Insurance agent,

not the following month la. July through December are a few months apart. The differences of RM300 in interest (profit) payable only took place only after further advanced payments throughout the months...

yes, the interest rates are calculated on a daily rest. more days in the month = higher payable interests in total

Recommend to hold off from applying to too many. HLBB and CIMB are kind to business owners such as yourself. Consider getting PBB in the loop as well. But 3 should be good, if any of these 3 don't make it, unlikely other banks will too.

Insurance agent,

Is there a reason as to why the limit is set to "up to 5 banks"? Why not up to 10 banks? Even better, why bother with a limit, why not just submit the application to all 26 commercial banks in Malaysia?

I am not saying the three (3) is the right number, or that five (5)is the wrong number; but in the end of the day, you really only need one bank to sign the letter offer with. If the client needs to apply to as many as five banks, what is the point that they are employing your services? Where is the value-added service that you are giving them, as an insurance-cum-mortgage-agent?

I sincerely believe that there is enough overlap between banks' specialties in terms of the applicants' financial, employment, property, financing purposes and other criteria as well as situations, in that simultaneous submissions to three banks is more than enough to get a good feedback on the success rate of the loan application.

I would say we need to work smarter, not harder: the bankers that you partner up with will appreciate it. You can't throw cases at them, expect them to process the cases, without any form of submission strategy.

A good mortgage broker (and I am not saying that I am) would be able to look at the applicant's CCRIS (which we can print on behalf of the clients, with their permissions), run some DSR calculations based on each banks' commitment and income recognition, and predict the success rate of the application. And for those with low rates of success (burst DSR based on the low DSR limit for particular banks, like MBB and PBB for example), to forgo or allow the client to submit on their own.

Whatever you do, I think it is most efficient if we study the clients' situation before shotgunning the submissions to as many as five banks. Not only you are wasting the bankers' time, you are also not being efficient since you would have to process each applications.

You are most welcome. Applying for a mortgage and getting them successfully approved is a combination of arts and science. Sure, it may seem like you are increasing your chance of approval by submitting to as many banks as you could, but the "art" potion, which is also related to the "human" portion will be severely affected. Bankers don't like to handle cases where they are 3rd, 4th, 5th choices.

And they can see in your CCRIS the submissions that you have made to banks other than their own.

There are requirements for business to have been registered for a few yeas, in general, 2 years, before the banks can start considering your income from your businesses. Those are the SOP and guidelines, although from my experience this can be mitigated - for example, you were working as a dentist for 8 years and decided to open and run your own practice 1.5 years ago. I wont be ale to comment too much about your application because I am not the one handling it but you get the idea.

There are generally no issues with the financing required, as Malaysian banks are always open to finance the needs of expats in Malaysia, especially at your income levels. But the margin will be limited to 70% to 80% (for MM2H program recipient) of the property price. There are other ways to get around this, that is through adding your spouse's name into the loan agreement as a joint-applicant. If the spouse is a Malaysian, the margin can be increased back to the normal 90%.

As for the ownership, the issues that you may be facing would be the requirements of the properties that you are planning to buy that are based on:

1. minimum/floor price limit, meaning a foreigner is not allowed to purchase properties under a certain levels based on the area/zone/state

2. type of land - low/medium cost are not allowed to be owned by foreigners

3. Add "Malay reserve land" and "Bumiputera" properties into that list

In general, the minimum price of property for foreign ownership set by the government is RM1,000,000, but this can be reduced if you apply and qualify for Malaysia as a Second Home Program (MM2H) - this program has other tax benefits too, which I will not cover in this comment


Figure 1. Table showing the minimum price requirement for foreign-ownership of properties in Malaysia. Source: loanstreet

Business-owners are the least favorable out of all the valid loan applicants. the best being government workers, glcs, mncs, sdn bhd employees, insurance agents (Commission earners), etc.

In general, from what I have seen, higher rates than the competition. But rates are only final when application is approved and rates appealed. Not much needs to speculate. I can only speak from experience as part of my job.

Alliance has a niche though, that is to do consolidation. For outright house purchase, they understand their own limits (in terms of rates), of which other premier banks can be much more competitive.

Just like CIMB, their DSR are on the higher side across all income-levels.

It will be noted. It is an item of concern when credit card utilization is high; in most banks this will be noted and it will affect your application - from full rejection to higher interest rates due to the risks you carry.

There are a few ways around this:-

a. consolidate this to a PL
b. balance transfer to another card

But I have to note that your high utilization of clean loans (loans without collateral) will still be noted, but it is better to have spread the utilization across multiple accounts than concentrated into one.

Essential a BL is a PL. but in general, yes, it would help by reducing the single credit card usage percentage. 85% is one bank's usage limit before they flag you as riskier. Approvals still subject to credit controllers approval though. Nothing is guaranteed.

Mods, in this post I am sharing my professional experience in a case study; if the trigger happy insurance agent reports it for "promoting business", I hope you can just ignore it. I am just trying to contribute here

Very hard to say. this is credit controllers' purview, I dare not sail in their territories and give you the wrong advice. My principle in financial planning is always to manage the cash-flow

If the BL helps you manage your cash-flow (by having to pay less CC commitment each month), the better.

Incidentally, the banks and credit controllers agree with me. If you have the means to manage (lower) your negative cash flow, they are more inclined to lend you money. I have helped people consolidate their clean loans to other clean loans (PL with lower rates) as well as a mortgage (which has even lower rates than CC and PL); these actions have helped them lower their monthly commitment and they managed to get


For example, this client has a 50k PL with BIMB, its commitment is RM580/m. I consolidated the PL into a top-up mortgage, only had to pay the outstanding of just RM28k, for a commitment of RM140/m

(before) Mortgage Approval :
Property : RM 656 000
Legal fee : -

(after) Mortgage Approval :
Property : RM 725 365
Legal fee : RM13 710

Here is an example of a recent confirmed/approved offer from the said bank



This post has been edited by wild_card_my: May 1 2019, 10:26 PM

sure.

1. business registeration date
2. monthly deposit into the company bank account in the past 6 months?
3. monthly banking commitments under your name?
4. Did you declare and pay your taxes (amount paid is irrelevant)

As long as the company has been registered for at least years, with a good income in the past 6 months, you are good to go.

EF stands for End-Financing, that is the financing that is extended by the bank to the final buyer of the projects - the public customers like you. Waiting for EF means the bank has yet to get the paperwork for the EF done yet. It will get through eventually and then the banker can proceed with the processing of the loan. Right now the banker is processing and giving an approval based on your current credit score and DSR. No actual offer has been extended yet

What is the best rate that the banker has offered? From recent experiences, 4.4% is the lowest in the market from an approved-offer (not provisional or expected, but a true and confirmed offer)

Yes you could.

For all instances, the bank will give loans based the lowest of these:

1. valuation as per done verbally by the banks' panel of valuers
2. the booking and/or SPA and/or transfer prices

So in your case, the bank will give 90% of the transfer price. If you put the transfer price as RM110k for example, the loan given would be RM99k.

Since this is a transfer between related parties, the banks financing your loan would probably ask for loan statement of the parent just to see if this is not a "refinancing" of sorts to clear off bad debts

In addition, may I suggest that you buy the house at the market value anyway? This way "your mom" could get to capitalize and borrow more from the bank. Mortgages has the cheapest financing rate a normal citizen, if you miss the opportunity and apply for a refinancing at a later date, you would have to pay these again:

1. legal ees
2. stamp duty on the legal fees
3. valuation

Yes you could. For some banks, for subsales, the loan offer validity is up to 1 year.

There is a table for that.

1st 100k 1%
100k to 500k 2%
500k and above 3%

You add them up. For exampel 600k property, the fee are 1k + 8k + 3k = 12k

Best I got is 4.15% for my clients, but there were some special conditions, inclusive the changes in BR. The next best thing is 4.25% p.a.

One of the better ones, loan size is rather large at 700k+ and there were some trickery involved which I won't share here (trade secret). But this doesn't apply to everyone.

Insurance agent,

It depends though. Not everyone can get this rate. Have you got this rate recently?