Hi,

I want to buy two properties A and B. My earlier plan is to buy property A. (Rm320,000) this is my first house loan. Property A is gonna completed on Jan 19. My loan has been approved. 80%. Just pending to sign the LO.

Now I placed book on property B. The loan is also approved by another bank. 90%. (Rm420,000). Property B schedule to complete in 2021. Also pending signing the LO.

Question. By right if I sign the first LO. My second loan for property B won't get approval right?so The developer recommend me to sign both of the LO at the same time so that BNM will have green light so i can buy both at the same time. Is it true?

Just afraid that if I sign both LO, BNM will trace in the system and property A loan will be canceled. My priority now is in property A.

Should I sign the LO for property A first and ditch the loan for property B? Or I can sign both LO without worry?


Appreciate your kind reply 🙏🏽🙏🏽

There is a risk that one of ur LOs are cancelled. But from what I know. It is not uncommon for people to do that..to 'trick' the system by signing both loans at the same time.But the risk is all with you. And there's nothing to prevent the bank from cancelling your loan later on..... So in my opinion. Follow BNM guidelines. It's too much of a risk. Unless u have the cash.

This post has been edited by gooberhock: Jul 15 2018, 09:29 PM

agree with gooberhock, and keep in mind in case you success, your instalment for 2 unit property not only one.
Make sure your budget enuf to pay the monthly repayment

That's what most investor doing it. Some do it 3 or more at the same time but better with same loan amount.

This is a trick many flippers used to buy multiple units during the bull run.

If either or both bank check ccris before first drawdown, and bank found out your financial standing has changed, they could cancel the loan.

As of today this mutiple loan submission trick still work.
Just that are we at the bottom of property price now to be so confident in submitting and buy 2 or more property at a go?

Considering the property B will only can be finished on 2021, I think the monthly installment will be no issue. But on the safe side yea I think it's better to follow the BNM guidelines.

Yes. I heard about this as well. The loan is better on the same amount. Otherwise they will track and cancel one of the LO.

That's more like gambling than investing dy. There are guidelines for a reason. If everyone had multiple props at 90% leverage we would really see the prop bubble burst.

Yea you got your point there. I prefer financial freedom over hassle on renting out units. I should consider which one is the priority and don't sign the other LO right?

work or not depends on how prudence both banks want your business.

usually before 1st drawdown, banks will revisit your ccris again. if changes happens and they think you have gearing issue, they will not proceed with your bank loan.

But with that being said. I have 2 loans at 90% 2 at 80 and the rest at 70 or less. But this the 90 and 80 were taken right before the guidelines were set and when props were far more affordable than today.

The loan percentage is set by the developer and the banks. I'm sorry but I'm not sure about the guidelines. Actually for property A loan is either 80% or 78%. Since its my first house loan is approved at 80% with 20k cash back.

So u are prepared for worst come to worst repayment of 2 units from ur own pocket, in the same time able to top up the balance if interest rate increase?

Property A is a service residences and my unit is facing the beach. If let the unit managed by developer, can cover the monthly installment. But 30 months contract. I prefer to let agent to manage. Per night stay is rm200 profit.

Property B is a dual key studio top floor next to a lift. I plan to stay in one of the studio once completed and rent out the other studio to students nearby.

It's subjective. In my opinion both unit locations are very strategic. 😅

Good location have higher chance to lease out, but u definitely need some buffer for at least short term of vacant period. U might even reduce ur rental in order to lease out soonest possible. Then once interest rate increase ur repayment going to top up while rental might not follow suit.

Usually bank can approve much higher than the amount that consumer can afford after inclusive other necessary expanses. If squeeze urself too much might be too risky for u.

Is the units price around the same? So you signed the LO in the same day or dealt with the banker?

Noted bro. Not sure about the increase in interest rates. At how much should we look at? Totally no idea on.this.

This part icemanfx is expert.

For reasons, foreclosure is rising.

How many grr work? If rental demand is strong, developer could become hotel operator.

Noted with thanks

If u take A, we might be neighbors hehe.
Dont take the package with the devloper. Youll be paying 30k more, and could miss out on getting higher returns.

This post has been edited by Musikl: Jul 16 2018, 10:50 AM

Just curious on how you manage to get 2 loans of very differing amounts (320k and 420k) approved by 2 banks at one go?
Unless your salary is high enough for both the properties. As far as I know for multiple loans your loan amount should not be too different to minimize the risk of loan cancellation.

Take both loans, as long as you sign both LO at the same time and get ur loan executed on time, then u r safe.

Housing loan is usually easier. My agent usually do 3 to 4 units 1 shot, didn't seem has problem before. 2 houses is sap sap sui

can ... as long as the loan has not accepted in ccris, it's still consider 1 loan only.

Surely bro. I will go with property A. the banker for this property cannot kawtim. Tried to arrange with him to accept both LO together in the system at one go but this banker refused. He said is either both loan will be canceled or my loan for property A will be off since will reflect on my ccris.

But the banker for property A cannot kawtim. He said he won't accept the trick. Don't want to argue with him also. I'd go with property A. Have to ditch property B. But dunno if can get back the deposit for booking..

so lansi the A banker, u shudnt let him know at 1st. if I am you go apply for prop a with diff bank again.

which bank u apply for a & b?

Akasa Cheras South?

iirc if it becomes NPL the mortgage officer will be questioned.

that's his problem.

That's why he refused

Only 2 resi properties not worth the risk.

If you compress loan more than 2 above.
Mean 3 units or above.

Go ahead kamikaze once in a life time. Either you made it kao kao huat or brankrupt lelong leg pekak straight straight.

This post has been edited by HELLO HELLO: Jul 17 2018, 12:19 PM

Ha ha... kamikaze... I've tried that before. 5 props within an 8 month period....all with cimb. With the lowest price first till the last prop being the highest. The last loan was rejected by cimb without even processing.... excuse was 'due to aggressive buying'... finally had to take the last one with Citibank. But all 70% for residential and 80% for commercial la. So no hanky panky all straight forward.

This was how subprime was formed.

Mean cimb stock price likely to drop further and stay depressed for extended periods.

This post has been edited by icemanfx: Jul 17 2018, 04:39 PM

can your salary afford both? if yes, just sign