I would like to apply for housing loan refinance. currently i owned a house with market price RM180,000. current outstanding loan is RM45,000. Credit card debts RM25,000 with few times of delay payment of 2 months but already on track now. Is that possible to apply for housing loan successfully with RM110,000 from a bank. if not, please advise

Since this topic is here in Finance sections, let me ask you this.....why do you need to refinance with more debts incurred?
Are you going to use that additional money or new debts incurred to earn more money out of it, i.e. leveraging?

Anyway, to get back to your root question; it varies from bank to bank and I don't think anyone can give you a definite answer. Best is still approach the bank for consultancy.

I used to have CC debts of 15k too.....but slashed it down to near 0. Took me 3 years probably. With tough effort.

Hi bro...currently bank is much concerning the applicant cash flow status ....means tat all ur short term debt will be the 1st consideration frm bank....for example...ur hire purchase ? ur credit card ? ur mnthly balance of ur savings account...ur overdraft....u mnthly transaction is ur account active o nt....tat's the consideration....

for example...u going to borrow 110k...mnthly installement is rm1k...hw bank goin to trust u can pay the installment regularly even u cant settle ur credit card mnthly....another thing...if ur mnthly savings account or persoanly current account balance owez near 1k or less than tat...hw bank goin to trust u can pay the installment since ur savings account balance not more than 1k after deduct all the expenses...

above is jz my comment and advise frm my personal financial consultant who work in maybank...jz for ur reference...thanks...

UNLESS U CAN STATE OUT WAT U GOIN TO DO WITH THIS 110K...if u r starting a business....u can apply business loan instead of refinance ur house...bear in mind...interest depend on ur bank...hehe~show a good proposal for them...they r owez willing to help u

Borrow Peter to pay Tom, slowly snowball till you torn.
I hope you're borrowing for big-ticket consumption.

most above comments do not help much, so here goes ....

you should refinance with a lower rate of RM 70k, 45k goes to house and 25k to clear your Credit card debt.

AIA, ING etc should have some fix rate offer of 5.99% or lower. If your current house loan interest rate is higher than that, then yes you should change.

Do not go for another bank because current BLR is 6.75%, which is quite high compare to 5.99%.

DO NOT refinance 110K, the fact that you have Credit Card debt means you are NOT ABLE to manage your finance properly, so getting 110K will only make you use more and at the end, you owe 110K instead of the current 70K, even though interest rate is lower but if you owe more debt then you are still in deeper trouble ....

hope thi s helps, refinance a lower rate for 70K !

CC rate is 15%, or lowest at its 12%.

good luck dude ...

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Added on April 9, 2008, 10:18 amactually don't ask bank for advice, they will tell you they know exactly your situation and they have the best package for you, they either don't know enuf or don't care if you are digging a bigger grave, as long as they get their commissions and you sign a form that you agree not to raise dispute later on ....

This post has been edited by mtsen: Apr 9 2008, 10:18 AM

louise and mtsen did say some sense and please consider about it.

one thing to add-on. bank loan usually offers rate in a different way against ING/AIA. so.. they might offer a BLR minus thingy to counter those loans offered by ING/AIA etc. So let say current BLR is 6.75, if they offer -1.5, your current interest rate is only 5.25. So it depends. Do check around.

Ok..Current market value is RM180K.

How long have u been servicing your loan?

Credit card debts depending on bank varies. Take example Citibank(I previously am from the mortgage dept) We calculate 30% of your credit card limit if not mistaken. They dun calculate how much is left in the card but the limit.

That's why i started off with asking what TS wants to do with the extra money?
Would he be digging his own graves....?
I meant if one doesn't have any further use of the extras, why further burden oneself with additional debt while RM45K would eventually be of lesser debts.

Anyway when I meant to seek advise from bank is basically to ask him to check whether or not he qualifies because of the RM25k CC debt and missed payment. That's the only way to be sure if TS decides to really go for that refinancing thoughts.

I don't want to start a new thread for this, sooo ...

With a yearly salary of about ~rm50k, what is the maximum loan amount I'd be able to get for a housing loan?

What about yearly salary ~rm50k + another ~rm80k yearly salary of guarantor?

With rougly RM4k/month, your maximum monthly installment is RM1333. You loan amount will varies depending on your loan tenure.

sorry for waiting...i should have told u guys earlier on wuts the purpose of borrowing the money :
with the RM110,000. first thing i will settle my credit card Rm25,000...compare to cc interest ..i think its worthy since the housing loan rate is much lower than 18%...second : i wanna use the remianing cash RM35,000 to further study.....currently i might hav the problem to settle 4 cc cards ....thats y i wanna lower down my monthly instalment instead of paying 4 cc minumin payment which is much higher.third : my current housing loan interest rate is 7.8% ...current rate most bank giving now is much lower..saving interest....i understand u guys' thought not to digging hole to bury myself....or else u guys have any better suggestion...my main concern is minimise my monthly instalment n consolidate my 4cc debts into one...lower housing loan rate & extra cash for further study...i wanna further study becos for my current situation i wanna earn higher monthly income in future to pay back my housing loan asap.

This post has been edited by triple5soul: Apr 11 2008, 12:46 AM

Further study? Part-Time or Full? IF Full, who is going to pay the loan?

Refinancing is a viable option provided you know what you are doing. Don't fall into those Helpful Sales Person's talk.

much available option is get personal loan rather than refinance the house all over again. It's much more cheaper, which could either be 2% or less refinancing is a whole lot of hassle inclusive of the lawyer fees and documentation.

With interest rates trending lower, it is a good time to review, restructure and refinance your existing loans. There are several good reasons why you should switch loans to a new loan with lower interest rates;
1. Lower your monthly installment payment
2. Debt Consolidation
3. Using the Existing Equity in the Home
4. Shorten the term of your home loan
6. Reduce the interest you pay over the life of the loan

The important that you save or benefits doing refinancing. Do your own break-even analysis between long term savings and refinancing costs to make sure you are really worth to do refinancing.

While it is important to analyze the savings versus the costs, it is equally important to take into account the history and future of your home loan.

If you want to find out how much that u can save from refinance, email me at beellion@yahoo.com or call me at 016-2006112 (Ms.Tan)
Free Consultation for REFINANCING. I will do the analysis for you, make sure you know what you are doing.

Sori if this is off track but these mortgage deal from insurance company will require the borrower to be a policyholder; so they MUST buy a lifepolicy for the insurance company in order to qualify right?

hmm
comparing personal loan with refinancing, indeed you are correct, TS would need to incur further lawyer, legal, proc fee etc.

but personal loans may not provide the competitive rate compared to housing & credit cards reducing balance.

more over, with his current situation, assuming his monthly repayment is prompt.

i think most of you guys forget bout 1 factor:

his current monthly commitment vs his monthly income.
that would affect his chances of securing a loan as well.

he sure really take one step at a time though.
but i do think securing a refinancing would be easier than personal loans.

This post has been edited by ahnien: Nov 25 2009, 11:45 PM