Dear,

1. With your profile provided, your max property price is RM 611,510. But only HLBB could finance such priced property, hence on the safe side, it is better to purchase property below RM420,000, there will be more bank capable of financing your property. Bank will be able to finance your property price range from RM611,000 and below.

Dear,

1. For the employment letter part, usually if you have been working in the company for more than 3 months or more, it is not needed. Or possible, bank couldn't contact your company phone line and so they need a prove showing that such company exist and you are actually working for them. There's lots of different variable and questions pop out form credit controller side, or he/she wants it so that in case anything happen, they have the document provide to the CCD right away. What's the reason he needs the employment letter?

2. At Old klang road, Kuchai lama Or KL kia peng. I have 2 office though.

Dear Jason,

1. If it is a MNC, it is the easiest entry for housing loan application. They might have their own reason, as I am not a part of it, can't give you much advise.

2. Fire insurance is a must, usually bank will automatically purchase it on behalf of you. As this is the highest risk for owning a house.

3. For direct banker, they could belong to any different branches, different branches will have their own core competencies to compete with other branches. Sometimes they would give free legal SPA fees for this project, only if applicant go through this bank and this one and only branches. Hence sometimes different branches have their own way of doing things, not entirely as they still need to follow HQ strict guideline. The branch direction are set by the Regional maager itself, sometimes they view certain product as importance to hit their quota, hence they will enforce a must include for certain things...

4. Anyway, to your question, even though you are forced to take MRTA, if you insist in waiving it, you are allowed to. I can't speak on behalf which branch you are dealing with but I can assure that there isn't a divine compulsory to take MRTA (I speak on behalf of the bank I represent). For all this years, I had never force client to take any products, I would just explain in depth of the pros and cons and let clients decide by themself. I believe in educating a person so that they are well informed in making sound decision.

5. HQ policy will change from time to time, as most of the banks are quite conservative this end of the quarter. They might enforce MRTA as compulsory to protect themselves from any possible clients default in the future. I don't blame them for making such forceful move, for business the director have to secure their profit and mitigate losses. If they show you a letter from the HQ, then no choice, but you still have options from other banks which offer you loan without including MRTA. Hence, to my stand, MRTA is not compulsory.

This post has been edited by Madgeniusfigo: Dec 9 2015, 03:34 PM

True, to what you say. It's never compulsory.

Can't blame them much, sometimes there are being trained to sell in such a way.

Thanks for your token of acknowledgement! haha

Dear,

1. May I know what is your existing interest rate for your current housing loan?

2. Rm300,000 loan 4.65% definitely not the best rate in the market so far. You can fetch around 4.4-4.5% interest range. But take it or leave it kinda situation as rate revision cost you nothing and if your existing rate to current rate differs by huge quantum, why not taking it.

3. You might ask what's the best solution, either to refinance and get 4.4-4.5% interest rate with cost or just revision of rate. Which one will save more in the long run. It really depends on the loan term remaining, the amount of the legal/stamp cost. If you have been serving this loan for 10-15 years, it won't worth to refinance. Because after 15 years or 20 years onwards, the installment you are paying will direct more towards paying off your capital instead of your interest. Hence, refinance will roll back in serving more interest. This is more technical as much calculation is need to calculate the most feasible solutions

Dear,

1. Forget about maybank, their portfolio for mortgage has reach their target and profit, rate will be the worst among the 3.

It depends of your objective, for HSBC free moving cost package, you will be bind for 5 years lock in period.

If you are just purchasing this property for own stays, HSBC would be the best choice.

-as the rate is of equal
-lower entry cost for HSBC, hence less burden from your side.
-You are not selling/flipping your property in short term, hence 5 years wouldn't be a problem.

2. However, if you expecting yourself to sell off the property or refinance in short interval, Ambank would be the best choice. Please note that AMBANK full flexi will charge a monthly RM10, RM120/year.

3. Other bank, you can try public bank islamic loan, no lock in period. Moreover, public bank rate is very aggressive for this end of the year period. could go 4.35-4.4%.
*note* Islamic loan documentation will be more, hence stamping fees will he higher compare to conventional loan. Other than that it's comparable to conventional loan.

If you just want the cheapest interest rate, go for PBB.

Dear.

1. Yes, RM595,000 is probable for 90% loan, but have to look at your payslips credited, bonus payslips credited to see if it shows exact income as being told by you.

2. If you go for RM595,000 , only HLBB would be possible to finance you, as they are currently the most flexible in DSR given. for 100% loan first housing scheme, this is very subjective. Banks guideline is abit more strict in giving 100% loan, as their risk is higher. Their one of the main criteria is 60% DSR, But PURCHASING rm595,000 Property, your DSR will be skyrocketed. Hence, it won't be possible to get 100% loan.

Dear,

RHB and AMBANK is almost the same.

1. Given that both rate, loan tenure, packaged is all the same. Go for the one which is more convenient to you, closed by, more branches visible.

Dear,

BR+SPREAD rate

The difference is with their spread rate. Bank A spread rate 0.65%, bank B spread rate 1.25%. Spread rate is fixed throughout the loan tenure.

Meaning

Bank A -4.45% ( 3.8% +0.65%)
Bank B - 4.45% ( 3.2 +1.25%)

When Base rate rise for both bank by lets say 0.5

Bank A -4.95% ( 4.3% +0.65%)
Bank B - 4.95% ( 3.7 +1.25%)

When Base rate rise for only Bank A 0.05%

Bank a- 4.5% (3.85% + 0.65%)
Bank B - 4.45% ( 3.2 +1.25%)

- For now the conventional method is to go for the lowest spread rate, as the theory holds. There isn't absolute winning strategy here as base rate just introduced into our system. Hence, just go for the lowest effective rate or whichever bank provides the best services.

Dear,

1. Not just HL islamic offer such option. HL islamic loan will still required to pay progressive interest, just that the progressive interest is name as "Profit payment". Hence, the option to pay installment during the construction period depends on the bank.

2. For all the bank, usually you will required to pay for the progressive interest during construction period, till 80-100% completion then you will only start paying full installment. However, some bank allow you to pay installment right away.

3. However, paying full installment right away is detrimental, as you required to pay the full amount from the start. There's few bank that allows you to offset your capital while paying more than the progressive interest charge.

Or if you are cash rich and wants to settle the HL asap, take flexi account, every disbursement released, you credit the exact amount, hence save on the interest charged. You can withdraw it after the completion of the property.

Dear Seng_Kiat

1. Your friend profile with her income, she can purchase property up to max RM1,000,000 with HLBB and RHB. Other bank can finance property price up to max RM860,000

2. Purchasing RM780,000 will be alrite. If she opt for 90% margin of finance, will need to look at her CCRIS and CTOS before I can give you my answer.

3. The commitment of her housing loan is stated as Rm1000 in the loan analysis because, bank calculation for monthly installment is always higher than your normal installment calculation. The mortgage is joint name, hence I have divide the commitment by half.

4. Overall, it won't be a problem in purchasing RM780,000 property with DSR less than 60%, to be safe, I need to go through the documents before I can give you any confirmation on it. Sometimes, client's document shows different amount and other minor factors that will alter the income.

5. Yes, husband with 2 mortgage loan, 3rd house will only receive financing of max 70%.



This post has been edited by Madgeniusfigo: Dec 11 2015, 01:44 AM

Dear,

Paying full installment from the start is a double edge sword, let me clarify why:

1. Your ideology isn't wrong at all. You start paying full installment will allow you to pay off your mortgage loan quicker and you don't need to waste much cash in paying off progressive interest. This method is only feasible to people who wanted to own and stay at the property, because investor who invest in underconstruction property would reluctant to pay more upfront, as it will diminish their cash flow. In retrospect, you save on paying less for the interest but you are committed to start with full installment.

But...

Scenario 1.
What if after 20% of construction completed, your developer went liquidated? You are committed to pay full installment instead of the 20% disbursement progressive interest. If there isn't any developer taking over your project, you will be paying full installment for years and years to come, paying the installment without having your physical property completed. If people are paying just the progressive interest, at least their loss is minimal, whereby paying 20% of the progressive interest, their cash flow isn't destruct badly as yours.

It's very subjective, there's few ways of looking at this method though.

Dear,

1. 90% is good
2. 35 years max loan tenure is good
3. rate 4.45% based on loan amount, if it is around rm300k loan, then it is good
4. good
5. good
6. good
7. MLTA would be preferable

Dear,

1. When you purchase underconstruction property, you won't get MOT straight away. Developer has to applied for the strata/individual title before you could do your MOT. But, you will get Deed of assignment or Deed of covenant for the meantime.

2. Do remember, bank is the sole purchaser of any property in the market, without bank we are unable to purchase any property, excepet ofr certain individual who are cash cow. The title would usually have the bank name, after you have pay off your mortgage loan, only then the title would state your name, then you are the sole official owner of the property.

3. standard procedure, no need to worry.

Dear,

1. Housing loan would be the normal semi flexi, MortgageFlexi would be their full flexi. There's a different between them




2. Agent told me currently HLB able to offer better rate if I choose Housing Loan instead of MortgageFlexi.
Yes, hlbb seems to go by this method.

3. If you are purchasing underconstruction property, please be aware, HLBB has been quite conservative in financing underconstruction property. Some projects they will cut margin and loan tenure. 89% 33 years for mortgage financing, it doesn't seems much big of different but you have better choice with other bank. DO confirm with HLBB or your developer whether they finance full 90% 35 years or 89% 33 years.

Dear Mr.LKM

1. Bank is an institute financing us the loan, bank is taking on risk financing our mortgage loan. The risk for someone owning the property for staying is lower compare to people financing it for investment purposed.

For investing purposed, investor often over extending themselves, leverage to unhealthy manner. A sudden turn in the market sentiment could suppress their cash flow and caused them default on certain loan.

For owner occupied, they purchase the property solely to shelter his family. They will work hard to pay off their mortgage as this is a house that they sleep at.

2. Bank will slashed margin for a higher risk financing. Meaning to say, if you stay as investment purposed, your margin of finance will be limited to 80% max only.

It is to your own discretion to either stating honestly to the bank or not. By being honest, you have to fork out extra 10%, hence it is up to you that simple.

This post has been edited by Madgeniusfigo: Dec 12 2015, 11:47 PM

Dear,

No problem, Hope it helps!

Dear specopsmarines,

The lowest rate offered by bank changes monthly nowadays, every bank has their fair share of promotion to entice clients. However, more banks started to shutdown mortgage portfolio, not exactly shut down but rising the rate astronomically till no one will apply with them. OCBC, ALLIANCE, MAYBANK and more to come..

To your question

1. Rate is very dependent on the loan amount. The benchmark

Rm200k below 4.55-5.1%
RM300k-Rm499k 4.4-4.55
RM500k and above 4.4-4.45

Different bank offered different rate for different mix of loan amount category, rate will improve if your profile is the banks target segment.

2. Different bank has different policy, different set of documentation requirement, different ball game. Hence, it is better to get a mortgage consultant to look through your documents, your profile and check your ccris ctos before submitting any loan application. Bear in mind, if your profile is terrible and you spam to all the available banks, chances of your approval will be low. Lets say Bank C is the only bank that would approve your loan, but you have spam to bank A,B,D,E & F that rejected your loan application, the rejection will be stated in your CCRIS credit application section. When Bank C look at the rejection status from different banks, bank C would be reluctant to approve your loan.

3.Before you proceed with loan application, try to understand what makes your application more enticing to the bank.

Read: This Thread


4. Understand difference between Semi and full flexi



5. Understsand difference between MLTA & MRTA

Dear Whynerd,

1. Term loan

- Can pay extra but only into early settlement
- make extra payments, sometimes have to inform prior inform
- doesn't allow withdrawal of additional amount you paid earlier.
- If you settle earlier, of cos you saved on the interest.

2. Flexi

- Can withdraw cash
- No need prior inform
- can pay extra.

Dear eistern,

1. Full flexi islamic? Islamic is either BBA or musyarakah mutanaqisah

2. 4.3% ? Are you sure? have you seen the Letter of offer?

3. islamic loan with lock in period 3 years? Are you sure?

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1. It is a good deal if given details is genuine.

2. Conventional and islamic will do, since you are selling it after 7-10 years

3. you can't put in 100% max, it will auto settle.