I suggest that to refinance a loan, do more calculation and ask yourself the following

1. What am I going to gain to save ?
2. If refinancing can allow me to draw out more money, how would I use the extra cash? Is this the best option for me with such interest rate?

Refinancing involve new agreement, stamp duty, valuation fee, etc (assuming there is no lock in period). Don't just do it to save RM50-60 a month. Even if the current rate is slightly higher, the better option is to find a way to pay off faster. Furthermore changing from semi flexi to full flexi is not really worth it in most case unless the rate is also quite different. For semi flexi, you still can withdraw money from the advance payment only not as flexible or easy like the way it is done with full flexi, some banks charges monthly fee on full flexi somemore

Is it still possible to get financing tenure of 40 years? Even after they came up with the max 35years ruling,there were banks that still offered 40.
But now most banks i asked say they cant give more than 35.

I doubt there are new mortgage loans that are still approved with tenure up to 40 years - this contravenes the BNM ruling.

for commercial Banks - its a ZERO chance of HL > 35-years. If any Commercial Banks is offering, their competitor will complain to BNM

MBSB has agreed to voluntarily comply with Responsible Financing Guidelines which limits to 35-yrs also

Shadow Banks like

Bank Rakyat
Agro Bank
BSN

its possible, but suppose it has to be done discreetly also

Hello all,

I would like to help my parents finance the construction of a bungalow (land is owned by them), and would like to ask a very specific question for my options regarding home loan: if I were to sign up for a mortgage with deduction through Biro Angkasa, how would the loan be settled should I decide to discontinue working with the government? And because it would be my first home loan, with a gross salary of 5k/month am I eligible for My First Home Buyer Scheme?

Thank you so much for whatever help you can suggest.

Hi guys,i dont know whether this is the right section or not to ask this question but i hope u guys can help me out. Btw sorry in advace for my bad english and noob question.

I wanna help my parent to make a loan. They got house and would like to pajak the house for the loan.they also thinking about refinance it.my question is:

1. What are the differences between pajak and refinance

2.which one better if my parent want a less hassle procedures

3. Which one u guys recommend?

I really noob at this.i dont know whether my question are legit or not.i didnt ask any bank yet as i want to bulk up a bit knowledge.I read that if refinance,no withdrawal.what does that mean?

Thank you in advance dear sifus

Any Public Banker here?

I'm considering to refinance my old shop to reduce the interest and at the same time to raise some cash. Currently my morrtgage loan is under PBB too so that will save me some legal fees.

Feel free to contact or whatapps me at 019-5516888.

Hmm, our resident Mortgage expert must be too busy. Early in the year, must chase for Budgets.

AFAIK, Biro Angkasa Loans are calculated on a straight line basis. Hence, although it may be stated as say 4.0%, the actual effective rate is much higher.

http://loanstreet.com.my/calculator/flat-t...calculator.html

Angkasa Loans are also capped at 10-years due to directive from BNM. Hence, the monthly repayment is also much higher.

As for how they will collect, you will need to check with Angkasa. In my opinion, everything should be clearly stated but the rates might be higher and/or you will have to immediately pay off the balance.

You can check with some Banks whether they provide Loans to build your own house. If the nornaal commercial Banks do not provide, you can check with the Shadow Banks like Bank Rakyat, BSN, Agro Bank, etc. They should provide such Housing Loans with longer repayment tenures.

Pajak means to ‘pledge’ or ‘charge’ your asset. So effectively, when you take a Housing Loan, you will have to pledge your House (and also you Life) as collateral to the Bank in order to obtain the Loan.

To the Bank, there is no difference cos if the House has been fully paid and you wish to “Refinance”, you will have to pledge the House as Collateral for the new Housing Loan.

Is the house in question fully paid?

Are your parents still working, what are their age

What is your age, are you working?

Hope Faiz wild_card_my comes back quickly, so many questions for him to answer

This post has been edited by cfa28: Jan 15 2015, 10:49 AM

Is the house in question fully paid?
- no but only 3 year of debt left

Are your parents still working, what are their age
-61 and my dad government retired with pension rm4k

What is your age, are you working?
-27 and no

btw is it possible to do the loan under other person name or even mine (and put guarantor)?

This post has been edited by lol~: Jan 15 2015, 01:57 PM

What is the best rate for a 400k loan now?

In addition, there are some financial benefits to refinancing. Refinancing can:

1. Lower your installments by extending the tenure (for better cash flow_
2. Consolidate all your bad loans with high interests (cc, pl) into a single loan account with lower interests due to the collateral
3. Shortening the tenure, by maintaining the installment but with lower effective interest rates compared to previous agreement


The difference in installment between 40 and 35 isnt that much anyway

1. I cannot speak too much about angkasa since I do not know their operations too well, but I have come across many clients with angkasa loans. Essentially they are simply collectors that you pay your installments to, the debt is still being held by the government.

2. Everything is so new, so I would like to apologize if there are any mistakes. As for your first home loan scheme, you qualify for the scheme since the new scheme "Skim Perumahan Belia" has increased the limits of the income to "pendapatan seisi rumah" of RM10,000. Which means even if you are the only person in the house, at RM5,000 you have not gone over the RM10,000 limits. Previously the limits were set at RM5000 for individuals and RM10,000 for seisi rumah.

It would have made things easier if your gross income were less than RM5000 a month though Ive done many SRP cases with OCBC before, you really do get 100% loans.

3. As for your parents' house, you can actually apply for a construction loan for the property. All you have to do is to pledge the land as collateral to the bank and they would be happy to give you the funds to construct the bungalow

Hello, sorry for the late replies.

1. As far as I understand, pajak is simply the practice of giving the collateral to a financier so they would give you loans. Essentially it makes the loan a secured loan, of which for all intents and purposes, the same thing to refinancing for your case. In refinancing, you would give the land/individual/strata title to the bank in return of a lump sum of MONEY usually at 90% of the valuation of the property.

2. Refinancing isn't that difficult at all. I do not know if there are other methods of "pajak" or "refinancing" that is other than what I am familiar with. Depending on your situation, property type, land type, etc, you will get your money in 1.5 to 3 months.

3. Refinance no withdrawal? In these modern times banks utilize a flexi system for all their mortgage accounts. You can pay your loans in advance and in the future you could withdraw the cash paid up for other uses.

Hi, thanks for remembering me. Im sorry for the hiatus but I am back. Very slowly though since my body isn't at its 100% yet. Currently prioritizing the work I piled while I was out cold - work at hand takes priority.

A couple of things that you can do:

1. Joint-loan with your parents and you as the main applicant. Both your income and commitments will be calculated, the tenure will be based on your age

2. You outright purchase the house, this is the best option since the banks have a weird way of calculating your commitment for refinancing.

3. And yes, it is possible to "btw is it possible to do the loan under other person name or even mine"

This is called a 3rd party loan. I have discussed this in this thread before. Essentially, I think what you are looking at is 3rd-party innie and outie.

4. But wait, you mentioned that you have not yet worked yet. Based on your father's income, it may be difficult to refinance the house since if he is the sole applicant, the tenure would be very short. Is there anyone in the family who is around your age and with an income?




It depends on your credit rating and how the banks are scoring you. But according to my table here (a mish mash of so many info)

Hlbb: 4.65%
Amb: 4.45%
Mbb: 4.50%
Ocbc: 5.05 %

Anyway, when applying there are a lot of factors that come in place too like the loan tenure, max MOF, LVS inclusion, etc. Let me know what your needs are and Ill make sure I match you with the right banks

This post has been edited by wild_card_my: Jan 16 2015, 06:59 AM

Welcome back bro. Of course work at hand (that feeds the family takes priority). Was concerned that you were potentially caught up with the floods that caused your absence.

u said the bank will give 90% money of the valuation of the property,is it possible to loan only 50% of the property value?just curious.

For no 4,yes.my brother net income 6k but is it possible to put someone other than family members to joint loan?

Hi all,

Want to enquire. Can I apply for 2 loan the same time?

Below are my case:

Case 1:
House Value: RM 520,000
Loan: RM 240,000
Borrower: Me and my mother
Me: Salary – RM 4,900; Average Bonus: 7-8 months; Age: 30
Mother: Salary – RM 5,000; Age: 60 (retiring)

Case 2:
House Value: RM 460,000
Loan: RM 414,000
Borrower: Me
Me: Salary – RM 4,900; Average Bonus: 7-8 months; Age: 30

I already proceeded with Case 1. What are the chances I can get Case 2 loan.

Thanks all.

I was bed ridden for a bit though due to dengue. But I was very concerned about my clients' applications though since there were some that I had to KIV. Buit all is well now, I am close to 100%.

1. Yes, the max MOF for refinancing is capped at 90% of the MV for most banks (some banks cap at 80% or lower) and it is POSSIBLE to finance/loan only 50% or lower than the MV of the property. The banks prefer it that way too, you pledge a 100% property, but they only need to give you 50% of the MV to you in cash...

2. Yes, it is possible to put someone other than family members for a joint loan. This is a grey area that I would rather not talk about, but if you say a random person is your "sister-in-law" that wishes to joint-loan or apply for the 3rd party loan on behalf of your property, how are we supposed to prove that the person isn't your sister-in-law?

But remember, the banks have the rights to reject any loan application if they feel something amiss. For example, the SPA name is AHMAD, but the "Sister-in-law" is Ms. CHAN, the bank may require further proof of this relationship :

THis is a grey area, but I will speak my mind since sharing ideas is not illegal. It is possible to apply for CASE 2 from different banks than you applied for CASE 1, and when you accept them at the same time, the banks wouldn't know that you have these loans accepted together.

I know those who have 5 90% loans that he took all at the same time.

Hi, thanks for the many information, after reading down the tread. I wish to get a loan of about 500 k, I have just called CIMB which told me about 5.05%, but heard that interest rate is around 4.5, and see some 4.4% mentioned in the post. Where and how can I get a best rate ?

My concern is the rate, if all of them also daily rest, and flexi as to reduce the interest the very next day. I heard of PB, there is a duration that instalment must be paid, thus if we bank in certain sum outside the duration, we still need to pay the instalment, or else will have certain penalty over the unpaid instalment ?

How to find a good flexi scheme ?

Got some info in this tread on islamic and non islamic loan, seems there are not much different already, then what is the link of islamic loan to islamic ? can any one apply ? what is the implication if there is ? are the rate same ?

If a loan say lock in period of 5 years, is it from the date start loan or date of complete drawdown ?

Thank you in advanced.

Hello,

1. The most recent APPROVED LO I got was today, from a local bank, for a loan amount of RM460k+ at the rate of 4.45%, I do a lot of banks and the current competetive rates are about this much.

Just for illustrative purposes only. This does not constitute an offer from me or the bank in question:



2. The daily rest is as it is, the day after your installment or advance repayment is paid for, the interest for that day would be calculated based on the reduced outstanding balance.

3. Flexi scheme is good for those who are running a business, it's not bad for those who have money in and out of the loan account too because you can save the interest payable for each day your "income" is deposited into the loan account.

4. Yes, ALL of my non-Muslim clients opt for Islamic loans due to the advantages that come with the loan.

a) It has a PROFIT CEILING (interest rates capped at about 10%++) which means even when the BLR or BR is pushed to higher 13 and 14%, the interest rates charged to you is limited.
b) Islamic loans also do not have any lock-in periods
c) The rates and maximum tenure are completely the same.

Of course, I can still help you with conventional loan application. The decision is yours, but as a broker, I do recommend Islamic loans.

5. Usually it is the date since first drawdown OR from the date of the Loan Agreement. That means for under-construction properties, the construction periods is included in the lock-in period - good for you. But then again, Islamic loans have no lock-in periods at all, so there's that

This post has been edited by wild_card_my: Jan 16 2015, 09:31 PM

Sifu, will spread rate fluctuate? or will remain same throughout the loan tenure?

It will remain fixed. When you are offered a loan, the effective interest rates will be quoted as:

BR + x.xx%

BR will fluctuate according to the bank's and the nation's economic performance, the spread will remain the same

Only for illustrative and educational purposes:

This post has been edited by wild_card_my: Jan 16 2015, 10:01 PM