Hi all Sifus..

Currently a 40yr old guy planning to buy a subsale terrace house for own family stay.. House price is RM630k. Am planning to put down a RM130 and get a 25 year loan of 500k

Have a few questions:

1) When it is best time to start engaging a lawyer? Before/after place booking fee with seller? Or before signing of SPA / bank loan agreement?

2) MRTA vs MLTA.. I read some guide says since I am buying for own stay MLTA is sufficient. True? (I already have sufficient life/medical insurance coverage)

3) Would it be a good idea to engage a house inspector to check out the house (the property is almost 10 years old and the previous owner stayed in it before) Possible to have agreement with owner if major defects are found, I can back out of the deal with my deposit?

4) Some online guides advise buyers to get a verbal valuation of the property from the banks before final negotiations with the seller. True?

1) Find 3 lawyers and get a quotation in the man time - usually directly after booking. SPA & LA prepared by your appointed lawyer.
2) If got sufficient Life / Medical and no affect interest rate - no need to buy
3) Yes, but can do prior to booking
4) Check value before putting in a booking - your agent can assist.

Hi may I ask further on this?
The booking fee is paid to the agent right? Is there any risks doing so?

pay to agency, not agent personally

Always pay to the registered agency - not to any individual's bank account that claims to act on behalf of any agency.

Also when paying the booking fee, always stress in the clause that your loan should be fully refunded if loan is rejected AND if loan is approved below 90% (means even if your loan is approved at 89.9%, you have the rights to get back your booking fee).

Thanks for the reminder.
Edit: should be booking fee fully refunded 😅

can explain further more bout #2? not quite understand? if not buying mlta or mrta , then (loan under me and my bf's name) if anything happen to one person, the other still have to pay the installment isnt?

Yes.

If A and B are co-owners and if A bought insurance to cover the loan and if B passed away, A still have to cont paying the instalment. If A passed away, then the insurance will payoff the loan and the property goes to B.

However, A and B can buy 50% or 100% each to cover the loan and if anything happened to either one, 50% or 100% of outstanding loan is covered. Again that depends on affordability if 100%.

This post has been edited by mini orchard: Sep 15 2022, 09:44 AM

If A passed away, the insurance will payoff loan and property goes to B, without B having to service his/her remaining part of the loan at all?

This post has been edited by Human Nature: Sep 16 2022, 11:04 AM

Yes, provided bought to cover full loan amount, If under insured, then it will be pro-rated and B has to cont pay the remaining balance.

if both a and b bought insurance, if either a or b co-owner is passed, left co-owner will still need to pay his/her insurance or just take his/ her partner insurance to cover all house loan and can stop his own insurance payment, right?

It will depends on the type of insurance coverage.

MRTA

If either a or b passed away, either claim will settle the outstanding loan. The surviving party can then terminate his or her policy and claim for a refund of unused coverage. MRTA is a one time advance premium payment.

MLTA

Settlement of claim as mrta. However the surviving can cont with the premium payment and treat it like a life policy or opt to terminate with some surrender value. MLTA is a yearly premium payment.

thanks so so so much for this informative feedback!