There are so many banks to submit an application. If the final aim is to get the loan, paying a slightly higher interest shouldnt be a concern.

Unfortunately that's not going to happen if the market is small and the bank has no interest in their strategy to carve out additional space to cater to these customers. Again, bank is the best in calculating their profits. They would have calculated the opportunity costs of not accepting these customers if they know their numbers are low in the market and deemed acceptable to lose this business. While you are willing to pay slightly higher interest, the bank is not going to spend additional costs in order to earn that marginal extra interest from a small pool of people in the market (back to their strategy)

Even if they want to accept, that will fall under their private or high networth banking divisions which will have a different playing field. That too, every banks have different interpretation of what is a high networth to them.

Are you referring to all banks ?

Different in what ?

I'm referring to banks in general. These are all part of business strategy. For example, If Malaysia is market is deemed not big enough or the market only consist large type of customers segments which they want to target and they prefer not to venture into certain small customer segments, then yes, you won't be able to get your loan approved.

Likewise, there may be some banks that may want to target these customers knowing that these customers are not being targeted. Again, I don't know what's the availability in Malaysia now. If you find that your applications are not being accepted and any of the major banks, then most likely that is because you are the type of customer segments they are willing to forgo even if you are willing to pay higher interest rate.

My point is, while risk profile is important, theres also element of business strategy. You may be willing to pay high interest to compensate your risk profile, banks may still be unwilling to accept your business because you are just not their target customers.

Thats the reality.

If you dont know this, I dont know why you even komenting here.

Then there can always be exceptions.

There will be. Hence why I said you should apply all banks and IF the results you get are all the same I. E. Banks don't accept, it only means that there is a gap in the market and no one is catering to this customer segment.

Then again, is this customer segment big enough in the market to warrant someone to be willing to target them?

So yeah, there will always be exceptions. But it doesnt mean there will always be a solution. Even if there is, it doesn't mean its profitable enough for anyone to enter the market.

That's why I said this is the reality. Its not just about your risk profile and your willingness to pay more interest.

That is why there will always be loan sharks because banks will always have the type of customers that they are willing to forgo, for whatever reasons, and loan sharks are picking up these gaps in the market.

you borrow housing loan 30 years....

your rental income can consistent 30 years?

logic tell you not.

I do. After deducting all costs I still have to pay taxes for 80% of my rental income.

I already know most people avoid paying taxes but somehow I'm still disappointed to read this.

I beg to differ. Its actually the other way round. You pay taxes on the money you earned legally. You don't pay it to make it legal, that's money laundering. Hence why your second statement about AhLong actually contradicts your first. If taxes are created to make money earned legal, why is AhLong not allowed to pay taxes on their illegal money?

Also, you are looking at this issue from a very simple lense. You are making a simple comparison between a person who can find a new job after losing one vs a landlord who can also find replacement tenant. That's a single lense view.

We always talk about bank risk appetite, that appetite is derived from a number of factors not just 1 factor.

Age, income, or even health all contributes to that calculation. Hence, the key word is PROBABILITY.

Using your example above, What is the probability that a person, at a age of xx years, who loses a job at that age, aren't able to find a replacement job, vs what is the probability of that landlord at the age of xx years, relying solely on rental income, to find a replacement tenant? Bear in mind, if a landlord relies solely on rental income, most likely he or she is at advanced age, and also whether the property is fully owned or mortgaged.. Etc

Again, this is just very basic view. The calculations are more complex and comprehensive depending on what risk factors the bank apply.

My logic tells me u can have consistent rental income for 30 yrs no issue …. That’s one of the reason why ppl buy property to put up for rent n take a loan of 30 yrs ….

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?

Mind sharing ur total gross rental income that ur earning per mth ? Since u pay taxes …. Ur a rare diamond in the haystack …

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?

About 2.8. I wonder how you managed to get 5k with 2 properties?

Yes, banks can give out loan based on rental income, I was one of them. But I regret using it to buy apartment, there are too many apartments around, it is difficult to sell or rent.

The rent doesn't cover the monthly bank loan.

The rental that I get is only rm 1100 for fully furnished, how to survive like this?

About 2.8. I wonder how you managed to get 5k with 2 properties?

its 3 properties.

All fully paid?