Dear

To be succinct,

Conventional loan

1. have lock in period 3 years

2. optional semi or full flexi package


Islamic loan

1.
-For islamic loan there's 2 package for it, that is Bai Bithaman Ajil (BBA) and Musyarakah mustanaqisah(MM).


For BBA there's a max cap amount that you pay.
example
RM200K LOAN/ 5.5%/ 30YEARS =Installment RM1135.58

Total price to be paid is = RM1135.58 X 30 =RM408,808

-This price stated in the contract will be the absolute price, the fixed profit has added into the total payable amount. For loan settlement, for usual loan, you will just need to pay off the outstanding balance stated in the bank, but for BBA product, the total final price has been stated in the contract, hence when fully settle, BBA will gives away rebate on the selling price which is equivalent to profit not realized. There isn't any clear formula for the rebate though...

Musyarakah mustanaqisah
-tries to be the complete and newer version of islamic loan
- it is similar to conventional loan in terms of interest calculation, interest rate, early repayment and capital repayment. The difference is this loan is a Profit loss joint venture for you and the bank. Starting 10% (DP) will own by you and 90%(bank purchase) own by the bank. Throughout the loan tenure of paying installment, bank will act as leasing you the property, you will slowly pay the installment(rent) to the bank and slowly owning more %shares of the property.

2. Islamic loan has the benefits of no lock in period, but the documentation for islamaic will have extra 3-4 more. Hence the legal loan fees hike 20% more, around RM600-RM1200 (However some bank will impose lock in period on your islamic loan)

3. Not many bank offer Musyarakah mustanaqisah, most of the bank offering BBA nowadays

4. Most of the banks islamic loan package is semi flexi, full flexi package offered last I did is with ALLIANCE bank.

Dear ~berry~

1. Your 1st mortgage will be 90% MOF, 2nd mortgage will be 90% MOF, 3rd mortgage on wards will get 70% max MOF only.

Hence, 90% margin of finance are allowed for your 2nd property mortgage loan

2. May I know your bonus is whether performance or contractual?
If it is performance bonus, do provide 2014 bonus income figure.

3. Based on your income and debt which only have mortgage loan commitment, Your max loan allowability is RM488,000 (without adding bonus income), hence purchase RM440,000 PROPERTY wouldn't be a problem. DSR is within

Dear Win44,

1. For Ambank, islamic loan will be semi flexi. Term loan and semi flexi is different, don't mix it up.

Semi flexi is semi flexi
term loan is term loan

However, what you haev definitely is ambank islamic loan semi flexi, meaning to say, you can reduce your capital by cashing in extra cash into your capital account, you need to give notification in advance for withdrawal or crediting of cash from the capital account. It is daily rest

Advance notification is needed in order to credit the cash into capital account, else the cash will be credited into advanced account, whereby the cash can't be withdraw and act as advance installment payment in the future.

2. For installment part, if you pay extra installment, your mortgage loan tenure will be reduced as you are paying more towards capital.

example

Rm300k loan
4.5%
35 years

Installment monthly = RM1419.77

First month interest payment will be RM1125

Hence, paying towards capital will be RM294.77 (1419.77-1125)

If you pay extra RM200 + RM1419.77 = RM 1619.77

You will be paying more towards capital Rm294.77+rm200= rm494.77-----> capital

Hence, your loan tenure will be reduce ( given the interest base rate remains)

However, extra installment cash paid can't be withdraw, do take note.

3. I can't recall ambank withdrawal multiple, usually in the multiple of RM1000 RM2000 RM5000. Do call ambank customer call centre for verification on this

Dear charlz,

Uncompleted property (underconstruction)

1. You can't do pre approval loan
2. You get feebies, discount, rebate, you name it. 10-20% for certain properties. Hence you get free cash out for purchasing the unit, given that the developer honor the deal.
------------------------------------------------------------------------------------------------------------------------------

For uncompleted property and near completion property. The process is almost the same.

Before property completed, you will need to pay progressive interest, which follows the schedule of payment as below:



1. If you purchase a near completed property, lets say disbursement at stage No.7, you will be paying progressive interest based on the disbursement of 60% of the loan amount.

Difference is which stage of payment you are at and how much you need to pay.

2. Buying near complete property doesn't necessary means developer wind up, it could due to low demand on the property hence units only capable being sold at later stage.

3. You will still follow same process, sign booking form, sign Letter offer, sign SPA.

Dear,

1.

Example.

Rm150k loan, 4.85%

Monthly installment Rm807

Rm807 ( Rm700 interest payment + Rm107 Capital payment)

If you pay extra Rm400 each month

Rm1207 (Rm700 interest payment + Rm507 towards capital payment)

You will pay more towards your capital, reduce interest charges, reduce loan tenure.

2. EXTRA payment on installment is non withdrawable

3. Extra cash credit into capital account with flexi account can be withdraw.

4. If you just wanted to pay extra installment, doesn't mean you must take Full flexi. semi and full features is almost the same, just the payment method and charges is different

Dear captain America,

Nowadays refinancing cash out quite tough, market slow, bank tighten.

1. For low interest rate ambank, cimb and Rhb. Hlbb, uob do provide low rate but dependent on ur profile. Must be very strong to get low rate.

How much is the loan amount you are planning to refinance and cash out?


Cash out portion will based on MV - outstanding balance

2. Zero moving cost offered by HSBC, rate will depends on how much the loan amount u r refinancing.

Dear netcrawler,

I will give you scenario on the difference here.

1.
ZMC

600k loan, 4.7% interest rate, free legal and valuation, 35 years loan tenure.

Total interest charged Rm624,010


No ZMC

600k loan, 4.4% interest rate, finance legal and valuation fees into loan, 35yeara loan tenure.
Total loan finance is rm620k

Total interest charged RM Rm596,282


Differ by rm27,728. You will gain more from not taking ZMC, because of the high interest and interest charges.

2. IMHO, if you are aiming for short term flip for ur prop, ZMC will be better, lower total payment compare to without ZMC.

However, if your prop will tank for more than 20years, without ZMC will be a better choice.

3. It depends on ur prop investment objective.

4. ZMC highest interest charges is 4.8%, depends on ur loan amount though.

5. IMHO, both is almost the same thing. Different structure ways to present it self. Same thing though

Dea cclay,

1. The total cash out if based on 90%, it will be RM550X90% - 380K =RM115K max. Given market value is RM550.

2. 20 years? means your age is around around 50.

3. I would need below details, to calculate your max allowable cash out amount:

Dear

If based on refinance cash out RM650K , 4.99%, 25 years loan tenure.

Your installment would be around RM3796/ month.

For the next 25 years, your interest rate will be 4.99%, when property market is in bull scene, rate is low, your rate will forever fixate at 4.99%, which eventually will force you to refinance and incur additional legal charges and so on. Think twice before opting for fixed interest rate.

Dear,

1. CASH OUT Margin of finance highest will be 90%, some bank offer 85%, some bank offer 80%. Depends on the bank

2. Yes, max age loan tenure is 70 years old, hence 38 age this year, your max loan tenure is 32 years old.

Dear echoesian,


CASH OUT

1. is to withdraw money from your property due to price appreaciation.

Example.

2011 bought Property RM500K, 90% Loan Rm450k

2016 Property price RM800K, 90% loan is RM720K

2016 you still owe the bank of outstanding balance of RM400K

Cash out amount is RM 720K-RM400K = RM320K

You can cash out max RM320K from the property.

2. Cash out usually comes from refinance, when you remortgage from Bank A to Bank B, you can opt for cash out to withdraw the cash for own use.

3. The purpose of cash out is for emergency use, investment, or renovation. etc etc

Dear,

1. Yes, top up is alike cash out but within the same bank. The cost for it is Loan legal fees, stamp duty and valuation. However, if you want superb fast disbursement of cash, aim for top up, it takes 2weeks+ for the disbursement to happen. Cash out will take 1month++

If you want better rate or opt for different bank, go for refinance cash out.

If you need to cash ASAP, go for top up.

2. Epf acc 2, Yes.

Dear,

Yes, I can be of your assistance for this.

Dear,

I would go for RHB, lowest spread rate 0.5%. and lowest effective rate.

Dear,

1. It's all stated in the fine print of LO. Bank will take the price lowest given by valuer. Bank won't risk their business and take on a sky high market value. It's a business for them. If the valuer suddenly gave a lower value than before, then everything have to be amended.

2. That's why, for my practice, any value I get, it is written black and white through email or watsapp. So I have the proof to show that he/she given me this verbal value.

And also a guaranteed protection for my client.

Usually, valuer won't differ from their verbal valuation, except,
a. banker simply write the value higher than given
b. being forced by banker at first and valuer feel uncomfrotable after that and opt to lower the market vale
c. The property feature mistakenly describe by the banker itself.

Dear psyconutss,

1. CCRIS will hold max 1 year history, history more than that won't show in it. However, if you defaut certain loan with bank A, cleared off your debt, and apply loan with Bank A, they might still have your previous default data.

2. Let's say, if you have 1-2 arrears with your car loan and wish to apply loan right now this month, you can do so by settle the debt and get a settlement letter and apply mortgage loan. This is doable as arrears 1-2 still not that serious.

3. Lets say, if you have 6-8 arrears for your car loan, it is better for you to settle the debt and wait till next ccris update to clear off this debt. Because more than 2 arrears is terrible in the eye of the bank, eventhough you have settle the debt with settlement letter, 6-8 arrears still visible, bank will definitely take precautious.

Dear cclay,

1. If you top up, the interest rate will based on the top up loan amount. Hence if less than Rm200k, the rate usually would be bad. For the bank to revise your existing rate to current rate, it is subjective, they would look at your debt payment and your profile before they adjust it.

2. How bad was the rate for your existing loan though?

Dear cclay,

6.85-2.3= 4.55%.

Still not that terrible. haha

1. alright, if you need any help do contact me. I'm at your service

Dear Syd G,

1. Nowadays, most of the banks offer flexi loan, semi and full flexi. It's not by default, it is by choices. You need to inform your banker which package you are opting for, given that you have been informed well of both pros and Cons.



2. If you wish to go for full flexi, most of the banks offer such package for conventional loan, for islamic loan, most of the bank offer only semi flexi.

3. What's your objective of refinancing? Lower rate or to cash out purposes?

Dear,

1. BNM will receive the letter, howeverthey would only update on the 10th for the ccris. lets say you settled the debt on january, feb 10th your ccris will be renewed and updated. If you settled on february, march 10th would only be renewed.

2. If you need any assistance in applying for loan, don't mind seeking for my service, I don't charge for residential loan.