Your current loan commitment is about 30% of your income. If banks were to follow strictly the 1/3 ratio, then your are not eligible.

However some banks are flexible especially your regular one where most of your transactions are conducted base on the following ...

1. Your working history.
2. The balance tenure of existing loan commitment
3. Savings/FD account balance
4. Repayment history for existing loan and cc.
5. Living expenses
6. Dependents
7. Property price, % loan applied, tenure and location.
8. Reason for the purchase

Approach the bank and hear from them. It depends on assessing your credit risk.

This post has been edited by mini orchard: Oct 13 2020, 05:45 AM

If you have dependents, then go for mrta.

The difference between the two plans in monthly repayment is about 135 per month.

In 1 year, you be paying extra 135 x 12 = 1,620

In 10 years .... 16,200
In 20 years .... 32,400
In 30 years .... 48,600
In 35 years .... 56,700

Assuming there is no change in interest rate for easy understanding.

If you intend to sell on the 10th year, you pay extra 16.2k and so on.

If the 10% dp is important to conserve cashflow, then take full loan.

Otherwise, you may later need to borrow Personal Loan at a much higher interest rate.

Many borrowers seldom complete their housing loan for maximum tenure.

If you have now 30k or 100k cash reserve, the decision is obvious which package to sign up.

Interest rate is not the only sole decision factor when signing up for a loan.

Sometime, is better to pay more to have a peace of mind when the future is uncertain.

You have capital appreciation to cover for any extra payment. At worst, you dont make profit but a free stay.

A draft SnP can be out within a week for buyer seller review.

Prior to that, the lawyer has to conduct a title search at the Land Office. Only when the search result is satisfactory, only then the lawyer will issue the draft. I think tbe delay is because the search result is not out as currently the Land Office is having high backlog of work.

In many legal firms, a lawyer is assisted by few assistants and many are experienced in conveyancing work. They will liaise with buyers and sellers in preparation and signing of SnP, Loan Agreement and other related matters.

Conveyancing is a routine work when there are no issues with buyer seller. Unless there are disputes, the lawyer will normally leave the work to his assistants as some will require to attend court cases, govt related matters, meetings etc.

A legal firm is not necessary be in the bank panel as it can apply for adhoc work with the bank approval. I believed the loan officer would not recommend a lawyer without approval since his commission is upon successful execution of tbe Loan Agreement.

This post has been edited by mini orchard: Sep 17 2021, 08:05 PM

No.

All banks provide loan to finance a 'property' ..... land and or building. Is only the % of loan to market value, location, tenure and category of land use.

Otherwise, how do developers buy land for future developments or how do developers sell residential detached land plot to buyers ?

This post has been edited by mini orchard: Sep 23 2021, 04:35 AM

If you are buying through a REN, he will normally work along with few bankers.

Yes

Some banks give options to borrower to buy from the bank panel or his preferred insurer.

The reason is to ensure borrower has the fund to repair the property in the event of a fire.

Fire is just a basic policy. There are other perils to include in the policy with additional premium.....damage due to storm, flood, landslide, riot, malicious damage etc.

This post has been edited by mini orchard: Sep 28 2021, 06:15 AM

Submit application to few banks. Different banks have different calculation method.

If you want 'free', buy new.

Ensure that what was proposed by the mortagage officer is correct ...

1. Loan Amount
2. Tenure
3. Interest Rate
4. MRTA/MLTA
5. Fire Insurance
6. Lock Period
7. Early Settlement
8 Redraw Facility

Can add name in SnP. For bank loan, a change in shareholdings need bank consent after loan approved.

This post has been edited by mini orchard: Oct 4 2021, 05:42 AM

Generally, banks will only accept collaterals for loans if they have full control over it.

Nowadays, banks will 'lock' any deposit acccounts when loan instalments are in arrears and after repeated reminders to settle. Account holders will not be able to do any withdrawal, however deposits are allowed

Basically, housing loan are classified into 2 ... fixed (govt and insurance co) or variable interest rate (banks). For banks, it can be flexi, semi flexi of fixed.

For most purchase, normally a 10% downpayment is required unless if buying from developers and they have rebates or discounts.

For a 750k property and loan at 90%,, the monthly commitment is about 2,846 per month based on current average interest rate of 3% pa.



https://www.propertyguru.com.my/mortgage/ho...loan-calculator

All property purchase can be sole or joint name provided the other party is not a bankrupt and blacklisted by banks.

In most housing loans, banks will normally require the borrower to buy life insurance (mrta or mlta) to cover the loan sum in the event the borrower pass away.

Finally, always buy/borrower within ability to repay. Otherwise the banks will not think twice to recover any outstanding loan through foreclosure of property (auction) and if is not enough to cover the balance, through bankruptcy action.

Cancel the car purchase or buy a cheaper or used car and reserve your eligibility to the 2nd property.

Apply loan only when there is a unit for sale. You should know roughly whether you qualify for a housing loan ..... monthly repayment shouldnt exceed 33% of monthly income and with no existing loan (ptptn, car, CC or PL)

Yes ... for professional fees excluding disbursement, if any.

Valuation fees are controlled ..... same as legal fees for SnP and Loan Agreement.

There are scale fees and valuers cannot charged more than prescribed. However, he can give a discount depending on how much is the property.

Some may charge disbursement depending on job scope, location of property etc. You can confirm again with the valuer whether his fee is nett.



This post has been edited by mini orchard: Oct 18 2021, 09:46 PM

How are you going to show EPF the proof of buying a property ?

Majority of borrowers seldom complete their housing loans. So paying an initial higher fixed rates over variable rates is not cost effective since the initial borrowed sum is high.

To the banks, they are collecting current fixed rates to cover any increase in future variable rates.

Is a 'gamble' for both ... if rates increases beyond agreed fixed rate, borrower wins and if lower, bank wins.

But many government of the day wont allow high interest rate for long term as it will affect the country overall business or economy.

When interest rates are super high, less would want to invest .... include buying properties.