Cues taken from boon

This is strictly a DISCUSSION / Q & A thread about Mortgage

Strictly NO PROMOTION and NO SPAM or NO ONE-LINER (e.g. You got PM).

General board rules and regulations applies.

First violation = Warn
Subsequent violation = Suspension

Hello everyone, as per in the previous thread, this thread is open for questions related to Mortgages in any way and form. No question is too stupid, be it finding out your loan eligibility, questions regarding to CCRIS and CTOS, banking products, MRTA/MLTA, etc. everything is welcome!

Please use it responsibly! This is not our personal sales thread! And although I am a mortgage broker, I enjoy answering any questions related to mortgage in my free time. For examples on the types of questions that are being asked and answered, you can refer to the link I provided above.

Happy discussing!

This post has been edited by wild_card_my: Dec 15 2014, 08:45 AM

hi wild card.
there's always a rumoured that islamic loan is hard to pay off and incurred a lot of additional charges.
can you let us know the clear and main differences of conventional loans against islamic loans?

and also differences between conventional versus semi-flexi and full flexi loans.

thanks.

There are a number of Islamic loans in Malaysia such as the Murabahah and BBA which are based on a cost plus a marked up profit for the banks. These are usually fixed rates of which I would not cover (because it is an older product and I discourage my clients from taking them due to the unprofitability of it)

1. As for the differences between the conventional and islamic:



I will make an additional note here, Islamic loans (MM) can repaid off just like conventional reducing balance loans. In that the interest is calculated on a daily basis and are not added into the final settlement price. The amount that needs to be settled if you need to sell, refinance, or early settle the property is the outstanding balance amount.

2. As for conventional (and Islamic) flexi vs semi-flexi... I am in the opinion that if you do not run a business, or that your income does not fluctuate, that you should opt for the fee-less semi-flexi.

a) A full-flexi account comes with a cost of about RM10 a month (more or less depending on the bank) for the use of the facility. With a full-flexi account, you get to save the daily payable interest (of your housing loan) for every Ringgit that you put into the account. I mentioned business because businesses require liquidity and may very well benefit from reducing their HL interest by depositing a sum of money into their accounts, while having the liquidity to withdraw it when they need to. The liquidity comes in the form of an ATM card or a linked CASA account to the housing loan.

Example: You have a shop that is opened Monday to Satuday, rest on Sunday. On Saturday, you deposit all your proceeds of the week into the flexi account, on Sunday, you would save [(your-HL-interest-rate)/365]*AmountDeposited worth of interest. On Monday, you withdraw the money to run your business.

b) But for those who earn a fixed salary, with the occasional bonuses or two in a year, they are better off with the semi-flexi due to the lack of flexi-fees. Do note that semi-flexi account also reduces the capital outstanding (hence reducing the payable interest), the only drawback is its a little inconvenient to deposit and withdraw the payments since you don't have any ATM card or linked-CASA account to do such transactions - you need to deposit a check and note it as "for capital repayment" AND go to the bank in person to ask for a withdrawal, and there is a one-time cost of RM10 to RM40 (depending on the banks) for each withdrawal.

But if you only do this once or twice in a year, or only when you need to buy the occasional big-ticket items, it's not inconvenient and you would save the full-flexi account fees.

- Faiz Azmi (+6 013 369 3993)

This post has been edited by wild_card_my: Dec 11 2014, 01:35 PM

faiz, tell me more about islamic loan. it sounds good on paper. in actual fact, it is better than conventional loan in every aspects

is there any drawbacks / disadvantage of islamic loan vs conventional loan?

I need to run now, but the only actual disadvantage of an Islamic loan over the conventional are the needs for extra documentations to complete the memorandum of transfer. Each bank has a different sets of "Extra" documentations required for an Islamic loan over conventional, and the differences between the 2 vary between RM500 to RM1000 depending on the loan amount from my experience. The differences are getting smaller though, OCBC Al Amin for example only requires 1 or 2 extra documentation, while this other Malaysian bank requires like 4 or 5 extra documentations. These documentations may add costs to the MOT. I really need to check with the lawyers to confirm, they deal with the documentations on a daily basis, while as for myself, my job is to get the clients' the mortages they need, and once they have signed the papers, I have no choice but to pass them over to the lawyers (due to P&C laws, I cannot even check up on their documentation progress, I have no rights to know).

Other than that I can't really think of any (so far, not saying that there isn't any) since the MM and conventional loans are similar in almost every way. Except that the MM has no lock-in periods.

Edit: As of now, out of the 5 banks that I could do, only Alliance could do Islamic full-flexi, while the rest (OCBC AMBANK, MAYBANK, HLBB) can only do Islamic semi-flexi. But you know, I have explained full vs semi flexi above.

Maybe you all can ask me about the specifics (for example, interest rate calculation, interest rate, tenure, etc -which ive answered above any-) on whether or not there are differences in those areas, then I could go about it?

This post has been edited by wild_card_my: Dec 11 2014, 03:40 PM

The most important thing that Islamic Housing Loan needs to clarify is the concept of Early Settlement.

The Earlier / First Generations of Islamic Loan did not allow for Early Settlement and the Borrower had to pay the Full Amount even if the Loan was settled early

There was a case that even went to Court and the Courts ruled in favour of the Borrower.

Since then, I was told that Islamic Loans was changed to cater for Early Settlement but how is it in practise, is it the same as a Conventional Loan, perhaps our Consultants here can clarify

You are correct. Im in my 20s, so when I started in this business, the BBA and Mudhrabah -fixed rate, interest/profit already included in the SELLING PRICE, and you need to settle that amount to be released of the buy-and-sell agreement- was already out of fashion.

When I started, the Musharakah Mutanaqisah (MM) have just been introduced, and it mimics the conventional loan concept of calculating the interest based on a reducing balance.

As such, for all intents and purposes, the Islamic loans (MM only, not BBA and Mudharabah) of today are similar to conventional loans. Most of my non-Muslim clients opted for Islamic loans after my 2 hour explanation (i love explaining things to my clients) about the similarities plus the added benefits of no lock-in periods.

edit: Now you can early settle and only pay the outstanding balance, just like conventional loans. So when people ask me what the differences are... it's very difficult to find other than the nitty gritty ones. Maybe if you all ask about the specific areas I can try to clarify

p/s I lied, I'm leaving at 5pm.. but still working

This post has been edited by wild_card_my: Dec 11 2014, 04:24 PM

Maybe the old ones that I am not familiar with, but the newer ones like the Musharakah Mutanaqisah Islamic loans by OCBC Al-Amin does show the so-called "real outstanding". Other Islamic loans from other banks that adopt the Musharakah Mutanaqisah system does the same thing. It's called outstanding balance by the way.

Posted below is an account information that i have the permission and rights to post, and if you look closely at the bottom, the outstanding balance is clearly spelled out. This is the amount that has to be paid back to the bank if the client needs to settle the loan.

Due to the competitive landscape, more innovative products with different features introduced. There is conventional full flexi loan without the condition of lock in period and no cost incurred for withdrawal of excess fund.

Whatever advantage one product has, the competitor will try to come out sth with better features. The gap is closer.

Forgive me but I am not too aware of any conventional loan products that do not come with the lock-in period clause. Can you share the banks that are offering this packages? I only carry 5 banks, but each bank has their main products that I focus on, so I can't be expected to be aware of all products. =)

I can say with confidence though, that there are more (if not all) islamic loans that do not come with any lock-in periods compared to the conventional ones.

Agree, but such good terms are only offered to selective customers.

I got friends that was offered full flexi with no lock in from both RHB and CIMB.

The Loan was in excess of RM1.5 mln+++

Rate was BLR less > 2.5x%

I see so these are the packages offered to priority or HNW customers. Im not surprised then that their officers would go the extra mile to secure the loans for their customer.

The Islamic loans on the other hand, has been sanctioned by BNM (I will find the source, currently on mobile) to remove any unfair clauses like te lock-in periods from being included in their loan agreements. The conventional counterpart is free to include or exclude the clause; thus as far as I know and in general, it is safe to say that most if not all conventional loans are riddled with lock-in period clause

This post has been edited by wild_card_my: Dec 12 2014, 08:49 AM

I'm not too sure what is the threshold the bank sets to be entitled for full flexi with no lock in. Probably it's for HNW or high value transaction at this stage. But since the market is competitive, I foresee the terms could be relaxed further and benefits more consumers one day in the future. This is good for consumers.

Definitely. Even without the BNM doing the same sanctions on conventional loans to remove the lock-in clauses, eventually they would do something anyways since it seems like the islamic loans are more attractive to the customers. I can only speak based on anecdotal experience: even my non-Muslim customers opt for Islamic loans after I've explained the differences between the two.

The more competetive these banks are, the better for us consumers.

Hi, good day to you. I have some questions regarding my intention to refinance my house. I currently own 3 houses which I intend to refinance one of my houses, was told by the officer that in order for me to get 90%, I have to prove that the 3rd house I purchase is with 70% loan amount, is this true? I'm doing the refinancing with the same bank, usually how long it takes for the bank to disburse the money?

AFAIK, BNM rules state that the max LTV for the 3rd and subsequent Loan is 70%. Based on this, it does not matter what is the LTV of the First and Second HL, whether its 90% of even 50%.

Also, it does not matter what is the remaining principal amount, you may have only 10% left for the first 2 HL, the 3rd will be capped at 70%

But lets wait for our other sifus here to explain. I could be wrong.

Hi, would like to ask if we can do payment by biweekly instead of monthly to reduce daily interest rate ? Do we need to inform bank in advance / personal go to branch office ? Currently using OCBC semi flexi loan . Would be happy to get some information from all sifu above... Normally payment is via online

thanks for the explanation, appreciate it very much. Btw do you have any idea usually how long it takes for the bank to disburse the money after approval of refinancing?

The BNM ruling as practiced today, refer to the dates the loans are taken. 1st and 2nd property can be finance at 90% but it doesnt matter if you did not finance it at 90%, because the 3rd property will only be capped at 70%!

As such, to prove this to the new bank, all you need to do is to make them a copy of all your bank loans. The 1st and 2nd property (according to the date of the LO) can be refinanced to a maximum of 90%, while the 3rd property is now limited to 70%.

You got this right.

It depends on the bank, but I can confidently speak for OCBC and OCBC Al Amin... (eh.. which is your bank). The interest for this loan is based on daily-rest, that means the moment you make an additional payment (called advanced payment by OCBC), you would already save the interest for the next day onwards, for the amount that you paid in advance.

edit: But yo yo yo, please do call the bank to confirm ya. I cannot be liable for any misinformation here. I am confident of it though, just that it is your responsibility to confirm this with OCBC call center.

So yes, if you want to save the interest of 4.4% (whatever you housing loan rates are) on a daily basis, do go ahead and pay in advance. Every interest that you paid in advanced, is money saved! In essence, this is WAY BETTER than putting your money in FD Also, all advance payment can be deducted automatically if you do not pay (or not able to pay) the monthly installment, say in the event where you go to vacation or something

- Faiz Azmi (+6 013 369 3993)

This post has been edited by wild_card_my: Dec 12 2014, 11:48 AM

This question, we will need our sifu wild_card_my

It depends on a lot of factors, from 1.5 months to 4 months based on my experience.

Factors include:

1. if the property is Master vs Strata/individual more paperwork to do for the lawyer
2. If the land is leasehold vs free hold, consent matters
3. The general speed of the lawyers themselves
4. The banks themselves, sometimes they can be very very slow
5. Valuers, just like lawyers work at their own speed

Most importantly is that you get a lawyer that the banker/broker knows so that you can ask your broker to push the lawyers. If you try to push the lawyers yourself, they will bullshit you with this and that things that you also dont understand so you cant argue with them Lawyers can, on occasions be full of shit

This post has been edited by wild_card_my: Dec 12 2014, 12:03 PM

Thanks Sifu !. Mine is OCBC ( not the OCBC Al Amin)

Same thing for both banks! You can do advance repayment and it would reduce the interest from the next day.

edit: eh but call the bank to confirm ya, because I do not have your LO on hand so I cant read or spell out the terms for you. But I know in general, the newer OCBC and OCBC AlAmin products can do this.

This post has been edited by wild_card_my: Dec 12 2014, 01:13 PM

hi would like to ask any good OD package (pledge the hse) excluding the 1% committment fee if more than rm250k TQ?

I would save some of your time searching by telling you that AMbank, OCBC, Maybank, Alliance and HLBB (banks under our firm's panel) that all these banks got that 1% commitment fee for unused OD (or standby OD) that is more than RM250k.

So you can start your search at other banks now

This 1% Commitment Fee is imposed by almost all Banks in MY (to add on to wild_card list is RHB, Public, Affin)

Even for HNW the Banks also charge the 1% Commitment Fee, for Super HNW I am not sure but my contacts with very big facilities (in the hundreds of millions) also get charged 1% Commitment Fee for their undrawn OD

i think it is under BNM rules..

if you want to get 500k OD unless you get one OD RM240k & another RM240k so n so

any other way to get the cheaper standby fund by pledging the house?

This post has been edited by asiatrader98: Dec 12 2014, 03:01 PM

Term loan with a full-flexi account could be a good idea too, depending on your situation. The pros and cons are clear though so I will not spell it out...

unless someone is asking

Recently bought an Auction House in Cheras, RM242k.

This is my second house, as the first house loan is 606k (still in construction, released loan of 110k atm), and have a car loan @ RM900 / month, 3 years to go.

Net income @ RM5.3k, any possibility to get loan ? or any suggestion?

Thanks.

Hi, what is your original loan amount for the car ya? Are you looking at 90% MOF for the auction house? What is your gross income (including fixed allowances)? Any variable income such as bonus and commissions (what is the average commissions in the past 6 months?)

This post has been edited by wild_card_my: Dec 13 2014, 09:43 AM

Bro., what is the stage of your auction property.

For auction, normally u must be sure u can get loan before u even want to begin, cos if u fail to get loan, whatever monies u pay is burn.

Assuming your RM606K loan is about 30 yrs, the instalment should be about RM2.8K and plus your car, your total monthly loan instalment is close to RM3.6K

This is already almost 50% of your net pay.

Plus the new loan instalment of say just 1k, total will be close to RM4.3K to RM4.5K which is like 80% to 90% of your net pay.

This type of DSR is too high as u will have nothing left to eat.

Of course u can argue that in 3 years time, your car loan would be fully paid, salary will increase and perhaps the auction.house will be rented out.

But banks may give loan based on.worse case scenario.

But let's see what wild card says since he is the sifu. I am just a pessimistic borrower.

Hope your Loan and purchase will go through.

Where dis u buy the auction property. Can share some details for our learning.

This post has been edited by cfa28: Dec 13 2014, 10:09 AM

I, too, was wondering at what stage was he in for the procurement of this house. Has he paid the deposit yet? Those things you can't get back.

I didnt ask more because I am in the middle of replying to someone (with pictures and all, edit here and there) so got a little busy.

Already bid successfully and paid 5% reserved price, just that might joint loan with others if that's the only option.

Initial car loan amount is 60k, 7 years loan at 3.2%.

House loan is at 40 years, 4.25%.

Bonus is 13th salary, so another 5.3k there.

what is your gross income before you deduct any of your statutory deductions?

Should be RM65k this year.

based on my calculations, you are overburdened already. No new loans can be taken without letting go some of them. The installments for the 1st house will be taken in as a full amount by the other banks.

No choice but to rope other people into the loan.

Thx for the calculation, just another question, would it be possible to get my dad in as guarantor? He is 60, with annual tax filling 100k? Without any commitment.

Hi

Property RM 892,000

Net income Rm 7800

Debt Total RM 2000

Am I able to purchase this property?

Any banker to introduce for guidance and service

Thanks and regard everyone. laugh.gif

That can't be your annual gross salary, if monthly net is already 5.3k

For net 5.3k your monthly gross should be around 6.2k = 80k annual gross with a 13th month salary

Without any commitment would be rather difficult, as some banks would like the guarantor to have some form of repayment records. In fact, banks like OCBC are only keen to allow guarantors for those who currently have 2 housing loans (with any banks, but they must appear in the CCRIS or proven through loan statements)

Most banks in fact, are not too keen on guarantorship. Do you have anyone else that are able to join-loan with you?

Can you break down the debt? Please tell me the outstanding amount of the credit cards as well as the ORIGINAL LOAN AMOUNT of your debts

Also, what is your GROSS INCOME before deducting statutory deductions?

Is this going to be your 1st, 2nd, or 3rd property and beyond?

This is true, I was confused at first too. But at that point I was like... ok, let's just calculate first and see. I mean, I asked for the gross salary twice already... :|

Cz salary increment only start on April, and bonus is on Jan, the 5.3k is gross income, not net. sorry for confusion. Since the current house finished loan payment, i think few years back,so my dad does not have any commitment, other than being my car loan guarantor. If my dad is not a choice, then will have to join with spouse instead.

Bro, banks are not in favour of Guarantor route anymore, unless your Guarantor is Super Rich.

Joint loan with your spouse is your better bet, bear in mind, auction property follows certain time constraints that the successful purchaser must follow, else u lose your deposit

Both;

1. 80% of the bonuses received in the past 12 months will be divided into 12 months will be divided into 12 to get the monthly contribution of the income.
2. The same goes with commission earners, 80% commission earned in the past 12 months will be divided into 12 to get the monthly contribution of the income.

edit: Different banks do have different ways of calculating or including bonuses, the banks with highest DSR limit such as OCBC (90%) and HLBB (85%) do consider bonus repayments as part of the income calculation.

Spouse would be best in your case. Do let me know the same details I requested for your spouse if you need me to calculate the borrowing power.


This is correct, recently, I have only gotten OCBC/AlAmin approved for applicants using a guarantor, but even the guarantor is required to have 2 current housing loans; I dont know their reasoning, but I can venture a guess that they only want genuine guarantor (as opposed to I guarantor for you, you guarantor for me type of setup)

Really wished he had asked about his borrowing power before paying for the house deposit though. His power is currently in the negative

This post has been edited by wild_card_my: Dec 14 2014, 03:37 AM

I also wonder why. I loan should be enough to confirm the guarantor's credit history / repayment record.

Like I stipulated above, they want to avoid double dipping of guarantorship.

For example, there is a couple, A and B



While in actual fact, if all they did was to join loans, they can probably only get 2 houses. But now they have 4 houses... how? Because they double-dipped the guarantorship. So why does OCBC need someone with at least 2 housing loans to be a guarantor? Well, as above, B cannot become A's guarantor without having first purchased 2 houses. And vice versa.

It is one of OCBC's (stipulated by myself) way to prevent people from gaming the system. Fact of the matter is, banks are not too keen about guarantorship anymore because the guarantor's name is not included into the loan (so the loan name would not be in his CCRIS), and since the commitment of the guarantor is not included into the calculation, and that the reason most applicant needs a guarantor is the fact that he himself couldn't afford to pay the installment for the house loan he is applying too... we can all see why the bank may have doubts if the guarantor would help in any way. Remember, banks give you loan with your promise to pay it back with interest, if you can't pay it back... why would they lend you maney~~~?

This post has been edited by wild_card_my: Dec 14 2014, 09:27 AM

Hi all sifu,

Would like to know, max loan amount.

1st prop KV
Gross income RM2,500 (fresh)
Debt free (ptptn paid off, no other loan)
Down payment RM200,000 (join owner mom)
Credit history - credit card, pay in full every month

Any advice is much appreciated.

KV? you mean JV? Or you mean JL (joint-loan)? What is it~~~~? Sorry for asking, getting a little confused here...

If what you meant was JL, what is the loan amount of the first property ya?

Location klang valley

Morning everyone, just want to have some assessment on my current cash flow.

Income
On average about 4200 (basic+fixed allowance+commission)
Rental income 1600

Expense
Mortgage 1300
CC + PL installment 1400

I am thinking to refinance my property (Owe bank 275K, current valuation 390K) and use the money to get a 2nd house (500K maybe). Is it possible with these figures?

Bank will take PTPTN and insurance when calculating DSR?

TQ

This post has been edited by B u B u: Dec 14 2014, 10:11 AM

Plox, some info on your mum and proposed mechanism.

Is your mum still working.

Are u planning to take joint loan


If based on your sole income of RM2.5K, the Loan is rather small, but you can stretch to max 35 yrs

Do also bear in mind that you will not be able to take a car loan for many years until your salary increase substantially.

Mom is retired gov servant.

The loan will be under my sole name, not joint.
Looking for prop around 400k
35 years loan, monthly will be...?

Lrt works fine, car not needed yet.

How likely they will approve 200k loan?

Lets say i bought a property, with joint names mortgage, but only me paying as the 2nd borrower only to get loan approved.

Now, i want to refinance the loan and the 2nd borrower agree to let me have only my own name on the land title...

so, the question now is

1. Do i need to pay for any stamp duty for the land? or something like that...

2. Or how should i proceed for that?
- Remove 2nd borrow name from loan
- Refinance

wild_card_my

This post has been edited by Petro-Canada: Dec 14 2014, 12:14 PM

Notwithstanding the fact that guarantor is just a guarantor, it bears the same liabilities as the borrower. Guarantor name does appear in his / her CCRIS to show his guarantee commitment. Further, bank does include the guarantor in the (combined) DSR calculation. So I don't see the point of having 2 loans as pre-requisite to be a guarantor.

Hello, can you tell me the ORIGINAL LOAN AMOUNT of the PL, Mortgage, and HP (if any)?

Also, what is the OUTSTANDING AMOUNT for the CC?

PTPTN and Insurance premium, as well as other non-banking related commitments (TNB, Syabas, Along, MARA, etc.) do not factor in the calculation for commitments

edit: Eh......!!! PTPTN recently have been added into CCRIS records... I... need to read up on this a bit.

According to this, 500k PTPTN borrowers would have their PTPTN loans added into the CCRIS. How to calculate these loans as commitment... I admit that this is still quite new and I haven't gotten my hands on this information. Will update you all when I do. But if the PTPTN is less than RM50k, shouldn't really affect the loan application too much, I am saying this based on if you were to calculate the PTPTN loans as personal loans.

http://www.utusan.com.my/berita/nasional/s...ai-2015-1.21095

Since you mentioned that your mom would be putting a downpayment of about RM200k... With you as the sole borrower, then according to my calculations you may actually get the loan. However, everything will be subject to the credit controller's approval. I'd be happy to work with you in procuring the loan.

Do note that since you do not have any repayment records (from the banks), typically your loan would only be approved with a margin of financing (MOF) of 80% or below. However, since your mom is already paying half the price of the property, your margin of financing is already at 50%.



Yes, I would recommend that you remove the name of the second borrower since you wish to remove him/her name from the title.

1. Depending on the bank, you could simply purchase the portion of the second borrower's outstanding (Current outstanding divided by two)

2. In the event that bank does not allow you to do that, you could simply refinance the whole loan package under your name alone, while at the same time changing the names on the title; whether or not you will be taking the cash-out depends on your choice.

Which bank is the property encumbered to? Is it still under Master title or already broken to Individual/Strata title?

Actually, whether or not the loan details is captured in the guarantor's CCRIS depends on the bank. In some cases, the bank insist that guarantor also acts as the joint-borrower, in this case, the information would be captured in the "guarantor's" CCRIS.

However, more banks that I know of (the ones that I do) do not capture the loan information in the guarantor's CCRIS, as such, he or she is free to be the guarantor for many many many loan applications~!

So if... well like I said, this is just me speculating without a straight answer from my Relationship Managers, that the reason why they need the guarantor to have at least 2 housing loans is to make sure he is a genuine guarantor that is not a guarantor just for the sake of the 2 applicant applying but the loan only appear under 1 person's name...

Very difficult to explain, I also just speculate only at this point.


Faiz Azmi +6 013 369 3993

This post has been edited by wild_card_my: Dec 14 2014, 02:54 PM

Would I get a better rate if my mom pledge her existing house valued about same amount as collateral to secure the loan? Since she is a joint owner of the house.

Credit card repayment or monthly FD placement qualify as repayment record?

Thanks really appreciate the help.

Not necessarily, the banks' rate is already set at the board rate. I understand that she is the joint-owner of the house, that means there will be your name and your mom's name on the SPA correct?

However, the loan application will be only under your name correct? This means the bank will only look at your income and commitments.

And as I have calculated above, your can probably get the loan if all you are applying is less than RM220k (the house is RM400k and your mom is already paying RM200k as the downpayment correct?)

All looks good, my number is at my sig below if you need to contact me directly.

Hi
This questions is half share purchase half refinance !
interesting as it comes with different scenario.

May I know if your property status whether unencumbered/encumbered ?

A and B joint name

If lets say still have outstanding of RM100,000 to your existing bank, you guys have to decide how to allocated the outstanding, either A or B paid separately or A paid all by himself, as this will derives different outcome.

1)
Property Market value Rm600,000
Property outstanding Rm100,000 (redemption)

A decide bare all the outstanding debt due to he his getting the house SPA under his name only.

Rm300,000 x 0.9 = RM270,000

Rm270,000 (Purchase property)
-Rm100,000 (Redemption)
Term loan Rm170,000 (cash out)

If decide to bare half

Rm220,000 (purchase property)
-Rm100,000 (Redemption)
TermLoan RM120,000 (cash out)

2) Or Just work on Memorandum of transfer


4) If it's unencumbered
Just visit your friendly lawyer and have him/her work on new SPA agreement transfering your name.

5) This half share purchase and half share refinance usually comes with a cost of stamp duty.

6) You can decide to do a proper normal buy sales procedure, but this will charge extra stamp duty on you for the full amount RM600K

Happy Loan !

This post has been edited by Aik_FEI: Dec 14 2014, 10:45 PM

Yeah wildcard You are right, Guarantor ccris will be clean from the housing loan he/she guaranteed.

And at any moment when the borrower default heavily on the housing loan, this will then reflect into the guarantor ccriss, when only main borrower default heavily.

and to continue speculate with @wild_card_my MY reason behind this would be to create more window of chances for property investor to support financially on family members housing loan, since he has been hit my a slash 70%, so he is given another chance to invest, but without his name stated in the SPA !

Sorry, can't agree with you for the points raised above.

Running up close to the GST implementaion in April, business has increased as people are trying to avoid paying the GST, although, in my opinion, the price is the price and it will correct itself before or after the GST.

But moving beyond that, loan application will only get more stringent as banks are now being more careful about lending their monies. However, the would be borrowers shouldn't be discouraged as the banks have a full set of guidelines that we can follow; they spell out the requirements such as the types of income, documents, as well as types of properties. If you qualify through their requirements, there is little reason for them not to give you the loans because they need to create a balance between getting the right customers as well as doing business.

How do they do it:

a. Demand a full, complete, fault-less to a point set of documents from the customers
b. Be more particular of the properties that they would finance. A number of my applications were rejected due to the negative factors of the properties; the same negative factors that would not have mattered just 3 years ago (since I financed a number of properties from the same area from the same banks)

A note: BNM being more and more stringent is good for the industry. It would weed out those who are not serious when providing the service, and to avoid a property bubble (and burst); thus providing a nice and stable industry. I am in this for the long run, a bubble that may burst is more detrimental than a nice and steady growth.

This is a good question, ill try and keep it short. And keep in mind that each bank has it's own terms and policies, I can only speak on behalf of the few (5 banks) that my firm is empanneled to.

There are many types of CTOS disputes, but for the purpose of explaining, Ill limit it to just 2 types of disputes:

1. Dispute with general companies like: telcos (used to be that telcos report to CTOS, but now they have their own system in place), personal lenders like AEON/Singer/CourtsMmoth, gyms, majlis perbandara, TNB, Syabas, etc.

So when it comes to disputes with these general companies, all you need to do is to settle the disputed amount, and get the settlement letter from those companies to show that you have settled the account. During the application, print out the CTOS record, along with the settlement letter for your banker/broker to include with the application.

2. Dispute with banks (!!!): Late interest payments, credit card outstanding that you have not settled, for amount below RM30k, hire-purchase balance, etc.

CTOS dispute with banks carry a lot more weight. Each bank would have different policies, but with OCBC/AlAmin for example, any CTOS dispute (with another bank) below RM2k is ok; as long as you settle the amount and prove it with a letter of settlement, they may (!!!) consider the matter closed, and proceed with processing your loan applications.

But if the amount is higher than RM2k, OCBC/AlAmin would only consider processing your loan application if the settlement has been done after more than 1 year ago. So if you are planning to buy a property, and have CTOS dispute with banks, you better settle it today because the longer you wait, the more time you need for the cool-down period to end.

Keep note that each bank has different policies when it comes to CTOS disputes, including the cool-down period and minimum limit for the dispute to be seriously affecting your application. In short, to answer your question, CTOS disputes with general companies don't affect you application as much as CTOS disputes with banks.

Also, everyone can call me Faiz Azmi, or Faiz if you consider me a personal friend. Azmi is my father's name

I have never received such messages, but I can imagine that what they would be doing is to consolidate all your loans into 1 mortgage account, with the house as collateral. Essentially they are asking you to let them help you refinance your house. They would also probably extend the tenure of the mortgage to the maximum possible tenure of 35 years or until you reach the age of 70.

If that is the case, then "I also specialize in this debt consolidation matter". Refinancing is a valid financial maneuver, but you should only do it if you know what you are doing. Start asking questions if you need to know more - should you do it? In what ways will it benefit you? Will it affect my future borrowing power?

Are they legal? They are probably bankers or brokers such as myself. Offering prospects to refinance their house is legal, but the method they used to market their services may actually breach the Personal Data Protection Act (PDPA). You won't see me messaging the public about these "offers". It's just not my style...

As for CTOS/CRIS, if what they do is to refinance and consolidate all your debts to one mortgage account, then the effect of CCRIS/CTOS is just like if you were to apply from the banks/(or myself) for a refinancing. in fact, it may actually be better to consolidate your account (such as CC, HP, PL) into one mortgage account due to the lower interest.

Question: Refinancing from a bank on my house (fully paid). Do I need to give the original house title to lawyer when signing the loan agreement?

If during the loan application, you declared that the property to have its own individual title (As opposed to Master title), the bank would like to get their hands on that so they could charge the property (and hence, the original individual title) under their care.

Asking this on behalf of my friend.

Nett income about 3100
Only commitment is car 900/mth
Not many cash in savings account, but RM100K FD.

Eligible to purchase a 380K house @ 90% MOF?

TQ

This post has been edited by B u B u: Dec 16 2014, 09:55 PM

Hello,

1. Can you give me the friend's GROSS INCOME? That their basic + fixed allowance.

2. How much is the original loan amount for the car ya?

3. Have he/she received any dividends on the FD in the past 1 year?

[quote=wild_card_my,Dec 16 2014, 10:09 PM]
Asking this on behalf of my friend.

Nett income about 3100
Only commitment is car 900/mth
Not many cash in savings account, but RM100K FD.

Eligible to purchase a 380K house @ 90% MOF?

TQ

[/quote]
Hello,

1. Can you give me the friend's GROSS INCOME? That their basic + fixed allowance.

2. How much is the original loan amount for the car ya?

3. Have he/she received any dividends on the FD in the past 1 year?

[/quote]


Hi


1. Basic 3200, fixed allowance 300
2. 900 @ 12/108
3. The FD has been there for multiple years (joint name with mother)

TQ

The friend is rather over burdened. But it's do-able. Cutting it close though, since if the net income falls below RM3000 then this is not possible. ANy bank for any applicant that earns less than RM3000 a month would get a DSR of just 60%



This post has been edited by wild_card_my: Dec 16 2014, 10:26 PM

Does bonus help? Average 3 months.

Yes, it does help. Should be around this much. Everything is subject to approval by the credit controllers ok:

No. Not that I know of.

Perhaps. But I cannot speak for banks that I do not represent, nor the products that I am not well versed in for fear of spreading misinformation.

This post has been edited by wild_card_my: Dec 16 2014, 11:50 PM

Hi,
If bank statement income amount not tally with payslip amount, then how? can apply loan?

It depends. If you can give good reasons, then the credit controller may consider it. Especially if the amount is very small. Like for some company, claims are paid in cash, not banked in. So there will be discrepencies between the 2 documents (pay slip VS bank statement)

On the other hand, you could also use these combination of docs: pay slip (With EPF deduction) that tally with the latest EPF statement



Faiz +6 013 369 3993

thanks Faiz...i will try it.

Hi Faiz,

I am 34, net income RM8050, no bonus/allowance. No outstanding CC / car loan / personal loan (unfortunately no FD too). CCRIS record is perfect, no late payment.

I own a DSL with the original loan amount at RM268k (RM261k for 90% MOF of RM290k purchase price, RM7k for MRTA), remaining loan amount at RM253k. It is my only property and the market value is around RM700k.

Now I plan to refinance it to obtain maximum amount of cash, prefer zero moving cost with maximum loan tenure & DSR. Can you help me to calculate how much I can get and how much is the instalments? The new rule for refinancing introduced by bank negara has confused me. Thank you.

Hello, can you share with me your GROSS INCOME? That is your income from the payslip (basic + fixed allowance)... don't deduct anything. I will calculate your eligibility from there.

Keep note that the new rule is only used in terms of calculating whether or not you are eligible for the cash-out refinancing. However, once you do get the offer letter, the repayment will still be based on 35 years. I made a typical calculation, RM630k, for 35 years, and below is the result. Of course your case would be different since the interest rate would differ a bit, but it wont get too far off from what calculated.

Loan amount - RM630,000.00
Loan tenure (years) - 35
Interest rate - 4.50%
Monthly installment - RM2,984.71
Total payment over loan tenure - RM1,253,576.38

Faiz +6 013 369 3993

This post has been edited by wild_card_my: Dec 17 2014, 05:59 PM

Many banks share the same set of valuers, overlapping their empaneled valuer list with other banks. If other banks can't get their valuers to match the asking price, the same may happen with OCBC valuers too.

Hi sifus,

I was told that to refinance a residential property using a conventional loan, the maximum tenure is 10 years.

Is this true?

Keep note that the new 10-year refinancing rule is only used in terms of calculating whether or not you are eligible for the cash-out refinancing. However, once you do get the offer letter, the repayment will still be based on 35 years.

This applies to both conventional and islamic loans.

Thanks.

If you need to refinance, I can help you with that. My services are free, I get my commissions from the banks. Have a good day.

am contemplating to refinance.
any free moving cost deal around?
and i do mean absolutely zero cost.

This post has been edited by kochin: Dec 18 2014, 02:29 PM

Currently only HSBC that I know of that can do a completely free moving cost. However, the interest rates are also a little higher. May I introduce my HSBC banker to you? And at the same time I do recommend that you try at least 2 other banks that offer financing of the moving cost.

Once you do get all 3 LOs, you can do the comparison yourself which one to sign.

Of course, I can help arrange everything, from the HSBC banker to application to 2 other banks under my firm's own panel.

Faiz Azmi +6 013 369 3993

what happen if i accept the refinancing but subsequently dumps back the entire fund into the account?
i just want cash on call service and also the bank to safeguard my property title any penalty to do so?
it's a fully paid off property fyi.

Understood, you want a standby cash for use when an investment opportunity presents itself.

If you choose a flexi account, then there wouldnt be any problem with that at all. But entire fund? No, once your loan balance clears finishes it will automatically settle the account.

If you are taking out RM500k, I suggest that you leave RM50k loan balance when you dump the money into the account, keep the RM50k cash somewhereelse.

This post has been edited by wild_card_my: Dec 18 2014, 02:48 PM

Our sifu is sensing many opportunities for bargain buys and preparing the bullets