Due to covid, was retrenched since last year.... but i do have alternative income from rental of about RM 5K per mth(with tenancy agreement).... but not too sure if banks allow ppl like me to take a housing loan of about 500K to buy a new house for investment?

Contacted a few bankers.... but all don't layan me.... straight up say our bank don't accept client like u! ok lor.... i'll ask around....
Got 1 ask me to join name.... no lar.... this is my prop why wanna join name.... then got 1 banker say i need assets and cash of 1 mil to apply loan... lol

So anyone can advise on how to go about it to apply housing loan using rental as my mthly income?

Is your agreement stamped?
Normally they allow 80% of rental as income but maybe your dsr even with the rental is too high.
Therefore you get rejected cause of high risk cause of no job and high dsr

if i bank owner. i reject too.

Has rental property's loan finish paid?
else in the eye of the bank, it is no considered as your disposable fund.

Why want to take another debt risk with no salary? Genuinely curious.

curious too, probably so call investment

I don't think banks will approve in this case.

If current one is paid up, refinance it.

Take the cash to increase the downpayment on the new property.

However, make sure you know the risks though. Your current rental income may not be consistent. Your next prop may not be cashflow positive until a few months after completion.

It can be used as secondary income, not primary. You still need to have a primary source of income

If the property now is still with outstanding loan, bank will assume the rental will goes toward loan repayment.

How then can the banks consider that rental is enough for another property without you working now ?

those bankers nvr did ask about if its fully paid.... but since u asked....Yes, its fully paid.... total 2 properties.
So technically it should be considered a mthly income... no?

This post has been edited by Afterburner1.0: Aug 16 2021, 12:55 PM

those properties fully paid off.... and i do not have any other housing loan....still consider high risks?

Can if:

1) you have stamped tenancy agreements.
2) rentals paid through bank (statements to proof source of income match tenancy agreements)
3) 6 month (at least) to 1 year of bank statements.
4) banks prefer you have setup property investment company rather than individual but is not totally cannot.

Part 4, im not a prop tycoon... no point setting up a prop investment comp.... unless i got 50 props under me....
Mind sharing which bank accept the above criteria....

In bank eye maybe rental market is shit now since your tenant can balik kampung anytime

not tycoon only need to setup property investment company. it shows the commitment to the banks that yr rental income is long terms not just for this difficult period.
to setup a company cost around 2.5k or less if you buy off the shelf company names + handling fees.

try not so popular banks your luck is much higher.

Can apply if u got SSM more then 2 yr rental can be counted as income. Pre covid time if u got job yr income also need to + 5k from the rental income they say u don't qualify cos no job .
Now some bank are mentally retard dy ask u put FD 300k to borrow 100k with high interest rate , pre covid if bank know I got alot cash they willing to give huge loan with low interest ( personal loan ), few banker told me this.

they no need to ask one, they can check from their end side.
perhaps it is about liquidity issues.

i thought this market is already dead

Can this 300k be uplifted anytime after the loan is disbursed or stuck there until you finish paying the loan?