It is in fact, on a good side. Is this rate before or after appeal?
Well talk to them, ask them about the terms and conditions of top ups. What is the expected rate, the tenure, the lock in period, and the costs associated with topping up.

If you are satisfied with the terms, then go ahead. Otherwise, I can help with application to other banks.

To all aspiring borrowers.

Please remember, its not how much you can borrow that is important.

What is more important is how much you can afford to pay monthly, your free cash flows.

Even if salary is 20k, if too much fixed cost that cannot be reduced, also no point. If can only afford say another 3k, then your instalment you can afford is 3k and loan is about RM600K for 30 year tenure although max loan is closer to RM1.3 mln

Apologies, not pouring water on anyone but borrower must always be mindful of cashflow vs affordability.

Thank you for this. I do plan to get this next property under joint ownership. 
Thank you so much for the details. To further elaborate on your assumptions:

1) Correct, fixed income only, not including claims and bonuses

2) Loan is personal, not housing. Four year commitment, can be completed sooner if possible.

3) Condo loan is still being paid off, and the loan for the condo is not under my name so I have 0 housing loans at the moment. The condo is jointly owned by me and my parent.

4) I do plan to apply for joint loan with my partner.

Her details are as below:

Age: 33
Fixed annual income: RM54k
Credit card and personal loan commitment: RM1000 monthly

Appreciate if you could advise further on this.

Thank you again   

Is after appeal. Earlier they give 4.55%.

Thanks 

Good to know. I will assume that you can finish paying off the PL to reduce your commitments then.

Can you elaborate on her CC OUTSTANDING and the monthly payment for her other loans (which type of loans?)

Yep will definitely be aiming to finish the PL within 2 years. 

My partner's CC monthly is RM800, that is a balance transfer. PL is RM500 monthly.

Wait, the balance transfer for the CC and overall oustanding, how much is it ya?

The exact amount outstanding she can't recall but she has 0 outstanding for the cards, just the balance transfer to clear. For the balance transfer, 8 months to go. Loan, another 15 months to go.

Hope this helps 

Appreciate all the advice you've given thus far 

Noted. So I will follow what she is paying per month as her CC balance transfer repayment then. Keep in mind that when you joint loan, your are combinging both income levels and current commitments. Technically speaking, you can both apply for RM950k when you combine the application. But remember, everything is subject to approval by the respective bank's credit controller.

1. Refinancing of the house for cash out portion

I would recommend refinancing the FULLY paid off property because you are not bound to the rule where the refinancing portion is limited to just 10 years of repayment or DSR calculation. If you refinance a house that already has a bank loan on it:

a. The refinancing of the outstanding portion's installment will be calculated  at a maximum of 35 years.
b. However, the cash out portion's commitment when calculating your Debt-service ratio (DSR) will be calculated at a maximum of 10 years. This will effect the maximum amount of loan that you would be getting.

Keep note however that banks like OCBC, Alliance, and HongLeong allow the repayment tenure for the cash-out portion to the maximum of 35 years, but you need to pass the DSR test as mentioned above first.

This is why I recommend refinancing the fully paid off house. As such, when you refinance that house, do it at full 90% and use the cash to to pay off the higher deposit, and lower loan amount for the new properties you want to acquire. With this method, you simply borrowing using one property to buy another. It's beneficial since you get to have cash in hand which you are free to use however you see fit.

2. Loan tenure

Now, I would still recommend applying for the highest loan tenure due to the flexibility of banks nowadays with advance payments that will offset the loan outstanding amount. As such, if you sign for 35 years tenure and repay your loan as if you had signed for 25 years tenure, then you will end up paying the same amount as someone who had signed for 25 years tenure anyway - your advantage would be that you have the flexibility of reverting to a lower installment if you need to (during financial emergencies)

3. Loan eligibility

Here is my calculation of your loan eligibility based on 85% DSR. Keep note that banks have different DSRs, some lower, other higher than 85%.

I'm 38 yo this year, I Don't think I'm eligible to 35 years loan tenure.

Good day all,

I would like to to ask for advice on loan eligibility.

My details:

Age: 38
Gross annual income: SGD36K (About RM97K)
Credit card oustanding: RM50K (payment about RM3.5K/monthly)

Property details:

Type: Condo
Purchase price: RM300,000
I only intend to borrow only RM200,000
Currently the condo is on construction, I already pay almost RM100K.

This will be my first housing loan. I intend to take the longest loan period.

Would like to know if there is any other alternative.

Good day all,

I would like to to ask for advice on loan eligibility.

My details:

Age: 38
Gross annual income: SGD36K (About RM97K)
Credit card oustanding: RM50K (payment about RM3.5K/monthly)

Property details:

Type: Condo
Purchase price: RM300,000
I only intend to borrow only RM200,000
Currently the condo is on construction, I already pay almost RM100K.

This will be my first housing loan. I intend to take the longest loan period.

Would like to know if there is any other alternative.

Is the credit card taken from a Malaysian or Singaporean bank? If it is with a SG bank, we can exclude it from the calculation, hence allowing you to get a better loan.

Alternatives to the plan, I suggest getting as much loan as possible at 90% or so and use the rebate (that you may be getting from the developer) to offset your CC balance that may incur a higher interest that the housing loan.

But all said and done, here is the calculation for a 32-year loan tenure:

Ok no problem it's within dsr guideline but you means this property is on construction? And previously you're dealing with developer for monthly installment?

Nope, actually I have sign s&p for the condo. Its currently already on third payment. All 3 payment is paid for in cash together with my parent help.

Hi, I just locked in for a 999k property. Property in under HDA and I hope to get a 90% loan because I am not cash rich. I am buying with my friends.

This is my second property and his first.

My first house loan was for 500k and now I am paying around 2500 every month. However, I have rented the property for 2500 every month with tenancy agreement. My fren's is serving his car at 950 per month.

We are young working adult. Our EA's filing for year 2014 was about 60k respectively. However, our gross income in year 2014 was 3,500 a month each, and our bonus made up the difference.

This year, our gross salary is 4,500 and 4,400 respectively. It is common that our industry gives around 4 months bonus.

So, please pardon my ignorance, my question are as follow:-

1. How could we substantiate our credit worthiness in the best manner possible? What are the relevant documents required?
2. Are we eligible to a 900k loan?

Many thanks.

There's few problem here! First this prop is without applying mortgage loan in you buying last time and suddenly borrow loan from bank, bank will doubt there's financial problem with you that's why you unable to pay the balance 200k like what you paid for your previous third party, they might reject, and if they willing to finance also have to make sure this property is ready construct. Under construction seriously abit hard

Hi, I just locked in for a 999k property. Property in under HDA and I hope to get a 90% loan because I am not cash rich. I am buying with my friends.

This is my second property and his first.

My first house loan was for 500k and now I am paying around 2500 every month. However, I have rented the property for 2500 every month with tenancy agreement. My fren's is serving his car at 950 per month.

We are young working adult. Our EA's filing for year 2014 was about 60k respectively. However, our gross income in year 2014 was 3,500 a month each, and our bonus made up the difference.

This year, our gross salary is 4,500 and 4,400 respectively. It is common that our industry gives around 4 months bonus.

So, please pardon my ignorance, my question are as follow:-

1. How could we substantiate our credit worthiness in the best manner possible? What are the relevant documents required?
2. Are we eligible to a 900k loan?

Many thanks.

This is actually no different from buying a unit that is almost or already completed by a developer. As long as the project is under the banks' particular panel, the property itself would not be an issue. As for the ability of the clients to repay the loans... well I can imagine that someone who has already paid a big portion of the house would have little problem with their cash flow.

The banks' primary concern when it comes to customers' credit has always been prominently based on their repayment records. As long as the CCRIS and CTOS are clean of any records there shouldn't be any problem.

The customer is also not asking for 90% loan, as such the bank gets to hold onto a property with less than 90% disbursed loan - a low risk business for the bank.

I know because I have helped a number of clients doing this previously, the only problem is when the clients themselves have horrible credit repayment record as well as high levels of commitment.