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 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 

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~~~?

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 !

Noted. My mistake, thank you for the pointer. My other points are stand though, right?

30 years for the first borrowing, 25 years for the second one.

And they can only borrow up to 60% of their salary. So it's generally a good idea to just keep it as your 3rd and beyond housing loan.

That's the beauty of it. Government loans (at least Mortgages) are not reflected in the CCRIS.

However, it is reflected in your payslip, as such the banks would know that you have at least 1 housing loan with the government!

That's why, for the first house, if you can, do use commercial banks. Then for your 3rd house, use the government loan to get higher margins

Hello,

So you would like to refinance to get as much as possible for the cash out portion and for the tenure to be extended to more than 30 years. The loan amount will be limited to your income-vs-commitment levels, as well as up to 90% of your collateral Open Market Value (OMV) which is about RM585k. Your cash out-portion will be RM585k - RM210k = RM375k. For your needs I will help you apply to HLBB and OCBC.
 
Do give me a call so we can arrange a meet as soon as this Sunday evening. My services are free, I get my commissions from the banks, and I sure will work my level best to get what my client wants.

Yes and no. I do not design the banks' products so I would not know how they got around the BNM ruling, but here is what I know:

1. When you apply for a loan, the bank would need to check your income and your commitment levels, including the commitment of the new loan that you are applying for. Each bank has a different number for the maximum amount of your nett income that can be used as part of your loan repayment commitments, which is called the DSR limit.

2. When you apply for a refinancing, the loan will be divided into 2 portions:

a) Refinancing (which is the outstanding balance of the mortgage you want to refinance)
b) Cash-out (which is whatever amount above the outstanding balance) which you will receive as cash for you to spend on.

3. When you apply for a refinancing with a cash out, the bank will do 2 types of calculations:

a) Calculation to determine if you will burst your DSR limit or not.
b) Calculation for the actual monthly installment

4. For "Refinancing (which is the outstanding balance of the mortgage you want to refinance)", the calculation for the monthly commitment will based on a maximum of 35 years (or until you are 70) tenure. As such, the monthly commitment would be low.

For Cash-out (which is whatever amount above the outstanding balance), the calculation for the monthly commitment will based on a maximum of 10 years. As such, the commitment would be rather high. A lot of people get their loans rejected because of this BNM ruling

5. HOWEVER. If you do get your loan approved, OCBC and HLBB would allow the monthly installment (for both the refinancing and cash-out portions) to be repaid in 35 years; as such, your installment would still be low

Conclusion: The 10-year rule was introduced to lower household debt by preventing borrowers from continuously extend their loan repayment period; however, those who are not affected by such actions due to much higher nett-income-vs-commitment would be allowed to do so.

I'm sorry if this is rather confusing, do ask if you need more clarifications!!!

p/s I will on break for half-a-day starting from 11am today. You all have a good discussion and I will get back to answer any open questions.

Like I mentioned, I did not design the products, so I do not know all the details of the ruling and its impact on mortgage products; but the banks' product designer seem to be able to get around that BNM ruling. I guess what I am saying is that this question is well beyond my scope of expertise.   

However, the results seem to be as you suggested. 35 year tenure for both refinancing and cash-out portion are being done by OCBC and HLBB.

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 !

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.

Actually is like this, lets say you refinance an unencumbered property.

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

RM500,000 X90% - Rm60,000 = RM390,000

you can cash out RM 390,000

hence, Refinance to a new bank with DSR  calculation
encumbered Property
O/S loan    =RM60,000    (normal BLR-2.xx / 35 YEARS max)
Term loan  =RM390,000   (normal BLR-2.xx /10 years max )

Unencumbered Property
O/S loan    =RM60,000    (normal BLR-2.xx / 35 YEARS max)
Term loan  =RM390,000   (normal BLR-2.xx /35 years max )

Thats why it's lower for DSR calculation on the unencumbered property.

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

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.

rm190k loan but with -2.4% on BLR, cantik tak? Hehe

Hi, i wanna ask, if bank loan reject, when can we re-apply the same bank again for the same property?
is there any waiting period?

Thanks!!

Is it still possible to get financing tenure of 40 years? Even after they came up with the max 35years ruling,there were banks that still offered 40.
But now most banks i asked say they cant give more than 35.

Might be loopholes for those who want to apply personal loans or credit cards too in one SHOT with all different banks. Imagine one bank RM100k PL, 10 banks how much? Ha ha.. AFter that got the money disburse from all banks and at least you have 1 million in hand now (not included credit cards). Some people think it's worth with the money and self declare bankrupt . lol??

Weakness of CCRIS perhaps? should be in REALTIME updates.

Yeah. One should be free of debts in other words to apply PL.. Once approved from all the banks lol... imagine that.. Submitted all in the same time, and i guess all approval will take only 2-3 working days upon submission.

So i guess this is the weakness for CCRIS as it took maybe one week time to update? Correct me if i'm wrong