Hi,

My parents are planning on getting a house soon. We have visited and viewed a couple of houses and found 2 to be to our liking. Just have some questions regarding it.

1. My dad is 56 years old. He is planning on use a part of his EPF and pay for the house and take loan for the remaining. [He actually wants to use about 80% or so of his EPF to get the house, in order to reduce the interest rate from loan. So, instead of paying interest to the bank, he can pay whats he's supposed to pay to the bank into the EPF. He said EPF can keep until age of 65. Is this a good move?]

2. The owner of the house said some of the banks may have difficulty in approving the loan compared to other banks. Is it true? If so, which bank would be the best to go for?

3. Assuming we found a bank [question no 2] and [question no 1] is a good option, what are the chances of getting a loan?

4. We are making the talk directly without the agent. Through the agent, the house is around RM420K. Without the agent, the owner agreed around RM375K. If going without a agent, what problems we might be facing? What should we be prepared for?

5. Regarding deposit to the owner to secure the house. How can I ensure that they wont runaway with the deposit or wont sell it to other party? How do I draft an agreement for this situation?

This is what's going through my mind right now. Will post other questions if i remember them throughout the discussion.

All help is appreciated.

p/s: I'm still studying and will be completing my study end of this year, and work next year. that's when the earliest I can contribute to the payment of the house.

Thank you.

deal through Lawyer anything about money and agreement
dont try to save lawyer fees
then u will have less thing to worry
ask fren or family member to recommend one
bank u can just walk in and ask about loan. they are more willing to help u out

Hi,

Thanks for the prompt reply.

Dad is going to talk to the banks tomorrow and see how it goes.

Will take your advice on the lawyer and find a reliable one.

Regarding the Question no 1, What is your opinion on it?

Thank you.

nothing wrong with EPF if he think the remaining of epf saving is enough for him until his old/retired.

and as long as you give him pocket money in future he will survive

1. With semi flexi loans nowadays you don't have to put such a heavy downpayment unless your parents DSR can't handle the monthly installment

2. Will need to evaluate ur parent's income

3. refer to 2.

4. Without the agent, you can save on the agent fees 3%

5. Engage a lawyer

Let me know agaiin

at 56 years old, isn't it quite hard to get the loan approved?

Hi,

Thank you. Will be contacting you soon.

Hi,

Yes, I'm thinking its hard as well. But my dad want to borrow about RM100-150k For period of 5-6 yeara The rest we have the cash. Hopefully that might help.


Another question. Let's say I prepared a letter stating that the owner of the house, XXX, has agreed and received a sum of about 2k, to keep the house for, YYY, until the approval of the loan. In the case of the approval did not pass, the owner, XXX, can open the sale to another party.

Signed by both XXX and YYY.

Is this document legally binding? Can we bring it to court should either party did not obey the document?

Thank you.

can u pass the money to your lawyer and use them as your trustee? that will be safer than passing it directly to the owner. my 2 cents.

Saving RM45K on agent fees for a RM400K condo is a very good deal. Just get a lawyer to advise you on the process. Yes, the document you signed will be legally binding, it's no different compared to engaging an agent.

Hi,

Thank you. Will get a lawyer and go through them.

Hi,

Looking for some good lawyers and found a few. Just curious, document/agreement that is prepared by home owner or buyer and signed by both, without the help of a lawyer, is still considered legally binding? If I just go cc, type up a letter, and both of the party sign, its considered legal?

Thank you.

Since you need to engage a lawyer anyway, it will be better if you get the lawyer to draft the agreement for you.

Hi,

Thank you. Almost have all done. Just one more question. Regarding Mortgage insurance. Which should we opt for MRTA or MLTA?

Thanks.

This really depends on individual, MLTA is basically life insurance in disguise, if you plan to settle your loan sooner, MRTA will be a better option. Check out this article for more info: https://www.imoney.my/articles/mrta-vs-mlta-need

Note: If you are applying your housing loan through a mortgage broker who often double as insurance agent, they will try to push MLTA to you, if you apply your loan directly with bank, bank officer will try to push MRTA to you. So you really need to decide for yourself which is better for you.

MRTA if you only got short term plans to buy a house

Otherwise MLTA for long term if you plan to continue purchasing other properties down the road as you can double it as a mortgage retirement plan to fully pay off the housing loan using the MLTA cash value.

make sure your seller is comfortable with your recommend lawyer. best if could use back his to save the hassle

Hi,

Thank you I have taken you advises and managed to secure the loan.

I'm just curious as to what are the processes/steps that are we must go through the acquire the house? I'm confused as some said you can pay deposit after bank loan approve. Some said wait first, and settle all with lawyer. Can someone provide insight to this?

Thank you.

define deposit.

booking is earnest money. normally 2% or 3%, normally sellerr will pass this money to agent as commission

deposit or downpayment, balance of 10% upon signing SPA. it regardless whether u secure loan or not. not seller concern

Hi,

I'm sorry, I should have been more clear.

I have not bought a house because I'm still studying and yet to work. My dad had previously owned a house but that was all arranged by his friend. Although my dad might know what are the steps to own the house, I would like to equip myself with the knowledge as well.

I would like to know that now the loan is approved, what is the next step? Do we meet with the bank agent, lawyer and owner and proceed to sign some documents? When do we pay them? How the loan is transferred? When is the house title transferred?

Sorry for asking a lot of questions.

Thank you.

no problem. u got the heart to learn and ask, many here will help

loan approved. sign the LO, if you want to use back the same SPA lawyer, get them to quote loan doc fee.

if accept, pass the LO to them to prepare. sign SPA and loan document at same day. preferably

then everything signed by both party and document all endorsed, then wait money disburse to seller.

then collect ur key

new home sweet home

Hi,

Thanks for replying.

I assume that LO = loan offer and SPA = sales and purchase agreement.

Then, is this correct?

1. Once loan is approved, go and sign the offer letter. Entities involved are the buyer, bank agent and lawyer.

2. Sign SPA document. Entities involved are buyer, seller and lawyer. Once after signing the SPA document, we pay the seller the deposit [in this case is 50%].

3. Bank disburse money to seller [remaining 50%] and we get the key to the house.