If your loan is old one... I think high chance the rate is high.. so try to get current new rate ... which probably can be lower ... since you got intention to sell your current house... means you can afford 30% down payment ... there are banks offering 4.4% now for loan financing 70% and below ... 4.4% imho is quite low and cheap ...

So between S&P and loan... for your case... you can go ahead with S&P first if you need to lock down the purchase... since you got your 1st house loan with cash you can withdraw ... worst case if your new loan approved for a small amount ... you can just withdraw the money from 1st house loan to cover the purchase or top up for 2nd loan as required ...

Just giving some inputs on other options since you almost settle your 1st loan ... got a few options to consider... if you really need to lock down your purchase by signing the S&P... go ahead and sign first ...

Good luck ...

This post has been edited by kevyeoh: Sep 24 2018, 08:20 PM

Just apply for a new loan for the new house. The issues with refinancing is the 10-year limit when calculating your commitment for the cash-out. You may end up having to apply for a "purchase" mortgage after all if the cash-out portion approvedis not enough

You would need some documents including the ones below. But most importantly is that you have the booking form and SPA/title (if already issued) for you to start with the application. Once the loan is approved then you can start with the legal work (SPA) and eventually LA

Hi Bro, i have a house in Kuching and would like to check if you are able to advise the market value
the reason is i am intending to cash out to pay for 30% down payment of the house i am intending to buy.

Kuching all the way across the narrow seas? Unfortunately I do not do Sabah-Sarawak. Don't have valuer contact there as well. I advice approaching a Kuching-based banker

It is alright.
Thanks bro.

Want to share my boss managed to buy her first house using epf money. Just need to pay 1% booking deposit. Other payment pay after epf withdrawal. So those who dont have enough cash on hand but enough money inside epf can do like this.

Maybe not the best option.

It is a fine solution. Just need to make sure that all parties agree to it (vendor/developer as well as buyer). I spoke about it here: https://forum.lowyat.net/index.php?showtopi...&#entry85106040

Good info. Yes, my boss bought a subsale unit. Thank you.

This post has been edited by AmeiN: Sep 25 2018, 03:38 PM

Sorry I don't do property in east malaysia. Best to sort out with the local banker there

You can do so provided the seller allow her to pay the remaining balance using EPF money which means the seller will not get the remaining 9% upon signing of the SPA.

Less secure for the selller in this case, but if they're willing to take the risk then it's fine

Insurance agent,

It is not less secure, as the S&P still have to be signed and stamped before the EPF withdrawal can be made. If the buyer backs away from the sale they would still be liable to pay the 10% to the seller as part of the non-refundable deposit.

I have covered this before when you mistook the EPF withdrawal process as per below:



This post has been edited by wild_card_my: Sep 25 2018, 05:32 PM

Yes, why not secure while already clearly stated inside S&P

basically the person can still abort the SPA and you can only hold unto 1% deposit. Buyer won't feel any burden financially to abort the purchase anytime compared to 10% downpayment paid.

Insurance agent,

Because the S&P is stamped, it can still be brought to court for the seller to claim the remaining 9%. 1% of 500k is still 5k and since the purchaser has to pay the legal fees and loan cancellation penalty if he has already signed those, it is as good as secured. Plus from my experience, for subsales the vendors would not stoop to something as low as 1%, only developers would. The normal figures are 3-5%.

Now if we were to follow your logic, in normal transactions (without using EPF as the downpayment) the purchasers would feel less secured then, as the sellers are holding their 10% (after S&P signed) of which in the event of an abortion of the transaction the purchaser too has a right to the 10% return of the deposit.

A year ago you are not even aware of EPF withdrawal to pay part of the 10% deposit, now you are the expert



This post has been edited by wild_card_my: Sep 25 2018, 06:12 PM

Thanks for the advice but i am not living in Kuching currently.

1. As for the stamp duty exemption, the answer that I got from the lawyers are:

Since your name has already been recorded to have a property (documents are sent to LHDN for stamping), you would not be eligible for the stamp duty exemption

2. As for the MRTA, banks are not allowed to force their customers to take MRTA when applying for a mortgage, but the banks have the right to increase the interest rates of the loan that they are offering you. Not all banks do this though, for example, HLBB does not increase their 4.55% rate during this promotion period.

Are you based in Klang Valley then? And making a purchase for properties in Kuching?

This post has been edited by wild_card_my: Sep 25 2018, 06:49 PM

thanks for your view

My wife is now considering to rebuild her house which she lost during a fire 3 years ago. She just completed her land ownership transfer last year and also started a you char kuey stall last year as well.

Reason to rebuild:
1. Landed property (nearer to her stall, convenient for parents & grandparents.)
2. Need space to place cooking equipment & dough mixer (Large)
3. Ideal location middle of Petaling Jaya.

Our concern is :

1. Rebuild house is treated as 1st house purchase or refinance?
2. Business only been around for 1 year & 5 mths, just done her first year business income tax.
3. How difficult is it to get a loan to rebuild a house?

1. You can apply for land + construction loan. But the documents are quite strict. You would need to have an approved plan ready in most cases. The financing will cover both the financing of the land and construction of the building.

2. 1 year tax is OK, but wished the business (with SSM right?) has been around for longer than 2 years

3. As per 1. It can be difficult in the form of the documents required:

a. approved plan by majlis and/or architech's board (Depending on the bank)
b. contractor details
c. land title (i assume she has her name on the title)

This post has been edited by Wolffer: Sep 26 2018, 05:40 PM

1. Since you've done the transfer of the land, you're basically just looking for funding to build a house on top of the land that is already owned by your wife. In this case, it's not a purchase of house, more of a refinancing and part financing to build a house on top of it.

You'll need to refinance the land to the bank in this case.

2. Business is too young, would advise to apply atleast with 2 years establishment. Some banks will need atleast 3 years establishment before they will accept your application.

3. Basically it's the same with buying a property, as long as your income is able to take up the monthly installment, the bank will be willing to give the loan for you to build the house.

This post has been edited by lifebalance: Sep 26 2018, 05:40 PM