Hi all, I need some advice about getting a housing loan;

I am trying to buy over my sister's house. The property is under her name. Market price is RM600k. Situation is this; when my sister was paying off the loan, she asked my brother in law for help. What happened was that he agreed to pay half of the loan and when the time of selling the house, the profit is supposed to be split 50/50.

The idea is now that I want to buy and change the name under mine. So the idea is that I get a loan for RM300k, pay for my sister's side and change the name to mine so next time if I decide to sell the house, I will be splitting the profit with my brother in law. So it is like she don't have to be in the picture anymore.

I have already applied to several banks already and one of the bank is telling me the situation;

'Please confirm the SPA price between you and sister.

If SPA price RM660k and loan apply RM300k - you have to proof downpayment of RM 330k

SPA price doesn’t affect future selling price of the property as seller can sell the property based on market value.

You will have a copy of Formal valuation report from valuer indicate the actual current market value the property.'

Right now, I can't provide any proof of the downpayment because of the situation as it was dealt internally between my brother in law and sister. So this mean that no matter which bank I go, I can't get a loan because of this?

Can't you ask the bank what kind of PROOF they want? A letter or something?

A transaction of the payment that the RM330k has been paid down. I told the bank about the situation but they need that proof of the transaction.

1. Is your sister's loan fully settled ?

This post has been edited by mini orchard: Jun 25 2020, 01:35 PM

Ya, it is fully settled by both my sister and brother in law

Is brother in law name endorsed in the title ? Is he a legal co-owner or just verbal ?

Just verbal. The house is named under my sister

Ok, your problem is not complicated.

1. Transfer the property from sister to you.

2. Pay stamp duty and lawyer fee for transfer

3. Once done, approach any banks for financing for the amount required as a new owner. Bank dont need snp or proof of payment because the property oredi registered in your name.

4. Engage the bank panel valuer to confirm market value.

4. Pay stamp duty, lawyer and valuer fee for loan agreement

5. Done

6. Are you sure your brother in law is ok with the arrangement ?

7. Who is staying at the house ?

8. Will you be collecting 50% rental if you are not staying in tbe property?

Do take note that once you are a property owner, you may not be eligible for any govt home ownership promo. Your loan eligibilty for your next loan (car or house) will also reduce unless your income increases. You are also subject to rpgt if you make profit from the sale.

This post has been edited by mini orchard: Jun 25 2020, 05:51 PM

Thanks for the detailed explanation. Will try to follow your advice!