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> Mortgage Loan Package Inquiries, (Strictly NO Promotion Allowed)

wild_card_my
post Dec 11 2014, 09:12 AM

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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
wild_card_my
post Dec 11 2014, 10:23 AM

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QUOTE(kochin @ Dec 11 2014, 09:43 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:

» Click to show Spoiler - click again to hide... «


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
wild_card_my
post Dec 11 2014, 03:35 PM

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QUOTE(lucifah @ Dec 11 2014, 03:21 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
wild_card_my
post Dec 11 2014, 04:20 PM

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QUOTE(cfa28 @ Dec 11 2014, 04:15 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 sad.gif

This post has been edited by wild_card_my: Dec 11 2014, 04:24 PM
wild_card_my
post Dec 11 2014, 08:58 PM

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QUOTE(lynforum @ Dec 11 2014, 08:43 PM)
Bad thing about Islamic is the confusing statement shows selling price rather than the real outstanding.
*
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.

user posted image
wild_card_my
post Dec 12 2014, 01:50 AM

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QUOTE(Jasoncat @ Dec 11 2014, 10:04 PM)
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.

wild_card_my
post Dec 12 2014, 08:47 AM

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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
wild_card_my
post Dec 12 2014, 09:05 AM

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QUOTE(Jasoncat @ Dec 12 2014, 08:58 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.
wild_card_my
post Dec 12 2014, 11:36 AM

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QUOTE(chloelingeelin @ Dec 12 2014, 09:41 AM)
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?
*
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%.

QUOTE(cfa28 @ Dec 12 2014, 10:56 AM)
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%

Which bank is this btw? You have to understand that they cannot know if the loan that they took with their bank is your 1st, 2nd, or 3rd loan you see? smile.gif

But lets wait for our other sifus here to explain. I could be wrong.
*
You got this right.

QUOTE(kitkat78_98 @ Dec 12 2014, 11:02 AM)
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... smile.gif Normally payment is via online
*
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 smile.gif 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 smile.gif

- Faiz Azmi (+6 013 369 3993)

This post has been edited by wild_card_my: Dec 12 2014, 11:48 AM
wild_card_my
post Dec 12 2014, 11:47 AM

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QUOTE(cfa28 @ Dec 12 2014, 11:45 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 flex.gif

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 laugh.gif laugh.gif laugh.gif Lawyers can, on occasions be full of shit laugh.gif laugh.gif laugh.gif

This post has been edited by wild_card_my: Dec 12 2014, 12:03 PM
wild_card_my
post Dec 12 2014, 12:37 PM

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QUOTE(kitkat78_98 @ Dec 12 2014, 12:33 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. smile.gif

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
wild_card_my
post Dec 12 2014, 02:01 PM

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QUOTE(asiatrader98 @ Dec 12 2014, 01:55 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 biggrin.gif
wild_card_my
post Dec 12 2014, 08:37 PM

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QUOTE(asiatrader98 @ Dec 12 2014, 02:55 PM)
i think it is under BNM rules.. hmm.gif

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

any other way to get the cheaper standby fund by pledging the house?
*
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
wild_card_my
post Dec 13 2014, 09:42 AM

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QUOTE(opera33 @ Dec 13 2014, 09:15 AM)
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
wild_card_my
post Dec 13 2014, 10:13 AM

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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.
wild_card_my
post Dec 13 2014, 11:26 AM

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QUOTE(opera33 @ Dec 13 2014, 11:19 AM)
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?
wild_card_my
post Dec 13 2014, 04:08 PM

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QUOTE(opera33 @ Dec 13 2014, 03:56 PM)
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.

user posted image
wild_card_my
post Dec 13 2014, 08:42 PM

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QUOTE(opera33 @ Dec 13 2014, 04:42 PM)

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.
*
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?

QUOTE(Aik_FEI @ Dec 13 2014, 06:06 PM)
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
*
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?

QUOTE(KilJim @ Dec 13 2014, 07:24 PM)
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
*
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... :|
wild_card_my
post Dec 14 2014, 03:11 AM

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QUOTE(manapergi @ Dec 14 2014, 12:48 AM)
Bro
The bonus column is monthly comm or one off bonus
Some banks exclude one off bonus from income calculation.
*
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.

QUOTE(opera33 @ Dec 14 2014, 01:04 AM)
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.
*

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.


QUOTE(cfa28 @ Dec 14 2014, 01:34 AM)
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
*
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 laugh.gif

This post has been edited by wild_card_my: Dec 14 2014, 03:37 AM
wild_card_my
post Dec 14 2014, 09:23 AM

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QUOTE(Jasoncat @ Dec 14 2014, 08:37 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

» Click to show Spoiler - click again to hide... «


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

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