Hi all,

First, let me first say that I am not able to find a suitable forum category to post this topic. Please move it to the appropriate place if there is one.

I have recently booked a new double storey link house in Putra Heights costing around 350k. Currently, there are 2 banks which are willing to offer me the 90% loan which are RHB and Public Bank. The S&P will be under 2 names. Mine and my girlfriend (which we will marry soon). The problem is that RHB does not offer a withdraw facility if I make extra repayments. Public Bank on the other hand, does offer such facility but requires both me and my gf name on the loan agreement as well. This complicates situation as she is still a student graduating in 1 month, and having a 2k housing loan on her name would probably she would never be able to buy a car until she earns 4-5k.

Since my repayment period is quite long (35 years RHB and 40 years PB), able to make extra payments can reduce the loan duration as both these loans are daily rest (like most of the others). However, not having a withdraw facility means that I will not be able to withdraw the extra money should an emergency happen.

RHB is the panel bank for my housing project whereas Public Bank is not. I'm not too sure what are the negative implications of having a non-panel bank as my end financier. The developer advise me to get a panel bank but I'm open to the bank that can give me the best offer.

Anyone have advise which bank I should go for? What would you do if you were in my shoes? Thanks

Actually the longer repayment period is a form of safety net for me. That's why I'm trying to opt for loans > 30 years if possible. This brings my monthly installment to around 1.8-1.9k, which I feel is still manageble for me. This will also soon be my only commitment (tho it is a high commitment) as my car will be finish paying dy. Also it will probably easier to approve also, coz the monthly installment is lower.

Of course the safety net by taking longer loan tenure may be much more costlier, but my preception is once can earn more money, can pay what is comfortable then. Maybe 1 month can pay 3-4k also. I don't want to get lower margin of financing as I want to use some money for furnishing the new house as this will cost a lot. I'm also paying for the legal fees instead as I find that having the bank cover your legal fees is not such a good deal after all. I don't want to over commit now, so if banks can give me 90% MOF, I'll take it. The mortgage officer did ask about other debts/loans as well and that's where I find different banks have different policies.

Some count the total value of all your credit card limits combined.
Some just count the outstanding balance of your CC bill every month.
Some count your average monthly spending on CC.
Some don't count it at all, only if you are blacklisted or not.
Some ask for the monthly car loan installment.
Some ask for the outstanding car loan balance.
Some ask for when the repayment finishes.
All ask if got good payment records.

To be frank, I have lots of credit cards, but most are dormant. I don't hav e any outstanding balances every month. My payment record is pretty good on my car loan, except I was late for the first payment only. I'm getting around 5.5k/month so 1/3 of it is around 1.8k which is what I get for loans above 30 years. Some banks count 2/5 (40%) instead. But some banks hor.. they add with the car installment as well, so if my car I pay RM 500 / month, I have to earn 6k to qualify. Some don't count like that. I also confused how all the banks count. Different bank count different things different way.

BTW, the titles are individual. What do you mean by charged titles? What are chargor banks? Are they the same as panel banks? I don't think those big foreign banks (Citibank, HSBC, Standard Chartered) is suitable for me coz I am small fry business to them. If I have so much money.. I no need to apply loan loh. Smaller local banks want my business more.. so I go to them. Actually if I want to, I can go for 85% MOF, but now I rather spend that 5% on furnishing my house.

You guys all so expert leh. Some loan officer I talk to quite blur like that.. make me feel not very confident of them. I guess flexibility and safety nets do have their trade offs as well. Thanks for your great comments!

As long as the BLR doesn't jump a lot in the next 5 years, he's in good shape, since he's thinking about making additional payments (he was asking for withdrawal facilities after all). After the minimum holding period, he can always refinance, even if the BLR shoots up.

well sorry for hitchhiking , what is the car interest loan now. heard its from 3.90 % and now is 4.10 %

your gf is still young and i advised you to buy your own property first . dont you think its still early for her to get properties . how old is she?

Hi everyone,

Just want to set the record straight on a few things first

1. My gf is in her mid 20s, so it may be young or it may b old to some people. I only said she was still studying but not her age. FYI, she's 25 and I'm 26.
2. I didn't say she's not paying for anything. More than half the downpayment is coming from her, so it's still fair that her name is on the S&P even if it is not on the loan agreement
3. I'm sorry I have to disagree about getting the house another time because 10% of a 350k house is 35k, and I don't intend to burn that money now.

I'm drawing up a move in budget soon and will try my best to stick with it

Here's my current status with regards to the loan application:

RHB -> APPROVED!!!
Public Bank -> Processing
UOB -> Just applied

RHB is almost perfect for me except of the no withdrawal thingy. I'm almost certainly cancelling Public Bank because of the 2 name thingy now. Initially I applied for Public Bank as well because of fear that my RHB loan could not get approved for whatever reason.

However, a few hours after I applied for the UOB loan, the RHB mortgage girl call me and say my loan is approved! YAY!

RHB is giving me this offer:
1st year: 0%
2nd year: BLR -1.25%
Thereafter: BLR + 0.1%

Loan tenure 35 years @ RM 1921/month. Daily rest, no withdraw facility. RHB is the panel bank for my housing project

UOB is offering me this:
1st year: BLR - 4.25%
2nd-5th: BLR -1%
Thereafter: BLR + 0%

Loan tenure 30 years @ RM 1961 / month. Daily rest. Withdrawal facility available. Non-panel bank.

I guess I prefer the lowest 1st year rate (RHB). Anyways I think I have to forget bout withdraw facility and just save seperately for rainy days. If I don't have to pay anything for first year, I could have an extra 10k or so for furnishing and moving in costs. Actually I aim to complete my loan at around 24 years (if everything goes well).

Cheers!

My parents paid around 167k for a house around 15 years ago. The market value of the same house is currently around 330k. Anyway, I heard some rumours that price of house is increasing by 10% after middle of this year due to higher raw material costs. Not too sure how true is this information. Also heard BLR is going up soon but it should not affect me until the second year.

Good point. But what you have not factored in is the hidden profits. If his parents did not buy a house, where would they be living then....somewhere rented I suppose. Then they would have to pay rent. If you take into account the rental saved, what would be the returns then? There is nothing more comfortable than living in your own home. Renovation or not, that is besides the point. You can never renovate if you live in a rented place!
minolta