I am in the midst of refinancing my home. When I re-read my existing loan agreement, I notice there is another term under lock in period that reads like this.

"Notwithstanding the above, for properties under construction and if you obtain refinancing from another bank/financier, the lock-in period shall be 5 years whereby for the first 3 years, the reduction in Ibra' shall be 3% of the original financing amount and for the next 2 years, the reduction in Ibra shall be 2% of the original financing amount".

I'm in my fourth year since the money disbursed and I started repaying. I bought the property from subsale, it is already completed when I bought it. If I refinance now, am I subjected to any penalty?

Any sifu please enlighten me...

yes there will be penalty if refinance during lock in period since you're lock in 5 year and now is only the fourth year.

I am not sure if this is the right thread to ask but I am actually planning to renovate my 20 years old home but would like to re-mortgage the house to cover the renovation house. The loan for the house has already settle but the problem is that, the house is under my parents name and they would not be able to get a loan under their name as they have retired.
Thus, I would like to know if I should speak to a bank officer directly to get a quote for the loan plus the cost for the name transfer or go to a lawyer for the name transfer first and then only approach a bank for the re-mortgage loan?

if I interpret it using coding (I'm a programmer), both conditions must be true for the 5 year lock in period to be effective. I guess interpretation of the law is different.

Hello, it is possible to sell your house before mortgage tenure ends right. So, how do bank calculate the amount they will give us when we sell the house before tenure ends but after lock in period?

For example, house is 100k, mortgage is 90k. Tenure is 35 years. Say if after 5 years, the house is 200k, but you only paid a small amount. So how do banks calculate the amount theyll pay us. Does only the principal counts and if not, is the interest based on 5 years or 35 years? Please help. Thank you.

This post has been edited by Cubed1437: Mar 15 2015, 12:58 PM

When you pay your monthly instalment, during the earlier stage of repayment, a big chunk goes into the interest while only a small portion will be paying the principal, which is the loan amount you get. So after 5 years, look at your loan statement for the outstanding loan amount, let's say 86k. If you sell at 200k, 86k will be paid to your existing financier for redemption and the balance goes to you.

It's not necessary to transfer the name to you in order to re-mortgage, of course, you still can do the transfer if you want it.

Some banks do accept third party charge where the property under your parents name and your parent and you become the borrower.

Note that re-mortgage to cash out the banks will calculate your Debt Serving Ratio / commitment level using 10 years, or you can go for AIA home loan which they will use full tenure if not mistaken.

So to confirm, only the principal is counted at the 5th year right? This means my profit would be 200k - 86k - (whatever I pay for 5 years) - downpayment - fees/costs. Is that correct? And does this apply to both islamic and conventional loans?

This post has been edited by Cubed1437: Mar 15 2015, 11:28 PM

Thanks for the answer

what is the procedure to do early settlement of housing loan?

pay up all outstanding amount to bank or go thru lawyer and get them to setttle?

You can pay off the loan without the need for a lawyer. Ask for settlement sum and give the required notice.

Yes just directly to the bank and once settle request settlement letter from bank

Wat is the latest loan rate?

This post has been edited by nxtpg: Mar 18 2015, 08:17 AM

You need to ask for redemption statement from the bank to ascertain the outstanding sum to be repaid. You may need a lawyer too to get the necessary documention done, e.g. discharge of charge (eg property tsken as collateral).

Hi there,

are there any Banks that provide graduated payment housing loans?

EDIT: are graduated payment for housing loan still offered by banks?

Ty in advance.

This post has been edited by junelim45: Mar 19 2015, 09:12 AM

so in the end still need a lawyer to do a discharge? redemption from bank alone is not enough in this case

Any OCBC banker? Please PM...

property price RM350k.

No broker/outsource. Thanks

Pls contact me at 017-2674877 thx

May I know is there any 3rd party loan nowadays?

It depends. If your loan is secured against property, then a lawyer is needed to discharge the charge. If your loan is unsecured or says secured by other security (eg cash), then no need to engage lawyer.