I am receiving mixed answers on this. Currently, I own two properties: Horizon Suites(semi-flexi loan) and Union Suites, which I purchased through the Maybank HouzKEY program. I am considering buying a third property in the near future. Am I entitled to a 90% mortgage loan if I plan to purchase a property with a residential title?

This post has been edited by TaintedOnes: Dec 11 2023, 10:34 PM

Wow both houses also need houzkey. Better look at other investment vehicle.

+ 1

TS plz stop now while u can

2 is more than enough liao if u need to ask for 90% better use that moni do other investments

Sorry, What is houzkey? Mentioned there Maybank, something new in the market now?

This post has been edited by jojolicia: Dec 11 2023, 09:26 PM

It's one of the first "Rent 2 Own" programs: https://www.maybank2u.com.my/maybank2u/mala...me/houzkey.page

1) If you needed Houzkey to buy investment-grade property, you're already on the losing curve and not maximizing profits as you should for investment with the high overall cost of Houzkey.

2) If you need 90% loan to buy a 3rd property, you're REALLY not managing your cashflow property.

3) Technically yes, you're entitled, the 70% max financing only applies to the 3rd RESIDENTIAL TITLE loan when you have 2 ONGOING RESIDENTIAL TITLE LOAN. Since Union Suites is a SOHO, you should not be subject to this limit. But TS really should rethink where you're putting your money's worth, if what you're buying is for investment, at the current economic state and property value.

This post has been edited by DragonReine: Dec 11 2023, 09:46 PM

I edited my original post as it misled some people. I only bought the second property with HouzKEY.

what is the fuzz abt HOuseKez?

What makes you think getting 3rd loan can get 90% loan?
First one paid off?

US is Commercial HDA thus under Resi quota

Thanks for the info. I'm contemplating purchasing a third property for investment as I'm currently working overseas. My cash flow still enables me to buy another property for less than 1 million. If I can secure another 90% financing, I hope to look for some properties with good rental yields.

Because some agents are saying I can still get another 90% loan, whereas others say it's not possible. If not, then I will reconsider where I should park my money.

how much loan you have got from US? 90%?
On a ...residential Loan? or Commercial Loan Rate?

I see. Thanks for replying 👍

Should buy industrial properties rather than residential properties as an investment

Are you buying houses for the sake of it or for investment?
You do know you don't own those houses and you're heavily in debt.

I was briefed by Maybank staff last time. Basically you only rent the house for first 5 years with maybe 50% of normal installment amount compared to normal loan, locked for 5 years, then on sixth year you must choose either convert to normal SPA follow the initial purchase price, or choose to discontinue and return the house to developer and bank. You can also choose to convert the housekeyz to normal loan and spa starting on 3rd year.

Some people prefer this loan due to foresee tight cash flow in first few years after move in, so they keen to start installment later. Some also want to give a try with five year to see if the place really suit them, other is purely for investment purpose, betting that the price will go above their entry price in five years later, if the price rise a lot then they can convert to normal loan and then sell it. If price fall below purchase price then just exit on fifth year. To me it work more like leasing program.

property is not an only way to invest...

both houses tenanted or...?

Thanks for the elaboration, Jingle.

The last part of your last para is interesting. An exit plan too good, any string attached ?

This post has been edited by jojolicia: Dec 12 2023, 02:20 PM

Hmm, is there any misunderstanding in between?
So, if property fall below the purchase price, then can exit? I thought we still need to settle the differences in between.
My understanding is like the HouzKey is like 100% financing and suitable those like do not have sufficient downpayment plus you are on budget tight for the initial years. Thus, during the construction period, you are not required to pay any mortgage fee (interest still incurred) plus only required to pay 50% of the installment for the first 5 years.
In another words, your cost for Mortgage is likely to be higher. Not like after 5 years, you dont like, you can sell it away and no cost in between when property price slump.

i suggest you dont get 3rd property, ur horizon suites rented out yet? that place going to be very very competative..

u need to fight with horizon suites, tangerine suites, bell suites, the chapter (new soho beside olive), alanis... all is small small size unit.

u will need fund to continue the installment and price war.

I refer back to the WhatsApp from banker in 2020, it work the other way round. No doubt total financing cost is higher, because nothing is free. It work like an Option Contract. For example, assuming that time the developer SPA price was 850k and developer gave 15% discount, If I sign up MBB houzkey, first I don't need to pay progressive interest, after VP, I only start to pay RM2000 per mth for 60 mths, or I can choose to convert the housekeyz to conventional loan within first two years but the SPA only can have 5% developer discount, no more 15%, after 2 year the conversion will be at full SPA RM850k until 5th year.

So it is like an easy loan on top of future housing loan, i can be either paying RM2k x24 = RM48k, then borrow another 800k mortgage and start repayment. Or pay max RM2k x 60 = 120k until 5 year maturity, and then either borrow new conventional mortgage with SPA RM850k or choose to discontinue and return the house. So minimum locked rental is RM120k for 5 years, unless convert and borrow new loan before maturity. No need to pay difference if the house mkt price fall below the SPA. The banker also mentioned MBB only provide the program for good project, but anyway it shouldnt be indicator for us.

The banker quite nice, after he found out we bought for own stay and have sufficient cash, he ask better consider conventional loan

Because the RM2k per mth in first five year is like rental and for me to lock the ownership for 5 years only, not for principal deduction.

This post has been edited by Jingle91: Dec 12 2023, 02:32 PM

Yes, it is currently rented out. Thanks for your advice; I will weigh my options before taking any action.

That was a link shared by the banker so I think you can check it from Maybank website.

But remember, it is like an easy loan for 5 years, assuming the monthly payment is RM2k, so total you have paid 120k in five years, none of this amount will be used to deduct your principal. In five year later you still need to get new loan with spa price or return the house.

Noted. I read you and your explanatory post before this.

Option 1, within 24mths, the paid sum can be offset from SPA price, balance for mortgage to take up ownership.

Ootion 2. Pure rental 60 month and a new mortgage (with the then SPA price 850) thereafter, should you want to take up ownership. Your mortgage clock starts here.

Edited

This post has been edited by jojolicia: Dec 12 2023, 03:18 PM

for your case, does it mean that if decided to purchase the unit within 2 years, the 48k rent might assumed as offset to the original price 850k?
so if the decision made from 3rd year onward, the selling price will revert back to SPA price ady?

the person who design this package is quite genius actually

Ya, can say that way, but i think the 5% discount is still slightly lesser than the 48k that the person has paid in two years time.

Yes, on 3rd years will be full SPA price.

But not sure about the legal fee for MOT, seen like developer won't bear if you use houzekey.

Hmm, I think your SA might mislead you. From the PDC, you still need to bear the cost for the difference if the property price drop. Unless the next seller you get willing to pay for the same price as per the SPA.

Eventually, that person did not even get the 5% developer discount. It is merely an offset (48k of 850k) that this person paid by way of 24mths on a deferred mortgage plan (commencement).

The extract <can be either paying RM2k x24 = RM48k, then borrow another 800k mortgage and start repayment>

This post has been edited by jojolicia: Dec 12 2023, 03:35 PM

Unless you can secure a good housing interest loan, then wont it be a better idea to deposit more back to ur principal loan?
Securing loan (if your profile is good such as high pay, debt ratio is low) is easy. The question is whether it is worth it especially you are targeting for investment purpose.
Just look into your current two property, do you feel your current house investment strategy is workable such as property price increased or rent sufficient to cover the mortgage. If not, why go lock yourself to another loan commitment especially the interest rate is on increasing trend nowadays.

Think you need to read again on your own screenshot, it didn't mention anything on the short fall of property price.

What it meant is you terminate before end of initial period, you need to pay remaining portion as per agreed term. So the banker' example is 5 years rental, and if you terminate on fourth year, of course you are liable for the remaining one year rental. The other cost is the maintenance and quit rent or land accessment incur in the "initial period" as per your screenshot. I will take the initial period for my example equivalent to 5 years

This post has been edited by Jingle91: Dec 12 2023, 03:36 PM

Correct, this is different from the normal bridge loan provide by developer with zero interest.

So to me if can avoid, better don't borrow this kind of loan. Feel like enjoy now and pay later.

The flexibility is at the expense of buyer

this loan is best for those who can make decision within the 1st two years.
however,very tricky also. when someone spend so much hardwork and decided to go for the project, end up they wont simply move out also.
then, the 3rd year trap start kick in.

There is a saying, never get yourself knee deep wet if you are undecided to tread across the river.

True. Not feasible at all.
I see no reason to forfeit myself from the original developer's discount from the table to begin with.

This post has been edited by jojolicia: Dec 12 2023, 09:13 PM

FYI, let me share some insights overhere:

Normally, property that under residential & HDA:
1st & 2nd property: 90% loan margin
3rd and above: max 70% loan margin

If property under non-HDA (commercial title): max 80%-85% loan margin

But all above for MALAYSIAN & working in MALAYSIA only.



also, different bank got diff guideline, which:
-malaysian working in oversea (if mnc company & gt 2 years income tax): max 80%-85%, 90% is subject to appeal


(feel free to ping me if you need any help).

Mine was first loan back then 90% resi