Hi all, anyone know how to get 90% loan on 3rd property?

Currently i have 2 property loan,

1) Loan 1 outstanding RM13k, advance payment 200k
2) Loan 2 outstanding RM312k

I dump most of my saving into my 1st loan to save on interest but i do not intend to pay off as this will deplete my saving. I'm looking to get a 3rd property around RM400k, i read somewhere that we can actually combine 2 loan into 1 loan and so still able to get 90% loan for 3rd property? Anyone done this before?

Yes, you can do combine home loan which is call refinance with debt conso with home. However, is depend on ur loan 2 market value.

Let's said ur loan 2 market value is around 800k, then u can refinance with cash out to settle ur loan 1. After that , u can apply ur 3rd property with 90% margin.

I got help my client to process this type of refinance.

my loan 2 market value is around 380k, which means this method is not possible?

If debt conso like what Luis mentioned, it is possible.

Debt conso : 312k + 13k = 325k ( / 380k = 85.5% loan, using second property to refinance)
So loan 1 settled and you may buy the next prop as 2nd housing loan for up to 90% loan.

In your case, there are 2 things you can reconsider,
1. Is your interest rate high or low compare to current rate, if worth to change bank.
2. If you refinance again, you need to repay loan legal fee for 325k loan.

But I wonder why you dumped in 200k cash as advance payment for a loan with just outstanding 13k? The quickest way is, settled the loan 1 bcz only 13k outstanding.

You can use the 200k to settled the 13k redemption and put the balance 187k into your Loan 2 as capital repayment, so you only required to pay interest for 125k portion (312k - 187k = 125k) only and you can still withdraw the 187k anytime.

this actually is an good idea.

settle loan 1, dump all the advance payment into loan 2, then your next property will consider as your 2nd property and you're entitle for 90% loan ady

I believe what he means is total outstanding loan 1 is 213k ?? That's why he dump 200k as advance payment to save interest maybe.

yea, this is correct

Then will unable to do so if market value is around 380k. Cant cash out to settle ur 213k loan.

Let me teach u this way, see if this works.

1) settle the 13k out standing on house 1, u will be left with only 1 housing loan on house 2.
2) then go take a 90% loan for your new house 3 under your 2nd 90% housing loan quota.
3) after completed the above, go refinance your house 1 with a 70% loan and get back your rm200k cash.

Alamak, then totally confusing dy. I also wonder why put in 200k cash.

As advance payment is totally not the same as capital reduction and did not saved any interest at all, I not sure what he means then.

Don't get yourself confused. The ruling is not 2nd or 3rd on loan, its 3rd property ownership.

Meaning to say, even you are on 1 loan but already owned 2 properties under your name, 3rd property under your name, 90% is not permissible for this 3rd ownership purchase.

This post has been edited by jojolicia: Jun 1 2023, 04:01 PM

Bank guideline is referring on borrower ccris record got how many housing loan account. If is more than 2 home loan, the new home loan margin max will be 70%.

Bank is not referring to how many property that u have which is already pay off.

If is under semi flexi loan, advance payment will be recognize by principle deduction and save interest.

i believe TS wan the flexibility of loan 1 RM200k and also getting loan 3 with 90% amount.
so if he settle loan 1, he will be in trouble when he in urgently need to use the 200k

This post has been edited by shaoching: Jun 1 2023, 04:14 PM

Dp

This post has been edited by jojolicia: Jun 1 2023, 04:22 PM

Really, ya kah? thanks for correcting me.
Then i misunderstood the ruling wrongly, its not as in property ownership, but its on 'x-th' ongoing loan facility. Hmmm. Mm

This post has been edited by jojolicia: Jun 1 2023, 04:30 PM

yea, u are right, thats why i prefer not to touch the 200k.

good suggestion, i will look into it

Some of the "guru" will teach these:
1. Convert loan 1 and 2 to your IHC
2. Get loan 3 via AIA, but interest higher
3. 3rd party loan

You are welcome.

u r absolutely right

Yeah. I'm worked at mortgage department in bank for 10 years. Will know the guideline clearly

For option 2, AIA can offer 90% loan for 3rd property?

Then, that's good for Alliance Bank if above is consider advance payment. Got any other charges?

For my OCBC, RHB and CIMB, I need to inform my bank that the repayment is for principal reduction purpose then this sum will be (transferred) to my housing loan account which is under redrawal-able limit and I continue to make my monthly payment. Even my old Alliance Bank loan is same.

30% of 400k is only 120k.
You could use your advance payment to cover that, and use any rebates from the new unit package to get some cashback.

refinance involve cost and additional commitment on your monthly repayment, why want to put yourself at high risk?

plan A, You got 200k cash (i assume it flexi loan la, where u can take out watever you want or put inside to reduce interest)
Assume you dont do any refinance practice , 3rd house 400k only, 30% downpayment is 120k only , you left 80k cash, which is still ok for emergency use. right?

plan B, sell 1 of your house, den you got 90% loan and more cash

plan C, save 13k + 6 month reserve cash, then fully offset your loan 1 (might take 1-3 year), after that baru consider buying 3rd house.

If ur loan is under semi flexi loan and is under conventional package.then any advance payment into ur home loan account will auto deduct for principle and reduce the interest.

I think you can only take loan 1 or 2 with AIA, or refinance to AIA if it is not under AIA now. Then u can take 90% loan 3 from bank.

https://www.propertyguru.com.my/property-gu...-mortgage-58175

Check item 3, in fact a lot of financial institute will offer more than 70% for 3rd loan

u mean by refinancing my loan 1 or loan 2 with AIA, this will free up 1 of my quota on 90% loan from bank?

Yep

How much is the interest? 5%? Or based on loan amount?

Is this a BNM rule or different bank diff rule?

You need to check it out with AIA, But should be same like other Banks, interest mostly base on your credit rating.

This is under bank offer package.

Hi,

Right now my property loan as below:
1st property loan - CIMB
2nd property loan - LPPSA

If I want to buy 3rd property, can I get 90% loan from bank? or else need to apply from other financial institutions?

This post has been edited by soulmixx: Jan 11 2024, 10:15 AM

if your lppsa loan do not appear in your CCRIS record, then you can get 90% for the 3rd loan. However, is depend whether your payslip got show deduction for housing loan or not. If it is show deduction for housing loan, then only can get 70% for 3rd property.