That will be incorrect.

This is bank DSR internal calculation.



If it passess.

Then it will be revert back to original 360k 35 years tenure which is RM1726.

However, there are some unique financial institution like AIA for example, which the internal DSR will calculate as 35 years instead of 10 years. Which makes the refinance process easier as the DSR will pass easily.

This post has been edited by lifebalance: Jul 6 2017, 11:49 AM

No it is wrong. because most banks would allow you to repay the 10 years cash-out tenure (10-years for BNM requirement when calculating the DSR) in 35-year tenure.

So your full isntallment should be RM1726...

May i know maximum how many percent of commitment / income for AIA when applying loan ?

That will depend on your income level. Up to 75%

This is on the lower side. For other banks the DSR can go up to 90%. Also, not sure about AIA's calculation of current commitments, will they follow CCRIS or can clients override that with the installments stated on the LOs? In my professional opinion, the rate is also on the higher side and you would be losing a lot with fixed rates in long term - not many will hold one mortgage for too long nowadays too.

I have a question here. I own 2 small shop lots (Fully Paid Up) and a Sdn Bhd Company without any properties.
1) Would it be advisable to sell these shop lots to my own company to unlock it's value an let the Sdn Bhd finance the loan?
2) Is it legal to sell own property to own company?

The LTV of SDN BHD is on the lower side, tenure is shorter too.

1. I would recommend refinancing it using the directors' names, you can use either the company bank statement and/or your director's salary as proof of income

2. It is legal to "sell" but more like to transfer the ownership. These 2 entities are separate entities... many people do this, especially for tax purposes.

1. It depends on how you plan to move the properties as individual and the company are separate entities and also whether the other directors agree to take on the loan for this purchase.

2. Yea no issue if it's agreed by all parties in the sdn bhd

Are you saying that the 10-years is only for bank calculate the DSR? If it approves, we can still repay in 35-years tenure?

Im so confuse on this matter for so long

I've already explained this in my post.

That is how the bank system works for refinancing cash out calculation.

Existing loan amount from another bank will remain as 35 years calculation
Extra cash out will be based on 10 years calculation.

The above is subject to your current age, up to 35 years or 70 years old whichever comes first.

This post has been edited by lifebalance: Jul 6 2017, 07:04 PM

Thanks for the reply

I am not actually looking to refinance it, I just want to transfer it to the company. Of course the company will have to take a loan to pay me.

Basically this will be a buy-sell between you and the company, the company will be taking a loan to pay you.

As long as your company statement is strong, yes you can use the company to apply the loan for the properties.

i read post #80 saying bank allow refinance 90% of market value.
Is it true? Can we get 100% refinance? thank you.

Max you can refinance is 90% margin , there is no 100% Refinancing now

yes, when banks are calculating your loan eligibility, they will consider the cash-out as 10-year payable... that means the installment will be higher than if you were to borrow for 35 years.

Assuming that you managed to get the loans approved, your installment will be based on 35 year tenure, not 10 years

I see, in that case, the company would be buying the properties from you. There are 2 difference entities at play, so there is not conflict nor is it illegal.

The company will have to apply for a company loan though, and the company finances has to be strong enough to take up those loans

90% MOF of the market value plus other moving costs like legal, valuation, and stamp duty fees. So your financing would a bit higher than 90%, like 92% or so.

Market value is variable though, it can differ from valuer to valuer (thus from bank to bank)

I think fix rate is good for those who always pay extra to their mortgage.. I've a friend took Aia fix rate loan 30 years however she owes paid extra n she managed to fully settle the loan in 10 years time and save a lot of interest. But she has a way of calculation on how much extra to pay eveymonth in order to fully settle earlier.

You can pay extra each month with a variable rate too and finish paying earlier than the original ternure

In fact, due to the higher interest rates of AIA products, you would end up having paying more in the past 10 years. Fixed rate always have higher rates than variable rates at any given time of application. As of now, the best rate for variable is 4.25%, but for AIA's current offer it is at least 4.8%...

It is up to you, but AIA, just like any company is out there to make a bank, so you need to know more than just what the insurance agents are telling you. In my professional opinion as a mortgage broker, AIA fixed rate should be avoided unless fixed rates is of the highest priority for y ou.

May I ask a question

If 1 owe few bank's Credit Card and I plan to refinance my house which is fully paid, can it be done?

When banks look into records, they might say I have high commitment, can I arrange with bank to settle those credit cards? and get some balance for my own use?

your friend is pretty savvy in her financial management.

AIA Fixed Rate loans are good for people who want a peace of mind on the interest rate they are paying over the long term. However you are also given an option to pay off the loan earlier should you decide to settle off the loan as soon as possible.

Do kindly ignore the biased opinion of certain mortgage consultant as he has not some, but biased tendency against insurance agents when he's an agent himself. Probably trying to up-sell himself to you and then offer his products instead.

Anyways, Fixed rate loans are a good way to hedge against any increasing interest rate, with recent reports that BNM will raise the OPR (0.25%) in the next 2 years till end of 2018. It's really up to you to decide whether fluctuating interest is suitable or fixed rate.

Another advantage of AIA would be the cash out for refinancing which will be calculated @ 35 years instead of bank's 10 years. Therefore refinancing possibility are easier for debt consolidations and investment purposes. A difference of few 0.x% is negligible when you can earn more from saving interest on paying other debts or returns from the investment that you plan to venture into.

Yes it can be done, the credit card commitment is calculated at 5% based on the outstanding amount.

I will need to look into your overall profile to determine if the refinancing is possible to settle off your debts.