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

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 !

Will it be a problem as my mother is age 60 in 2015?

if refinance under your mother name, tenure will be 10 years max, You can refinance and cash out under your name, 35 years is possible if your age us below 36 of years

Is it possible to cash out for a period of 35 years? Seeing as you recommend OCBC and HLBB which can up the tenure to 35 years?

35 years is possible as above mention, DSR can even reach 35 years as your house is now unencumbered, easier acceptance.

Is it wise to settle my ASB Loans as their rates are BLR-1.65% as compare to Refinance rates of BLR-2.45%(approx.)?

Yes it's radical decision to do so as u will save alot.

Is it wise to settle my car loans seeing as car loans rate a approx. 1 to 2% only?

CAR loan is in flat rate term, but with 2% flat rate calculation, paying it off with cash out amount is not worth. as the reducing balance rate for BLR-2.45% account for higher interest than the 2% car loan.

I also plan to cash out additional funds for emergency savings/life savings which I will put into ASB/ASB2 accounts. Again, comparing rates, ASB/ASB2 dividend of minimum 6% p.a as to Refinance rates of 4.4% p.a. (BLR-2.45%). Is this a wise decision?

It is wise for you to invest into ASB with your cash out amount, it also depends on your investment and risk appetite, as the ASB return yield is always higher compare to BLR-2.xx% .

ＮＯＰＥ，no such delicious scheme from OCBC !

as what @wild_card said, it can be included in the LOAN financing.

But, OCBC do offers extra 20% renovation and 10% personal contingencies scheme (BLR-0%)

if you opt for that, you can try OCBC ~

If you area saying monthly installment RM1500

Property range around RM 350-300K

Hi, Mr KB9

If you have 2 properties on hand, refinance any one of it will still consider 2nd house 90% Refinance.

MOF 70% will only be counted if you have 3 residential properties on hand !

If you Refinance UNENCUMBERED property, your DSR calculation will be much lesser for certain bank, lower commitment DSR for your loan to pass through.

It's all under BNM rules and regulation, @wild_card_my is correct.

Refinance still falls onto the Refinanced Properties loan, in banks record to be clear. =)

and you are right !

Hi jocall123, let me give you my suggestion

Refinance cash out to pay off car loan is not a wise move. Let me explain succintly.

Your car loan is calculated based on flat rate, meaning to say the moment you purchase your car, the interest has already been calculated based on your purchased price, hence your installment will bore the interest from the beginning and paying off car loan earlier doesn't help you to save a cent of car loan interest.

I advise that you refinance cash out and park the cash in better investment, such as ASB( if you are muslim ), pay off credit card or personal loan. Or as your personal contingencies.

Hope my answer do shone some light to you inquiries =)

Actually is like this, lets say you refinance a property.

Property price Rm500,000
O/S Price Rm60,000

RM500,000 X90% =RM450，000

RM450,000-RM60,000 = RM390,000

you can cash out RM 390,000

hence, Refinance to a new bank, DSR Calculation


encumbered Property
O/S loan =RM60,000 (normal BLR-2.4 / 35 YEARS max)
RM282/month

Term loan =RM390,000 (normal BLR-2.4 /10 years max )
RM4032/month

TOTAL Back End DSR = RM 4314


Refinance an unencumbered property.

Property Price RM500,000
RM500,000 X90% =RM450，000

You can cash out RM450,000

Unencumbered Property



Term loan =RM450,000 (normal BLR-2.4 /35 years max )

Rm2115/month

Total Back End DSR = RM2115

BE DSR RM4314 (encumebred) compare to BE DSR RM2115 (unencumbered)

Unencumbered Property approval for income base isn't it lower ?


That's why it's lower for Back end DSR calculation on the unencumbered property, easier loan approval for limited income.

This calculation is based on certain bank, not all bank holds similar calculation.

This post has been edited by Aik_FEI: Jan 5 2015, 05:21 PM

Bro my bad, I have reedit my post. TYPO !
DO review, and give me some feedback.