I'm thinking about getting a loan for a new house. My salary is 12k before epf n socso deductions. My only commitment now is car loan at 1.2k per month. Is it possible to get a full home loan? Because I don't have any savings. I guess it would be better if I can commit a sum of my salary to paying off mortgage rather than spending alot every month

Dear,

1. Based on your details, gross salary Rm12,000, commitment on car loan Rm1200/month. I will overstate it to RM1400, Usually banks calculation would be higher. The get accurate figure, would need to know the credit limit of the debt commitment. However, based on this, your max loan eligibility is RM1,225,000 FOR hlbb, for other banks max loan eligibility do look at right bottom section yellow highlight.

2. It is possible to get full margin finance 90% house loan, but really based on how much loan you are applying for.

3. Is saving amount determinant factor? Yes and No. You can opt to provide document that doesn't show your saving in banks and opt for banks that you are not currently have any account with. But still it doesn't affect much, as you can explain that this account is just prolly to receive salary.

4. Commit more downpayment? In my opinion, I would not consider this a wise move. If you can borrow more, borrow more. If you lash out too much cash upfront for the property, your cash flow would hurt badly, your cash would stuck inside the bricks of your property until you refinance cash out/topup or sell off your property.

If you would like to pay less total interest for the whole loan tenure, opt to borrow 90% margin of finance and credit cash into the capital account to reduce the interest charges.

5. Paying more upfront would lead to lower installment, however your cash flow would be disturbed. It's not a wrong decision, it really depends on your financial objectives and your comfort.

100% loan is possible but the chances to get it is harder now.

You will also. We'd to spend some money on s&p and loan agreement lawyer fees.

If you need help with loan analysis feel free to whatsapp me

I don't have money to pay for downpayment because I don't have savings. That's why I'm thinking if it's possible to get a 100% loan on a property no more than 700-800k. At least I can commit some money monthly to pay off mortgage and I'm actually spending money on something which I actually own.

My car loan will be done in 6 years time.

Then my question to you is

Are you able to afford to pay the s&p and loan agreement about 30k for a 700k property ?

This post has been edited by lifebalance: Feb 12 2016, 06:03 PM

Hi guys. Really need an advise. I sign SNP on 1 November 2010. Lock in period for my loan is 5 years after the first drawdown which is on 1 APril 2011. so if I want to sell my property, the snp with the new buyer should be dated 1 APril 2016, if i want to escape the lock in period of 5 years. is that the right way of calculate the lock in period.?thanks.

Nope

It's based on the loan settlement date which you need to get the redemptive statement should you choose to sell the property off. It's not based on the s&p signing date of when you sold this property to.

Technically you're settling the loan by selling off the house and then it's disbursed to pay off you current outstanding with the bank.

But since now it's already February, normally the drawdown would be 2 months later so you should be able to catch the train.

If you need help, whatsapp me anytime on your application

Thanks Keith for prompt and clear reply. to recap what you said if i choose to sell it off now, i should be able to escape the 5 year lock period. thanks again.

Dear,

1. In a scenario of you qualify for 100% loan, you will save up on your 10% down payment cost.

2. If you buy subsales, you will need pay for legal loan, spa stamp duty, spa loan, spa stampduty. However you can finance you can finance legal loan and valuation into the loan amount. Hence you will just pay for the rest

3. If you buy undercon property. Usually developer will cover spa loan. Hence you just finance the rest legal loan, valuation into the total loan amount. Then you can save up alot.
Some developer will cover all the cost, hence you will be like zero down purchasing the unit.

May I know what are the maximum permissible DSR for various banks?

Assuming loan of RM700k, 90%= RM630,000 for 35 years

depends on ur salary range, you will need to let me know on this, the DSR could range from 40% - 80%

repayment for RM630,000 for 35 years is roughly RM2981

If you need a clearer mortgage planning feel free to drop me a whatsapp to talk about it.

This post has been edited by lifebalance: Feb 12 2016, 10:34 PM

Dear ripplezone,

1. There's a max DSR 90% for one bank. There's lowest 55% for certain banks. DSR % depends on your income category.
Example for bank A.

Income less than 3k, 55%
Income 3k-5k 70%
Income more than 5k is 85%.

Bank B

Income less than 5k is 70%
Income more than 5k is 80%.


Conclusion
Different income category, DSR is different. Different bank has different DSR set.
Will need to analyze your income in order to categorized which DSR section you are eligible for. My analysis table will show which bank you are eligible for the loan rm630k loan.


I need to know your income, debt commitment to analyze it.

i have bought a property, sign S&P and loan secured. since its my 5th unit, my loan is 70%.

i have settle the 30% downpayment. with the economic downturn, and my loss of job is imminent, how can cancel this purchase ?

Dear,

1. Have you sign the facility agreement?

2. If you cancel ur loan, bank will charge penalty around 2k-10k varied with bank.

3. To get back 30%, you need to discuss with the developer or the seller to come in mutual consent with a valid explanation that they accept.
Is it a subsales or undercon property?

this is new property under construction. the facility agreement had been signed.
if developer refuse to give in, how ?

Sell one of the 4 other properties you own.

Dear,

1. It depends whether the project is under Housing development act, if it's under HDA, developer are required to return booking fees back to client if given the loan application failed. If it isn't, it really depends on the developer decision and subjective by nature.

2. If worst come worst. You are stuck with this property and zero cash flow. Do sell off some property to sustain ur cash flow or living etc.

Most likely you have to either fail ur loan to show that u can't afford the purchase

Otherwise you risk losing 30% rather than long term commitment of the property

Or you have to sell off one of your current properties in the future to cover the cost of this new purchase

If I have to sell off one of the good property to finance this newly built, then I might end up in double jeopardy. I dont have good feeling that this new property will grow in value due to present over supply of condominiums.

I would rather risk losing RM 10k on facility rather than facing 'abandon project' or undervalue for sale. so its discussion with bank more effective ?

Not really. You may inform the bank that you'll be losing ur job soon by some proof that ur company is kicking you out soon or near future, then once u get rejected by loan you may show it to the developer that you can't obtain the loan for the purchase/