My friend plan to buy a second hand landed house via agent.
I listen to his story and want to know about few things.

1. If he is not able to get 90% of home loan from the bank, the agent will seek the seller permission to mark up the price so that I can get about/close to 90% of the home loan. The legal fee due to mark up of selling price will be refundable by the lawyer (as the agent will add clause to this) but the stamp duty is not refundable and he has to bear the legal fee (less than 1K) of the seller.

Is this the normal practice and anything my friend should take note on?
Is the agent will help my friend to seek for home loan, just like buying a new house?

Other fee will be 3% booking that will result in 7% balance for the down payment, valuation fee, SPA, MOT, legal fee on loan and stamp duty on loan.
Balance of the purchase price not cover by home loan require payment to seller within 3 months time.

The agent said the bank have to disburse loan within 3 months + 1 months upon signing spa.

Any fees/charges left out?

This post has been edited by rocketm: Nov 28 2021, 07:42 PM

Markup is normal.

Bank also will send their valuer.

If can’t loan full, take other side loan, dont complicate the pricing.

Do you mean choose not to make up the selling price and consider other loan like personal loan to cover the amount not cover by home loan is the ideal choice?

Does taking personal loan will be approve by the bank since the bank will know he has to service the home loan.

How much the gap not covered by bank? Dont over inflate your loans, dont follow what gurus said.

Ask for discount from seller?

Because if bank decide you cant afford 90% loan, that must be for reason.

Sometimes renting is cheaper than buying. Rent just mere cost of loan interest, but buy means you might endup paying double of renting cost.

But try not to inflate the loan and complicate things.

When I heard mark up from my friend, I feel something not right.

Thanks for the advise by the way.

They said that justify the price of the house to be marked up. More commision for them as well. This all games guru never tell. Sellers are desperate to make the transaction, this will stay for longer term.

Firstly, why are you afraid or shy to say you are buying a house ?

Now coming back to your question ....

The purchase price and income doesnt match ....meaning the property price is beyond what you can currently afford.

Even if you mark up, it doesnt make much different to the loan because is limited to your income eligibilty.

If your income qualified for max 500k loan, no matter how much the mark up price, the loan is still 500k.

Loan eligibilty is proportionate to income and NOT property price. If you want a higher loan, you need to increase your income or buy a cheaper property.

This post has been edited by mini orchard: Nov 28 2021, 09:30 PM

It is not me to buy that subsales house. We have the conversation just to have some ideal about the market and buying experience from others.

I have the interest to buy but not now as I am not ready yet.

Thanks for the info though.