Lol... I'm still a budak baru belajar... but it's not hard to understand.

Ownership is joint but what about loan? Regardless existing loan is joint or single, you can refinance the loan without affecting the ownership, hence RPGT is a non-issue.

Yes it does.

Very very likely it will.

It shall follow the same direction of OPR which in this case a decrease.

The direction likely will be in line but the effect (eg reduction in BR) may not be immediate.

Lol. Mind to share how many years back was the decrease and have the base rate implemented then?

Came out in the news few hours ago CIMB will cut ates by 20 bps effective 22/7. So far Maybank, BSN and Ambank have made rate cut announcements (not sure the quantum and effective date of the rate cut by BSN though)

This post has been edited by Jasoncat: Jul 17 2016, 07:42 PM

I'm choking reading this...

I don't know what level is the BNM officer that you dealt with but if that was what transpired, then I would say it is kind of unrealistic and partially correct at best. Under the old pricing regime of BLR, the banks have more flexibility in transferring the additional cost to the borrowers due to increase in cost of funds and risk premiums. During the GFC time, the market at once was short of USD and as a result the banks whacked in a heavy liquidity risk premium in addition to the already high dollar COF (and no so-called supplementary LO for clients' acceptance) - this is more applicable to corporate / commercial lending though and in non MYR. Nevertheless this is a typical example of what can happen during financial market disruption. Under the BR framework, since the pricing components are clearly defined and the pricimg methodology is more properly governed now, the banks somehow lose a certain degree in pricing flexibility. In the event of market disruption, it definitely will impact the market funding conditions and under that circumstances the BR is expected to move accordingly. So, the transmission of risks arising from adverse market movements is still largely through the BR instead of the spread.

Btw, if you have dealt with BNM officers (especially those not high ranking officers) regular enough, you will notice that in many instances they are only willing to give verbal reply (instead of documented ones) and frequently the replies are somewhat in grey area or inconsistent.

BNM as the regulator their advice will be deemed as the guides / directives to follow. Because of this reason, in most of the time the BNM officers have been very careful in responding to the financial institutions. If they have wrongly interpreted the policy or misguided the FI and that are communicated in a documented channel, one can imagine the responsibility that they should hold for the repercussions that may arise. Basically, BNM sets the policies guiding the FIs and so long as the FIs act reasonably and prudent within the guidelines they are pretty much on the safe sides.

RM10k as threshold for high saving is unacceptable more so this is not lending to priority sector. I wonder which bank officer will ask for the physical cert of degree or PhD in loan application.

One has to apply common sense and give appropriate advice based on the circumstances. If the applicant is working in a MNC with RM10k pay and is not applying for low cost housing - RM10k savings and degree / PhD cert virtually render no help in this situation. Credit underwriting shouldn't be stereotype and is not one size fits all kind of situation.

Boss, if you apply from the banks where you had your house loan or hire purchase loan before, they should be able to see your repayment records in the past. Some bankers just too lazy to do their due diligence.

+1

I personally don't buy the whole idea of having a credit card to build credit record kind of story. There are many factors to consider. If says the borrower has no credit history (or there was but since fully settled) reflected in the CCRIS but it is a high income earner and the property purchased and amount to be financed is a relatively small amount to its net income, it doesn't need to worry too much in getting a loan. Also, CCRIS only tells part of the story if a credit officer is experienced or skillful enough to know about it.

It does. The high income earners and high networth clients are the highly sought after client group particularly in this increasingly competitive market (coupled with cautious sentiment mood) and the race for courting more deposits and fee income. The banks' scorecards if so rigid which do not take this into account is time to be revised or even phased out. Anyway, always there is overriding allowed.

The shares may be used as the supporting evidence of your networth if further backup to strengthen the case is required.

Hehe... Dealing with banks is always a situation of who needs who more. If one is confident enough of its credit standing and it is the client segment that the banks look for then it has the upper hand in dealing with them. Under this circumstance, just furnish the doc on need to know basis is adequate.

You still can buy the property that is charged in favour of the bank. Your loan proceeds / own funds will be used to redeem the property by paying off the seller's bank which is the chargee. And btw, this is common particularly in the subsale market.

This post has been edited by Jasoncat: Aug 17 2016, 08:02 AM