If you really can afford to buy two properties at the same time, why worry bout lower LTV? Why u still wanna go 90%. Sure u can afford 70% loan ma.. u got cash what. Your DSR doesnt matter.

I guess the logic is if there is a loophole to go 90% why want to go 70%? Why want to spend those cash upfront even if they have it, they probably think could use the cash for other pleasures / investment

gotta agree with scarypoolparty on this one. no need to sympathize.
people thinking got free lunch probably deserved to have their lunch (money) taken away.

when i started, its an agent who approached me with this idea buying some popoti in sg besi, with compression loan. honestly i was attracted, cause he didn't mention any downside, making it sounds easy to just continue buying popoti and refinancing every few years to get more money to buy more popoti. but when i go back and do the math, i realise you do need to pay higher installment for the refinance and from installment from new popoti you acquired with the refinanced cash. so it will keep snowballing until ?
either you die broke, or live long enough for the popoti to actually make profit either through appreciation or rental. looking at the news and forum we know how it went down.
for guru and agents who teach you this method, they are like one night stand. they disappear after getting something from you. they have vested interest. and the way they make money is through you. so they would have told you the shit smells nice if you pay them (enough). you owe it to your own to look out for yourself.

people now really are too lazy to properly get to know something before diving in. everything want to be fast. can earn money ? ok onz. high return? bbb.looking at AW videos all i was thinking like "wtf so easy 給他爆(maxing the DSR)", projection all do nicely and all harping the same kind of noise dreaming ez money, who can actually guarantee property price to increase 100% in the next 5 years, and who will buy from you? got brain no use. blinded by greed per icemanfx, but also deserved to be waterfish cause they lazy.
well, ez money for the conman, or popoti gurus, no difference.
but then again, i might be biased. cause someone trying to one up me years ago and fighting bankruptcy now. can't really say i feel bad for him.

if so easy get rich there wont be people living on the streets d.

if so easy for property guru with their knowledge to earn money, they would be busy earning money instead of teaching you, unless you're the way they make money.

painful lesson for them. hope it guides others from repeating their mistake.

Loan compression or tricks to obtain maximum financing works on the presumption that “if something is hard to get and you can get it while others can’t, you win”

So, if rules are such that loans are hard to get, it must be good , cos the rich dun want you to get it.. so if you can get away with this rule... you will be rich!
Not....

Bnm guidelines is to prevent or mitigate subprime loans. Loan compression is subprime by any other name.

most of them do this because they could, not because they have to. and greedy

No la.. Malaysia banking strict like hell....

If banks were strict, loan compression would not had possible.

gotta agree with scarypoolparty on this one. no need to sympathize.
people thinking got free lunch probably deserved to have their lunch (money) taken away.

when i started, its an agent who approached me with this idea buying some popoti in sg besi, with compression loan. honestly i was attracted, cause he didn't mention any downside, making it sounds easy to just continue buying popoti and refinancing every few years to get more money to buy more popoti. but when i go back and do the math, i realise you do need to pay higher installment for the refinance and from installment from new popoti you acquired with the refinanced cash. so it will keep snowballing until ?
either you die broke, or live long enough for the popoti to actually make profit either through appreciation or rental. looking at the news and forum we know how it went down.
for guru and agents who teach you this method, they are like one night stand. they disappear after getting something from you. they have vested interest. and the way they make money is through you. so they would have told you the shit smells nice if you pay them (enough). you owe it to your own to look out for yourself.

people now really are too lazy to properly get to know something before diving in. everything want to be fast. can earn money ? ok onz. high return? bbb.looking at AW videos all i was thinking like "wtf so easy 給他爆(maxing the DSR)", projection all do nicely and all harping the same kind of noise dreaming ez money, who can actually guarantee property price to increase 100% in the next 5 years, and who will buy from you? got brain no use. blinded by greed per icemanfx, but also deserved to be waterfish cause they lazy.
well, ez money for the conman, or popoti gurus, no difference.
but then again, i might be biased. cause someone trying to one up me years ago and fighting bankruptcy now. can't really say i feel bad for him.

if so easy get rich there wont be people living on the streets d.

if so easy for property guru with their knowledge to earn money, they would be busy earning money instead of teaching you, unless you're the way they make money.

painful lesson for them. hope it guides others from repeating their mistake.

all i know this grey area / loophole does more damage than good, especially when the so call exit plans doesn't work out or worst case going to jail for fraud.

AFAIK, there is no one who went to jail for loan compression before in Malaysia or at least i have never heard of, but who knows someone might be the first..

A lot of people tot getting more prop means more assets and can show off.
But they nvr think that before the prop really becomes your assets it is a big long term liabilities that u hv to serve.

Those 'guru' that teach or advise ppl to do loan compression also not being caught coz there is no law that can charge them on their wrong doing.
So greediness is the source of the problem I can say.

The loan approval process is very stringent.  Loan compression is a loophole. People exploiting the loophole does not equal banks being careless or relaxed.

It is no longer doable with a centralised loan application system in place, a step in the right direction.

boss... how to shorten the loan tenure from 30 yrs to 7.5 yrs???

Loophole or not, loan compression i.e subprime loan did occurred. It may not lead to systemic crisis but certainly increase npl. It is a matter of how much.

Agree with rise of NPL, as of now no one knows. But I know the occurrence of loan compression is limited to certain projects. (Pushed by gurus). So it should be contained.

Whether it will cause a rippling effect or not can be seen with the example of Arte +. Which has not affected values of the properties in its vicinity.

The very definition of subprime is lending to people with poor credit history.

Banks were stringent when assessing credit profiles.

These loans should not be labeled as subprime.

Just call it what it is, a loan approval obtained by way of exploiting a loophole.

If rental from your loan compression can cover back ur loan installment why not? If wanna get rich, it gotta takes some risk.

If rental from your loan compression can cover back ur loan installment why not? If wanna get rich, it gotta takes some risk.

If rental from your loan compression can cover back ur loan installment why not? If wanna get rich, it gotta takes some risk.

Agree with rise of NPL, as of now no one knows. But I know the occurrence of loan compression is limited to certain projects. (Pushed by gurus). So it should be contained.

Whether it will cause a rippling effect or not can be seen with the example of Arte +. Which has not affected values of the properties in its vicinity.

The very definition of subprime is lending to people with poor credit history.

Banks were stringent when assessing credit profiles.

These loans should not be labeled as subprime.

Just call it what it is, a loan approval obtained by way of exploiting a loophole.