Hi all, I have never bought any house before so I am not too familiar with how the loans work as compared to new property. But I was wondering normally if we buy subsale house, the maximum loan that we can get is it different if its your first house vs 2nd house onwards? Thanks in advanced.

1st house and 2nd house u can loan up to 90%.

3rd house onwards loan up to 70%

Thanks for the reply! Is this like a standard among all banks or does it still depend on the bank/other factors? Also for joint name loans if one is 1st house and another is 3rd house can they still apply for 90% loan?

Depends from bank to bank.

If joint loan, banks will only provide 70% for your case

I see. Do you know what criteria do they normally see to decide whether to give you 90% loan or not?

So for joint loan they will follow the person with highest number of property? So if both loan applicants are also 1st/2nd house buyers then they can get up to 90% loan right?

Share some example for you

S&P RM700,000, you're required RM100,000 cash for all the expenses such as downpayment, lawyers fees and etc.

The above cost is not included the renovation cost.

Moreover, the loan amount is about 92% (90% plus insurance MRTA / MRTT depending on banks)

First & second house are able to loan up to 90% and 3rd house exceeding RM600,000 is able to loan up to 90% (from previous budget 2020 not sure still valid) else will be up to 70%

This post has been edited by BlackPen: Dec 30 2021, 04:08 PM

70%/90% based on S&P and Bank valuation, whichever lower.

When you say 70/90% are you referring to 3rd house onwards?

The criteria based on existing mortgage under one name, so long there are 2 existing mortgage under one name then the 3rd one cap at 70%

unless the property is above 600k. at least for now.

https://www.imoney.my/articles/buy-or-sell-...rty-in-malaysia

anyway for any house purchase at least for subsale.. prepare 18% of the purchase price. 10% for down payment. 5-6% for snp. bank legal fees another 2-3%. most back allow your to at least finance the bank legal fees though.

1st, 2nd House max 90% loan, 3rd house onward max 70% loan..........these term are set by government, un-negotiable

Somebody use "mark up loan" tricky to get higher loan

Your income and commitments of course. Read up articles online for more info. i can only spoonfeed u so much

Joint loan they look at both applicant info. For example, if Applicant A got 2 house loan already, Applicant B got no house loan, the loan application will still be capped at 70% as Applicant A is applying for third loan now.

It is not the number of property, but the number of housing loan that the person has. If this is the 1st/2nd housing loan for both buyers, then can get up to 90%.

If valuation of the property is higher than your agreed purchase price and the seller agrees, you can mark up your SPA price to get more loan. But of course, have to pay higher stamp duty also.

Ok thanks this clarification makes things clearer. All the while I thought its based on the property you own. So theoretically does this mean if you sell your existing property first to clear off the loan before going for the next one you will be always eligible for 90% loan?

I see. So best case is 15-16% if they allow you to finance the bank legal fees right? Also just curious is there any options available to finance the downpayment and/or snp for short term?

I have actually heard of this mark up loan but actually how does it work? Since first of all still need to depend on bank's valuation right? Also is there anyone that has done the calculations on how much extra do you pay by doing this since the seller needs to pay higher capital gain tax etc

nop.. if you need to finance it your not ready for it.

don't do anything like getting a personal loan for it.

So if the valuation is lower then there is no way to mark up the SPA price right?

yes.. however for now if 3rd property above rm600k you technically could still get 90% if yr credit score is still healthy.

How much you can borrower is not the 1st criteria.

How much is 1st House applicant salary and other loan commitments ?

Similarly, how much is 3rd House salary and other loan commitments ?

How much is the property ?

It can be 1st house for both borrowers, but if other loan commitments are high, your wont get 90%.

If you are relying on general answers to make a purchase, I advise you to reconsider.

Dont get me wrong of course I wasn't expecting to pay nothing upfront i just want to know what are my available financing options so I can plan what kind of house that I can afford for subsales since things arent as straightforward compared to new launches.

And definitely wont go for personal loan since the interest is crazy high and there is hardly any investment that can cover that kind of interest

I see. But for 3rd property 90% that is a special exception made recently right? So if the government remove it then it will be back to 70% non-negotiable? Just asking to have better understanding. I doubt I can afford to have 3housing loans at a time

yup i think when things get better then it will be revoke.

Maybe I forgot to add that this is assuming the applicant(s) can afford the loan i.e. DSR <70% after including the house loan and all commitments. Because I am asking to understand how the loan works in terms of down payment and fees etc and see how it differs from loans for new launches so will want to simplify things here to make is less complicated.

This post has been edited by berrycoo~: Dec 30 2021, 07:07 PM

Sorry , what I mean was , the bank will take the lower value of S&P and bank valuation. Depending whether its your 1st/2nd or 3rd hluse, 90 % or 70& of that value.

Many would think that they can jet up the S&P price to get more loan but you cant.

Ya, the banks will need a valuation report from one of the valuers in their panel. If you can't find one that will give you higher valuation, then cannot mark up SPA price.

To TS, sorry for hopping onto your thread but I am also in the middle of buying a subsale. Paid 3.18% last month but the owner has been delaying his part. Today, received a call from agent.. who said the seller backed out.. what do I do? The agent recommended additional fee for LOD.. but I dont even know if I should move forward. Please share your thoughts..

In an agency letter for purchase and sale, ......

1. If the purchaser decides not to cont the purchase or failed to sign the SnP within reasonable time after few reminders from seller or agent, then the seller can forfeit the deposit.

2. if the seller decided not to to sell after signing the letter, he has to instruct the agent to refund the deposit and to pay additional amount equivalent to the deposit as compensation to the buyer.

The agency must return the deposit and if they failed to do so, you can report the case to LPPEH. They will be called up to explain and if they still fail to do so, then the agency will be delisted and not allow to carry estate agency work in future.

In addition, all estate agency must purchase an indemnity insurance.

If the seller refuse to pay the purchaser compensation for breach of contract, then the agent cannot fo anything. The purchaser have to then sue the seller personally.

This post has been edited by mini orchard: Mar 9 2022, 02:49 PM