi for example) due to the salary being below guideline

2. Okay high annual bonus is a big plus. With this bonus figure, you can ignore point (1). You can go with any banks that would consider 80% of your bonus as income provided that you have documents to backup the bonus (2 year EA and bonus slip)

3. No record. Erm.. I successfully got 90% margin of financing for clients who has no CCRIS record. I used graduate schemes, need to back this up with transcript and degree

4. 570k? Do able. How old are you?

High bonus employees are still ok if they can prove long term viability of the bonuses. I have done employees who has received big bonuses before (SP Setia), granted it is great GLC.

6 to 18 months are considerably high but some companies purposely give low salary but high bonueses (Singapore Airlines steward) and banks will consider that case by case, epecially if you ahve supporting documents like I mentioned:

1. EA from the same company for multiple years to reveal consistency of bonuses
2. Savings

edit: To whom it may concern, for the purpose of sharing information on the ground, it is ok to reveal what I do for a living. You can report my posts as many times as you want, but experience on actual application process and results are important. Without experience, the advisers are prone to make simple mistakes like you have done before, for example, not knowing that you can withdraw EPF for the purpose of paying the 10% deposit when purchasing a house. This is a simple method that everyone in the industry (mortgage and real-estate) would know which you apparently did not know perhaps due to inexperience. So I am sharing my experience as a person who is currently working in the industry.

This post has been edited by wild_card_my: Sep 28 2018, 03:06 PM

Financing rate depends on the loan amount. Granted, a 70% margin is low-risk to the bank due the customer having to pay 30% for the property, the rate is heavily attached to the loan amount.

Do you have any other commitments? If no, here it is. Also assuming that you are younger than 35 years old. Most banks will consider 80% of your monthly average for the variable as well as rental income; while some banks will only consider 50%. In the calculation below I am using 80%

You could do that, there are a few ways about it. Legally speaking, as long as you are upfront about it, then no issues. But if you go through the "loan compression" route, that is already in "grey to black" area already. Either way, as long as you do not have more than 1 residential property loan under your name, your next application(s) will be given 90% maximum margin of financing (MOF)

Just to be clear, can you share these details? Easier for me to get it done right at once:

Personal
Name (or nickname):
Age:

Income (RM/month)
Gross:
Nett (after deducting EPF, PCB, SOCSO):
Variable income (OT, commissions, if any):
Rental:
Investment (ASB, Tabung Haji, Unit Trusts, FD):
Bonus 2017:
Bonus 2016:

Commitments (RM/month)
Mortgage:
Hire purchase:
Credit card outstanding:
ASB loan:
Personal loans:
PTPTN:

1. No problem being a pure commission earner as long as you have documents and the banks can verify your employer (registered business, no hits in their CTOS/RAMCI report)

2. No probelm with a '1' that doesn't not continue for months... it's just a small mistake and happens to many people. It would be a problem if it was a "1 1 1 1 1 1 1" that means you purposely delay your repayment.

Alaiumussalam wbt.

You are referring to day trading right? Which CDS account are you using? Do you have a registered business?

Banks include bonus in a few ways:

From 0% to 80% of the bonus earned, monthly averaged (divide that by 12 months)

This entirely depends on the documents, but banks understand that some employees are given lower basic salary but with higher bonuses, for example, those working for Singapore Airlines.

My job is not to judge the applicants' ability to repay the loan, but to calculate the expected maximum loan amount

Good afternoon,

1. your rate is way too high, at 7.4%, even without the need to cash-out, I may suggest to refinance just to save on interest. We can go through the numbers as long as you are comfortable sharing some personal info out in the open, I can show how much you are "losing" by paying that much amount of interest.

In general, every 0.1% difference between your rate and the best rate is RM100 lost a year. Which, I may add, why I think a fixed rate of 4.99% is a horrible deal because you are losing money hand-over-fist every single day that you are liable to pay that high interest rate.

2. What is the market value of the house? In general, you can get a maximum refinancing amount of 90% of the MV. So if your house value is RM200k, you can get 90% of that, which is RM180k. Deduct the balance of RM45k, and you will end up with RM135k. Of course, you can apply for less amount of cash-out, since it will increase your monthly commitment

Hi insurance agent,

thanks for answering on my behalf

This post has been edited by wild_card_my: Oct 10 2018, 06:25 PM

Ah I see that Loanstreet is also starting to market themselves here.

1. Yes. Provided that you bank allows you to do "capital pre-payment" on the property
2. yes, capital prepayment can be withdrawn, especially since if it is a full-flexi. Again, depends on the loan type you signed. all these should be in the LO
3. Yes, full installment starts after VP
4. Depend on your loan type, if it is semi-flexi you need to inform them what the money is for. if it is full-flexi, well, depending on how they set up the full-flexi, you can either put it in the CA/SA-linked-mortgage account (CIMB) or pay into the OD account (Maybank)

Can't just assume. Got to ask. I am familiar with CIMB capital pre-payment, becaue it has 3 distinct options

1. pay installment
2. capital prepayment
3. advanced payment

Advanced payment does not reduce capital, thus doesn't save you interest. So you ahve to be careful with these.

You can go with ANY banks

1. problem may arise due to the no commitment status. Issues that I foresee is that the rates may be higher than nomal, and the margin of financing (MOF) may be lower thus you would have to pay more. Actually, local banks are better for this purpose. RHB and CIMB would be ok choices as per my experiences

2. In today's market the market value (MV) set by the banks' panel valuers tend to be higher than the actual selling price. In any case, if the MV cannot match the RM230k, it means it may be over-priced anyway.

The FD can be used as proof of savings, which is important when the bank's credit side is making the decision. Approval may be easy to get, but the margin and rates are the concerns.

MV is usually done by the banker/broker that you engage with to process the financing. Each bank has its own panel of valuers (who sometimes are panel for multiple banks too). Get your broker/banker to do this for you. My post is usually reported by an insurance agent for discussing my job and business. But you know what I do based on my signature.

On a side note, you are free to engage any banker/broker, not necessarily the ones forced upon you by the real estate agent (they usually share commissions/referrals)

awesome. even better since you can nego prices directly.

Just engage a banker/mortgage-broker to proceed with the valuation. It is common courtesy to stick with him throughout the loan process, but NOT legally binding to do so.

In general, both Islamic financing and Conventional loans are similar in terms of interest calculation. Most differences are in the contract, which are just a way to make the transaction/contract syariah compliant

Some benefits:

1. interest rate capping of about 10-12% depending on the bank
2. Some do not have default rate
3. Most do not have any lock-in period or penalty

Cons:

1. more documentations, can be costly by RM300 per documents, extra 1-3 documents

1. With lower margins you would need to fork out more deposit. Not that many banks would finance someone with zero credit history at the normal 90% margin, so it is important to build some

2. Credit card is a good option, although banks would be wary about giving credit cards to someone without any records in the first place anyway. Catch 22 much? Hahaha. A car hire-purchase is definitely a good option if you really need one to begin with

3. Another option for Bumiputras or those who are eligible for them would be ASB-financing. HP and ASB-financing are really easy to open even without credit history because these are loans without any collateral

Best of luck

Hi

1. You can check the lock-in period stated in the LO. It should be a few pages in. the fact of the matter is, you can still "refinance" or make a settlement of the loan before the lock-in period ends, but you would incur some penalty

2. Depending on the banks and the refinancing loan amount, the rates may differ.

3. Whether or not you should refinance should be based on your objectives:

a. are you refinancing to save interest rates? What would your installment be after the refinancing? Would you be extending your tenure?

b. are you refinancing to unlock the value of the house to use the cash-out for further investments?

In general, clients would refinance to unlock the value of the house, because they need the money now to be reinvested in golden opportunities. this could be in the form of a business expansion, ASB-financing, etc. Others do it to renovate the house (which is OK because renovation increases the value of the house, to certain extent)