Hi all bankers and sifus,

I’m with my girlfriend trying to get loan for my first house. We plan to buy double storey KL.

Property price: 900k second double storey
Loan:hope to get 90%
Credit card: clear off every month no outstanding
Age: 28(me) 25(she)
Year of our business: 2year plus
Net income:
Enterprise profit
Year 2019 - 99k - rm4200 monthly profit /person
Year 2020 -135k - rm5600 monthly profit/person
All sale and expenses got transaction in our account
We also got submit our income to LHDN for year 2019&2020
Monthly saving around 4k - 6k
Occupation: morning market hawker
-we operate our business under our partnership enterprise
-profit by sharing in business enterprise account
-ssm 2year ++
Commitment :
For me: ptptn rm250 /left 13 year

Every month clear no outstanding
She : no commitment
Marital status : single
Currently : rent house rm1500 per month

Is our profile able get a loan for our 1st house purchase? What would be the loan margin and loan tenure? How much we need to prepare in order to buy second hand double storey with price 900k?Thanks for the advice

It is big chance to get 90% loan?

Your estimated profit/person for Year 2021 ? Banks are interested in current figures. Past figures are for comparative purpose.

You didnt mentioned about self-contribution to EPF......which will help in your evaluation.

Based on your joint profit figure of 10k , an employee borrower with the same salary will qualify.

Most likely can hit. But it depends on how the banks rate you in the current climate. Like what mini orchard mentioned, your epf contributions will help too.

But since its a subsale -

normally you will have to prepare the upfront (10%) for deposit, then stamp duty fees etc (I think stamp duty would be around 20k+?)

Next, renovation fees / clearing fees / defect fees etc. Since its a double storey I'd assume a full reno / ID would be done so another 100k minimum.

So the rough estimate for now - around 200 - 250k?

We contritribute to EPF but by one time rm5000 for each of us in 2021

Do monthly contribution to show 'consistency' of business income.

I plan to purchase property at June 2022
So start from Jan 2022 I contribute rm300 monthly to epf got improve for my housing loan .
When apply loan ,bank got request us to send epf statement for self employed borrower ?

The bank can requested for any relevant documents of borrower to process the loan.

Any documents that show proper financial records will help in the approval.

This post has been edited by mini orchard: Dec 25 2021, 08:57 PM

That’s really brave. Committing to a 810k loan based on rm 120k nett annual revenue. Firstly make sure the property is really worth rm900k. Don’t ever rely solely on what agents tell you. Do proper research on recently transacted prices. As a property owner myself - I have to admit it’s a really really soft market. I just offered someone 25% off the advertised price for an apartment unit - initially the agent/owner said no- but after a week have been calling me to conclude the deal, from 340k advertised price to 250k.

No choice
I work at this area I must buy at here easy for me
I need to prepare food so double storey suitable for me
Hard to negotiate price
Some property once we late/still thinking
Other ppl already buy

What’s the rental in that area?

People buy properties for various reasons and not solely based on rental income guide. As long the property can generate income other than perceived rental, it suffice.

No one can buy at the lowest nor sell at the highest.

Property transaction is localised. Soft property prices may not be applicable to every location.

One transacted data doesnt represent the whole country.

This post has been edited by mini orchard: Dec 27 2021, 07:36 AM

Mate don’t need to be judgemental. My question was what is the rental in that area. I’m just curious.

What do you mean by one transacted data representing the whole country?

Generally market is really soft.

This post has been edited by Thasmita: Dec 27 2021, 06:48 PM

I am not being judgemental

Your answer is not relevant to what he is asking.

If this is an exam question, sorry ..... you failed.

Here’s 20 cents. Go play far far.

Not likely to get 90% with that property prices and your incomes.. Maybe 70-80%

This post has been edited by LuckyBai: Dec 27 2021, 08:19 PM

It hurts ... sad.

why can’t get 90% loan?
We combine income got 10k
Monthly loan payment only 3.3k
Our monthly saving above 5k per month




This area rental around 1.6k for double storey

Banks right now are still extremely conservative with lending, especially with self-owned business with F&B/retail/hawker as these are very dependent on human traffic (read: very susceptible to effects of pandemic and poor economic conditions) and consumer sentiment. With the likelihood of raised interest rates soon, they are likely to reduce the loan margin offered and/or offer higher interest rates. Chances are not high to get 90% for you and your GF's case, especially without a marriage cert

Assuming 90% loan without purchasing MRTA, at 30 years tenure with 3% interest rate (average lower rate that's offered by two of the lowest rates banks, Public Bank & Maybank, most other banks are higher), that'll be a little over RM3.4k/month repayment for house price of 900k.

To be safe, best for you to prepare at least 20% of purchase price on hand, not just for downpayment but for potential renovations as well.

You should also enquire directly with bankers to get potential chances, as each bank have their own criteria and strictness. Some banks are notoriously strict unless you're longtime existing customer, some very cincai and happy to give approval. Each bank also have different rates. These kinds of policy super hard to get on online forum because considers p&c biz info.

Are you prepared to fork out these? The money from your savings etc?

If you don't get 90%, then you will have to fork out even more.

max can pay for 15%

Approximately 14.5% of 900k needed for upfront legal+stamp duty costs including downpayment of 10%

bear in mind, this is just legal fees and stamp duty, not including any miscellaneous fees like loan disbursement (a few hundred), MRTA/MLTA (about 5 digits cost), agent fees etc.

cost of renovation and repair for subsale house is another problem too

This post has been edited by DragonReine: Dec 30 2021, 11:41 AM

In the eyes of the bank that 5k is not alot especially for 2 people combined.
If this business fails basically nobody will be paying the loan. Because both of you are in the same business and only have extra 5k which is terribly little for 2 people.

When you mention above, no choice have to die die buy this house it already shows your plan.

You have the choice to rent but u are fixated in buying that house.
Especially when the rent only 1.6k but Ur loan payment if u buy will be 3.5k not including the 16% u need for subsale administrative fee and dp.

That 16% is 130k rm which is your whole years profit if not more

No our annual income around 200k
This only what we submit

I want buy but I scare loan not approve cannot get back my booking fee
I got around 200k cash
I looking for bank loan for 85% for 950k
It is dangerous I pay for booking fee and submit loan ?

Usually booking fee is refundable if your loan is not approved. However:
1. Some vendors or developers may need loan rejection letters from at least 2 banks.

2. If banks are only willing to loan you < 85%, is that considered loan rejection? You must ask the banks about this and see how they can "help" you. But it's all verbal promise.

If I were you, I'd talk to the banks first. They'll be able to give you an estimation. Of course it all depends on your profile and repayment patterns.

Now adays you can go to bank and submit all the documents. They will let you know what's your loan approval limit. So you don't need to put deposit first. If I'm not mistaken it's pre loan approval.

Maybe you can do that before you put deposit if you are worried loan does not approve.

assuming subsales, you may only get 80% loan or even lesser at 75%. plus your 10k income, is it consistent for the past 5 years? Banks are very strict lately to be frank with you. before MCO, i can get a house loan easily within 7 days. Lately i just secured another loan requiring 14 days! with all sort of documents in which i never submitted in my previous mortgage loan application.

This post has been edited by mypalm79: Apr 6 2022, 10:00 AM

Which bank? HLB?

Maybank, public bank, Hong Leong also.... They asked me for other docs and even FD account statement... For the past 15 years I have been securing loan without FD statement. Just normal savings will do.

some subsale even can get more than 100% with markup loan, as long the bank value higher than the selling price.

now market very soft, easier bargain till below bank value