You still can borrow up to 90% as the 70% cap rule applies to properties with loan outstanding. Since of your existing 2 properties, one is without loan, if you apply a mortgage loan now, this will be counted as 2nd property loans.

In your CCRIS there should only be 1 housing loan/credit-facility. So when you apply for a mortgage, you should be able to get 90% MOF for your 3rd property.

Out of topic but related: If you have an unencumbered property that you want to refinance to get some money, the rule above does not apply to this refinancing. Meaning even if you already have 2 housing loans, and you would like to refinance your 3rd unencumbered property, the MOF for this new application will be 90% and not capped to 70%.

Hi all, I am seeking some advice in acquiring my first home. I am targetting a 300k apartment near my wife's work place. Both our income are probably around 5.2k, both are new workers with less than 6 months experience. My questions are:

1. Is it possible? Assuming a 1.5k loan commitment per month, would the bank agree since we are still new to the working field. Maybe the Skim Rumah Pertama is a good choice? Also, we have zero credit card and zero loans for now. Should we take one to increase our credit rating? If I just apply for one card and never use it once, will it still count?

2. Is it advisable? My wife's working on a 1-year training contract, is it better to just rent there? However, renting there is ~1.2k which is probably around the same as buying. To buy or to rent?

3. If you advise me to buy it, what's the exit strategy if I need to move? Rent to other people or any other options?

4. If you advise me to just rent, why is it? I am still new and should focus on accumulating wealth first? Property sector not so good now? 300k is too much for me?

Thanks and sorry for the long questions!

This post has been edited by Cubed1437: Jan 27 2015, 03:04 PM

Hi Sifus, Is it still possible to get up to 95 percent loan nowadays for subsale properties? which bank still providing that kind of financing? would be glad if anyone of you can help out

Hello.

1. To be more accurate with the loan calculation, can you please give a break down of each of your GROSS SALARY, and the commitments that you mentioned (original loan amount as well as the current outstanding) and the monthly installment for each loan

2. I would usually tell my client that if you are going to be certain that you will stay in that house, to avoid buying it. If the house is within KV, then MAYBE it is wise to buy. But even getting across KV during peak hours is a hassle. Will your wife be working in the same area as the house in the near and mid future? Only you can answer

3. Renting it out would be the best option, not to sell if it is still newly purchase. Remember, when you purchased the house, you are also incurring other costs such as the SPA, Loan Agreement, as well as insurances (if any) that tops up at around 5% of the total house purchase cost on top of the 100% of the house price.

4. Renting is a good idea since you get to have top option to be mobile with your "home". Are you sure you only want to buy an RM300k house as the house for the next 5 years at the minimum? Would it be wiser to wait until you can afford to buy a house that is a little higher priced?

Hello, yes, most banks do allow the inclusion of the Legal, Valuation, and Stamp Duty (LVS) into the total loan. That means the 90% would go towards the house purchase, and UP TO 5% for the LVS (based on a certain calculation, the bank will NOT hand you the 5%, instead it would be given to the lawyer).

As far as I know, Ambank and OCBC does not offer this package. Maybank, Alliance, and HLB: YES

I would highly recommend that you take a credit card facility, to build up your credit. Below are the break down of your loan eligibility. You wife's DSR limit should only be 60%, but when combined with you it will be 85%

Hmm, that means I can just apply for the loan with my wife's credit only instead of joining. Good to hear that.

For the credit card, if I just apply for it and never use it once, does it still amount to 0 in the credit rating? Or I atleast need to use it first and service the credit, only then it will be rated? (Sorry for the newbish question)

Last question, if I opt for a long tenure (eg 35 years), the interest will usually be a huge part of the loan, can I do full settlement and thus minimising the money going to banks? If so, what kind/type of loan is it? Flexi? Any recommendation on which bank/product to apply? Thanks!

Yeah, to be honest it would be much better if the application is done as a single application if possible. This will allow your wife to buy 2 more properties under her name at 90% in the future.

2. Yeah, just get the credit card, pay the annual fees if any, and keep it locked in a locker or laci. You can use it for emergency! I personally have a card in my car hidden for emergency, you can do that too.

3.Yes, you can do full settlement at any time and you are only responsible for the outstanding portion of the loan, and not the future interest. You can also choose to pay more than the usual monthly commitment, and the extra will go into paying the loan outstanding, thus reducing future interest payable AND shortening the tenure!

Most banks offer flexi facilities nowadays. The difference are between full and semi flexi. I can help with application to 5 banks: Maybank, Alliance, Ambank, OCBC, and Hong Leong. And my services are free ya, since I get paid by the banks.

Thank you very much for the prompt and great reply. I'll make sure to contact you if I intend to apply loans in the future. Cheers!

Can i get a loan from non panel bank ? What are the disadvantages?

The bank you apply from which is non panel would need to do the legwork to empannel the project. Most bankers (And brokers) are not too keen to do that because a lot of work for a single case. But once the project is empanneled any banker (From that particular bank) can join in and do the case and the person earlier wouldnt get any benefits from it.

Secondly, if you empannel it through adhoc (As above) there is a good chance that the offers like "free loan legal fees and stamping" given to the client would not be available to you

Finally, it would take time for the whole process to finish, moreso than if you were to use panel banks

Hi All,

I have one inquiry.

My situation is like this.

SNP = my name
LA = My name and wife as guarantor.


is it possible to do 3rd party refinancing as per below?

SNP = my name
LA = my wife

May I ask for those on going uncompleted commercial projects which S&P and loan agreement has already been signed, can the 6% GST still be build into the mortgage or the buyer will have to pay the 6% by cash on every progressive claim after the 1st April ?

1. For the first case, let it be known that banks are not too keen with guarantorship, as such we can consider this a 1st party settup

2. For the second case, out of the 5 banks that do, only OCBC can do this particular 3rd party setup.

may i ask about! recently i buying a house is RM360k
but the agent told me that can do full loan as because the owner is selling under bank value. is it possible to do full loan for something like this?

and the agent told me if doing full loan. the bank if approved the loan after the 3-4th months later the bank in credit back the 10% of the payment i made to owner 8% & 2% for the agent.

extra info-
the owner own this property is around then 10years

Able to do so if the owner willing to mark up the rice in SPA. Actual price is 360k, let's say owner willing to mark up the price in SPA to 400k, provided the bank valuation also can match 400k, then you might be able to get 90% financing of 400k, which is 360k.

Of course, you will be paying higher legal fee, higher stamp duty.

This post has been edited by Fat3Twister: Feb 3 2015, 11:36 PM

hmm how about the 10% i have made!?
bank will credit back to me or?

Some banks will directly credit to seller's account while some banks will credit to the lawyer and lawyer pay to seller. So you have to arrange with the lawyer

ok thanks alot Fat3Twister