Depends how much you want to loan from recognised market value. I knew few associates that took loan from Public Bank although they are just some roadside sellers buying properties to the tune of 4Mil, but loan about 60%

This post has been edited by recyka: Aug 16 2021, 05:38 PM

If your rental have included in income tax then should be yes

Possible, not cannot. Cos it's an income and as you said your props are not financed. Only that you're in a high risk category, subject to approval je.

Stuck

If they have 300k to be stuck in the bank, why would they need to borrow 100k from the bank

I am not sure of your reasons in wanting to buy the property but if you can wait after securing a job, your application will be made easier. By then, I believe many bankers would want your business

Banks risk appetite towards their loan borrower changes with time depending on the "security' offered.

The rental market is very volatile now. Many tenants are out of job or have their salary reduced and businesses suffered losses to continue paying rent.

Giving out a loan is not an issue because is secured through a charge on the property. In the event there is a default, bank can proceed to auction it

Many banks are now worried that once the moratorium ends, many properties will go under the hammer.

Unless borrower can convinced the banks other than auction, how can they recover the loan in a default in an easier way without further action with bankruptcy

This post has been edited by mini orchard: Aug 16 2021, 02:55 PM

Sorry to say answer is no if your source of income is rental income only. From bank perspective rental income are not reliable because there is risk of your tenant might fail to pay their rental and when this occur you will have no income to repay the loan.

All type of income is a risk to banks. One can lose his job like TS due to retrenchment or business closes down due to incapable of keeping it forward financially.

For a 500k property, if borrower wants only 250k loan, is doable. If 450k and if borrower can have second income like a joint borrower's income name is also doable.

So is all about mix and match.

Banks dont earn interest when money is sitting in the safe.....is cost to them. As fast as the bank wants to lend, it must also be prudent.

This post has been edited by mini orchard: Aug 16 2021, 03:37 PM

Yes that why alot sale staff say very stupid . A bank is doing this and interest rate 10.X% lagi topkek , they ask staff to push this deal topkek

Advice from the expert:

Banks look into regular income first then only consider the auxiliary income. some banks take 80%, some banks take 50% from the rentals as income. some banks apply a capping on the rental incomes with reference to the regular income, like a maximum of 50% of regular income )

1) Income derived from only rentals?
likely fail. (i wouldn't say 100% but 99% sure it will fail, unless you are declaring the incomes from an investment holding company where you draw a regular salary/ director fee from each month)

2) banks prefer employed personnel rather than business person. EPF contributors will be considered first

In conclusion, very slim chance.. btw, if you have sufficient financial muscles, try applying for the loan as a High Net Worth person, you may get a green lane.

Is not stupid.

Many wanna be borrowers have no credit history and banks are reluctant to lend them money. They need to start from somewhere.....hawkers, 'self employed' etc.

They cannot be buying a 2mil house with cash.

Illegal money launders convert their money this way or buy over loss making companies to make their 'money' legal.

Simply put it this way .... they are borrowing or buying into credit worthiness assessment.

This post has been edited by mini orchard: Aug 16 2021, 05:05 PM

Banks will lend to anyone without high risk and good credit score. Doesnt matter employed or in business.

Is of no use to keep excess money in the safe.

Similar, customers only place money in banks they 'see' is safe.

This post has been edited by mini orchard: Aug 16 2021, 05:40 PM

Self employed all use income tax filing to get loan. Bank got AML la

Not all self employed file taxes.

Eg...

Open fd 5k, apply credit card limit 5k.

Accountants are engage for a reason.

This post has been edited by mini orchard: Aug 16 2021, 05:30 PM

yes and no. depends on banks. in general, if you are a business person, go to hxb. if you take the same profile to other banks you might be considered differently. you can try if you dont believe it. DSR and scoring all different.

I am one with 3 banks.

Of course all have their own scoring criterias.

This post has been edited by mini orchard: Aug 16 2021, 05:47 PM

erm.. i am not too sure about your previous comment, sir. But, being in the position and being in the business for more than 10 years, I am sharing my insights to the TS.

I did not say a business person cannot get a loan, I was pointing out the fact that the employeds are preferred to the self-employeds, according to the bank book.

And congrats on getting your loans, you can be the next loan guru now

Firstly thanks for your compliments.

Why do banks create a business loan department in the first place ?

Bills of Exhange ..... Letter of Guarantee, Trust Receipts, Overdrafts etc are all business loans ! for Sdn Bhd and Sole Prop


This post has been edited by mini orchard: Aug 16 2021, 06:00 PM

Banks have different distribution channels.

Individual financing and business financing are 2 diff things.

TS is referring to a housing loan, which is normally under an individual name.

Your business loan is further split into different segments and serves different purposes, such as Corporate financing, SMEs, to name a few. Your ODs, LGs, Working Capitals etc are for businesses. Is there any relation to TS's housing loan?

No doubt, SME channels and Mortgage Lending Channels both also offer property financing. But there is a clear distinction on which channel to go for, say business as owner or individual as owner?

You can use your business income to derive as your personal income but you cannot use your company to be the chargor for your individual loan.

If sole prop but got contribute EPF and draw monthly salary can be considered?