Dear Leo,

1. For unencumbered property, yes you are entitled. Meaning to say, when the property has paid off all outstanding mortgage loan, you can still cash out your property value. Hence, your property which you had paid all off, will tied with bank for mortgage loan in order to cash out. Let's say your property Rm500,000 and your property outstanding balance is 0, you can cash out Rm500,000 x 90% = Rm450,000

2. Cash out loan tenure will always based on your current age, max 70 years old. If your age is less than 36, 35 years loan tenure won't be a problem. 10 years is the loan tenure calculation by the bank to consider your Debt Service Ratio for cash out portion for encumbered and unencumbered property. Bank will be conservative in using 10 years instead of 35 years. For bank like OCBC and HLBB, the bank DSR calculation for DSR cash out portion is 35 years for unencumbered property and 10 years for encumbered property.

1. No.

Transfer with love and affection will involved S&P agreement definitely, just that you get 50% discount out of the "Stamp duty charge for Memorandum Of Transfer" cost.

2. unencumbered property, you need to provide SPA of the transferable ownership property, IC and some contract signing with the assigned lawyer.

3. Refinancing loan, you get to chose any one of the 3 packages. Fixed rate loan only applicable to AIA loan. The rest of the bank will provide flexi loan and semi loan but each bank comes with its own term and condition.
The withdrawable fees, processing fees, penalty policy, capital transfer time and amount... etc etc

This post has been edited by Madgeniusfigo: Nov 11 2015, 10:46 PM

Dear bee bee,

CLTA? it could be another nick name for MRTA, rebranding happens always in finance line. are you paying CLTA in lump sum figure?

1. For Rm688,000, effective lending rate of 4.4% is good enough. Consider the best in town rate, it can go lower to 4.37-4.35, but it really depends on your profile.

Dear,

1. I wish too, but I can't. This is my companies asset and has been copyrighted. IPP in protection...

But I can teach you the standard calculation to predict your loan eligibility, with standard deviation 1-5%

This post has been edited by Madgeniusfigo: Nov 12 2015, 11:12 PM

Dear,

If you pay it in one lump sum then definitely it is MRTA or maybe a hybrid!. SUch a flashy name for MRTA nowadays.. haha

What's the benefit and structure explained to you by the banker? Anything similar as below

Dear

1. The 50% waiver is like a one chance (talian hayat) if you didn't use it on your first property, you can use it on the 2nd property.

2.No, for KWSP withdrawal, you are only eligible for the withdrawal given that you only have 1 property. If you have 1 property and intend to purchase another one and intend to withdraw EPF acc2 cash, you must sell off your property, before you could withdraw.

If you have settled your properties and unencumbered, how EPF knows you have x amount of settled properties? They can search through land office, how amny titles hold by you..

Dear,

For what I know of till now, there only allowed as what I have told you. They might have changed.

even in their clause of terms written is as below.

Could you show me the full reply from the EPF, so that I can validate whether they had change their clause.?

Dear,

1. Yes, of cos you allowed to remove CLTA. It is optional. But it will be troublesome as the loan has been approved and making amendment will take some time, so if you are in a hurry in securing the property, do just go with it. If you have time to spare, do ask for amendment.

2. Usually, RHB would give a good rate if MRTA/CLTA is included, hence by removing it there's a probability chances that your rate will rise, but it is really subjective. If your profile is really good, there would give you the best rate. Hence, your rate 4.45% might stay on hold.

3. I bet the agent will tell you, by removing the CLTA, your rate will definitely rise, because it will be a trouble for him removing it and a bashing from the headquarter for not conforming on client's want and need before submitting the loan application.

Dear,

Take your case as example, loan RM358,000
a) 4.45% /35 years
b) 4.5% /35 years

The total payment for 4.5% is RM711,589
The total payment for 4.45% is RM706,939

The difference is RM4650 for 35 years saved on the 0.05% interest rate.

1. If you will serve the loan for long term, you will benefit more taking good rate rather taking Rm1000 rebate.

2. If you will flip your property in near future 10 years or less down the road, save the trouble and take the interest rate you are given now. Take Rm1000 rebate to reduce your entry cost. Higher ROI...






*Edit*
Unintentionally promoting crisis action game.... LOL

This post has been edited by Madgeniusfigo: Nov 16 2015, 01:23 AM

Dear,

Yes, it is one of the option, but the problem with loan street is, the interest rate is not up to date. Other information do hold truth but the rate is the prime factor for a purchase chosing a home loan. Without an accurate interest rate updates, people won't be able to compare.

Dear donald,

1. Now the mortgage market is using base rate, whereby effective rate will be different or remain the same, depends on banks own appetite.

2. Loanstreet rate not to say not up to date, but the rate is not the actual effective rate. Nowadays, the rate are given based on your profile. There's a benchmark rate for each loan amount category and you might get a lower rate depending on your credit scoring and profile.

3. Truth to say, only people working in this line able to grab the latest rate updates for different banks. Currently, for past 3 months, 3 different banks has offer promotion rate, Rm300k 4.4%, each bank had a promotional rate for 1 month.

Conclusion, rate is very fluctuative and unpredictive as bank able to set their spread risk depending on your profile and also depending on their appetite (helding promotion rate). Currently PBB closing year end, pushing their revenue and the rate is fantastic, only for this month. Subsequent month, other bank will start their promotion as well.....

Dear rain,

Banks calculation on credit card is the most standardize debt/commitment calculation.
Bank will take 5% of your total outstanding.

Rm5000 outstanding for month October, your debt commitmenet will be RM5000*5%= RM250

Dear rainderain,

1. You are absolutely right. Bank will calculate 5% based on your credit card outstanding from previous month.

Month OCTOBER
usage of credit card from OCT 1- OCT 30 = RM5000

November 15th, the ccris will update your latest outstanding which is RM5000

Hence, if you apply loan on NOV 15th or after, the credit card debt commitment will be based on 5% Rm5000.

2. Bank will calculate your debt/commitment based on credit limit on:

Hire purchase loan
Housing loan
PTPTN
Overdraft
etc..

Dear,

1. The cheapest method to reduce your interest rate with the same bank is.............................. go to the branch and ask for rate reducing based on the newest and lowest interest rate. This is not well known or told of as bank would definitely keep you in the blind.

Bank will allow such rate reducing give that your repayment of existing housing loan is perfect and no default whatsoever. This is subjective as bank would or wouldn't allow you to reduce the rate, but do ask for the reason for rejecting your request.

2. 2nd method is refinancing, this will only benefit if your rate differ by 10 basis point because you have to pay (stamp duty, legal fees) for refinancing. what's the best interest rate difference should you only opt for refinancing, will depends on your loan amount.


Example. ( A very simple straight forward calculation, accuracy is not 100%)

Rm300,000 loan outstanding

4.5% refinance to 4.4%

Refinance 35 years

Total 4.5% interest = RM296,303
Total 4.4% interest = Rm288,525

Total interest saved = RM7778
----------------------------------------------------

Total LVS fees for refinancing

Total = RM15,501 (haven't discount)
-----------------------------------------------------
Doesn't worth it, for 10 basis point different on RM300,000 refinancing.

Dear little,

1. When you apply for loan, it will show at bottom of CCRIS application of credit. There will be status whether it is approved or rejected.

2. When your loan has approved, it will state [A] at the application status at the application of credit. Hence, when you applied for another property, bank will question you on that particular loan and calculate it into your commitment.

3. After 1 month, the loan will be updated into your CCRIS main board.

4. Hence, your timing of buying must be right, when the application status [A] appeared, bank will question and take the debt into account.

Dear,

1. Bank will always look at your CCRIS too check on your debt payment record, with ASB loan, yes it will help. If your ASB loan payment for 6 -12 months is perfect and without nay defaultment, bank will be likely to borrow you cash.

2. For bank credit scoring, if you have 2-3 debt with good repayment record, it will increase your credit scoring. As it shows you are a good paymasater.

3. Credit card will boost your scoring too depends on your credit payment record, credit utilisation and credit limit offered. High credit limit with low utilisation and outstanding, will definitely boost your credit scoring, making your application being approved easily.

4. If you are planning for property purchase in the future and wish to plan ahead for a better credit scoring. Yes, credit card do help boost your credit scoring.

Dear,

1. If you settle in within 3 years, for conventional loan. You will be charged 2-3% penalty.

2. If you settle the mortgage early off, the total loan payment will definitely not be lower than RM200,000, because that's what you owe the bank initially.

3. Lets say Rm200,000 loan amount, 35 years. Your total payment including interest will be total up RM 397,534. Hence, if you settle off your loan early, you will just need to pay lesser interest compounded and the total amount payment will be less than RM 397,534.

Dear,

Where your sources come from?

1. For BR, bank has the right to either increase it, maintain it or decrease it. Hence, it will be subjective

2. For BLR, the increase will depends on BNM, hence if it increase, the cost of borrowing will rise and BR will logically rise accordingly. But, BR changes are controlled by own respective bank, hence if the bank wants more business, they will maintain or to the extend lowering the rate.

3. Anyway, I would agree that BR and BLR will increase in the future, look at the weak ringgit and the economy by itself. The market need to self correct, even though increasing the rate will pressure the mortgage market with high housing debt to GDP. But let's just cross our finger and hope for the best.

Dear,

1. If both bank offer the same rate and margin of finance, go for the one whom provide the beat service. In the end, I would chose agent who provide the beat service, given the rate doesn't differ in quantum.

2. But with the details you given, I would suggest you go for Rhb. The facility provided by both bank is the same for the loan facility stipulated terms similar.

3. Moreover, Cimb has a new restrictions on their flexi terms which is quite devastating.
Hence, it is quite clear in terms which bank you should opt for.