Deleted, found the answer.

This post has been edited by mushigen: Feb 19 2022, 02:13 PM

I posed this question to a home loan officer just recently. The answer is no, because they still need to be convinced you can afford the monthly installments.

Semi or fully flexi loan?

When you say better, what were you referring to?

The tnc varies. For example, to redraw fund in mbb loan account, you can do so online through m2u and pay RM25 service charge instead of having to visit the bank and pay RM50 (in the case of HLB). For PBB, you also have to visit the branch, pay RM50 and minimum redraw amount is RM5000 (from what I can recall). Not sure about UOB though.

The 70% cap is only applicable to full flexi loan (in the case of 2 banks that I happened to ask), semi flexi no issue.
Even this 70% cap is applied differently. Bank H allows up to 70% of remaining principal whereas Bank P allows up to 70% of balance in current account.

Last 2 year's income tax filings (Borang B and the submission slip), Borang P (depends on bank), latest 6 months' bank statement if your biz account is from another bank, supporting documents to show you are able to pay the down payment and any savings to show you're able to continue paying if income drops in future (shares, Kwsp, bank savings, etc).

If your biz transactions are all in cash, you will have problem convincing the banks your reported income is genuinely that much.

Then your profile must be good - payment pattern and debt service ratio.

My advice would be for you to visit the banks and discuss with as many mortgage officers as you can. You will learn something new from every officer.

Is it going to be a sole or joint applicant loan?

When you say cheapest way, do you mean you want to get the lowest mrta premium (at the expense of coverage) or you're hoping to get cheapest premium that's sufficient to cover the loan balance?

If it's lowest premium (and resulting in lower coverage), you need to speak to as many banks as possible. I know one bank insists on CI coverage (higher premium).

Your posts contradict each other.

I see. I am surprised to hear this. Usually banks will want borrowers to take up some MRTA/MLTA or they will offer lousy interest rates to borrowers.

From my conversation with a few officers, first doc they look at is income tax submission return.

For MBB flexi loan, there are a few things you need to clarify with them. From what I know,

1. Interest rate is higher than that of semi-flexi loan

2. Fully flexi comes with compulsory overdraft. There is a commitment fee of 0.5 or 1% on unused overdraft. Which means, if you use the overdraft, you need to pay x% interest. The remaining unused portion will be charged a commitment fee.

3. Monthly maintenance fee is RM5

Edit: there are banks which have fully flexi loan without overdraft facility, which means you don't have to pay commitment fee.
I think you equate cheque book with overdraft. Cheque book is available if you opt for fully flexi loan which comes with a current account for you to park your money to offset principle and pay installments.

This post has been edited by mushigen: Mar 28 2022, 09:52 PM

Interest rate is a little high (but of course it all depends on your profile). Btw, is the interest rate final or initial approved rate? Usually loan officer will automatically help you appeal for lower rate since the initial approved rate tends to be higher than expected.

MRTA I tatau. Looks like you are around 30 years old to get this premium?

The last time I checked (one month ago), the going rate was 2.85%. Iinm, PBB has some sort of promotional rate of 2.8% right now.

And did you only apply from one bank? Your loan application will be reflected in CCRIS and the bank will be able to see how many banks you applied from. IMHO, if you apply from more than one bank, it will probably "pressure" the banks to give lower rate.

Would you be applying with another bank(s)?

I suppose the developer has > 1 panel bank?

I would think applying from just one bank means you're at the "mercy" of the bank. If the loan is approved and you don't accept it, you will burn your booking fee.

You can try asking around. Walk into a few banks to have a chat. The more you chat the more you will learn. You don't have to apply on the spot. Take your time to think about it. Jot down important points on paper (trust me you'll forget the details if you don't). This is a major decision.

Are you going for semi flexible or fully flexible loan?

Disclaimer: I'm not in the banking or mortgage line. This is strictly my personal opinion which could be wrong ya.

Are you buying a completed unit or just launched and not yet constructed? If not yet constructed, you might want to check out Affin's package which has something about not having to pay interest if project is delayed or something like that.

Not trolling, but shouldn't a bank manager be more knowledgeable or have access to this information compared to others

This appears to be a common requirement of banks. Thry want to be sure you can afford to pay for the dp. If you apply for 80%, they will want to see you have the 20% dp in liquid assets. Got this information from every loan officer I spoke to.

Yes, as long as it shows you have the money. You may want to find out more by speaking to as many loan officers as you can.

Not in my case. When I was offered a 70% loan, there was no such clause in the offer letter. During application, the loan officer specifically wanted me to prove I had the liquid assets to cover the dp (which I did), and my savings in that bank was a puny amount compared to the dp required.

That bank did not ask me to consolidate all savings and deposit to them.