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

Nothing you need to comply if you're non Muslim to take up an Islamic loan

In term of difference, not much compared to non Islamic loan beside the ceiling rate offered by the Islamic loan facility.

Some terms you may not understand if you're a non Muslim signing for an Islamic loan offer because of the Islamic term, if you're not sure about that, it's best to take up a conventional loan.

Hi, i am looking for home loan, prefer flexi loan, for a subsale 300k apartment in mainland penang. Bankers please kindly pm me for details, thank you.

May I know why margin and rates will be concern?

So how do we build up our profile to get good rates and margin? Try to apply more credit card first? Or get a car loan first?

Trying to understand as this may be a chicken and egg thing ... maybe I am wrong but hope to understand a bit better here... cause I thought if no commitment and can show good salary history ...this is very good already right?

You’ll still need to build some credit profile like holding on to a credit card at least to show some track record, I know it sounds stupid to do so and you’ll prefer to be debt free and cash rich but that’s how the system is designed.

You can apply for a free for life card with no annual fee imposed

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 guys,

Can check if the existing mortgage already out of lock-in from bank, possible to seek other banks for better interest rate?

Worth to do so?

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)

depends on how much interest rate you're paying at the moment to know whether it's worth moving it out or not

Noted on the above comments.
I think mine was lowest in the market so far..4.45% from Maybank.
Pure refinancing I’m looking now...

Nah, no point to refinance to reduce the interest rate further, market is going about 4.45% at the moment, unless your purpose is to cash out the amount.

how the whole process should be ? now the situation is the owner is selling for 230K and i agreed to it. Now I'm waiting for the bank to evaluate the house and i will pay the balance. Meanwhile, the owner of the house asking me to pay a 10% deposit. Should i hire a lawyer to do all the dealing ?

you only pay the 10% upon signing of the SPA, you'll definitely need a lawyer

Dont pay to the owner. Pay to your lawyer who will be the stakeholder. You need a lawyer (SPA lawyer) for the transaction anyway. The owner can agree to it or have his own lawyer that will liase with your lawyer.

You can pay booking fees of 3%, but this is also to be paid to the lawyer.

Hi, I want to ask about the below situation

I have a house under my name (after my father transfer to me) and my uncle A on a land owned by my father, uncle A and neighbour (Uncle B). i.e. two houses on one land

now i thinking to borrow home loan to buy the share of uncle A but uncle B doesn't want to sign the documents and submit the land title because he afraid that in case of me defaulting the payment it could affect his house.

So i wonder is there any loan that doesn't required to submit the land title other than personal loan?

no there is no other way, either you submit as a co-borrower or settled it in cash

The key to mortgage is that the bank would be given the power of attorney over the property. That's why the rates are very low.

thanks for the info =)

oh now i know. thanks for the info =)

Let's say I have zero FD but substantial stock holdings (six figures) that are owned in cash (not margin) and in my own name. Will they consider this as a plus point as well?

Definitely, but I have to warn you neither bankers nor brokers really know how the credit calculation is done - it is very subjective and kept in secret from us. We can speak based on experience, but nothing definitive as the bank's credit department can change their SOP without informing us. They will let us know about the DSR table, the recognizable income, etc. but things like determining the credit score is off our table.