Hi Guys,


I've just paid the deposit for a house at Saujana Utama 3 (developed by Glomac). The property price is 313k and it is still under construction.Would i be able to secure the loan if my gross salary is 4600 and my fiancee gross salary is 2300 + 700(overtime). I'm looking at 90% margin of financing and the loan tenure should be 35 years. The other question that i have is, i haven't confirmed my employment with my current company, will that be a problem since i don't have confirmation letter from the company? FYI i will be joining another company on June which offer 5000 base salary + 600 allowances. Lastly, for property that is under construction, does any particular financial institution have any loan package that will waive the 1st year payment?

Age :26
Current commitment
My credit card =rm200
Study Loan =150

Fiancee Commitment
Car=190
Study Loan=150


Regards

bank looks at ur bank statement n occupation as well, it doesn;t matter if u change job, as long as there were consistent income for the past 6months in ur bank statement + other financial proof tht u hav. the way i see it, ur own income should be just sufficient to get 90% loan.

nowadays some banks do offer 0% for 1st yr or ) payment until completion, u hav to check with the panel banks.

ur car loan ? any?

yeah,i think so too, however the bank officer at maybank seems to think otherwise. He said without any confirmation letter it will be hard for me secure full amount of the loan applied. Nope, no car loan to service as i 'inherited' my mum kancil.

Any loan officer here care to give me any quotation?

saujana utama only got maybank as panel? perhaps u wanto try UOB /Public /OCBC



This post has been edited by yewkhuay: May 18 2008, 10:34 PM

as a rule of thumb for loan application:

if you loan 90%, your salary ratio your debt is 30%. so that means adding up all your monthly commitment (loan), it should not exceed 30% of your salary. in your case, lets just say its 7k (both), your loan repayment cannot exceed rm2100/mo, which i think you are paying at about RM1.4-1.5k/mo for your property max. so you should be all good.

80% loan then is 40% ratio and if you are seeking for 60% loan, you are approved without any justification required.

and that's HSBC policy, not sure if it is the same for other banks but should be pretty same...

Nah, i just made a quick stop at maybank booth today. I'll enquire more info from glomac sales staff on the list of panel bank's tommorow.

yeah, i avoid maybank like plague

UOB and PBB are pretty good in home loan, i've got mine for BLR - 2%...

mark0411,

1) If you are 26 years OLD, how can you get a 35 years loan?? I thought loan can only goes up to 55 years old aka retirement age. So, maybe a 29 years or 30 years loan.

2) Let say it is a 30 years loan, so monthly payment is $1,700. Current loan (200+150+ 150+ 190) = $690. So, total loan payment = $690+ $1700 = $2690 ~ $2700

3) 33% rule = Monthly income need to be $2700 X 3 = $8,100

The bank may be able to give you a loan. But, you better ask yourself a simple question, can you AFFORD the house?? Your financial situation is VERY TIGHT. If we hit recession or you lose your income for a few months up to a year, you may lose the house.

Dreamer

This post has been edited by dreamer101: May 18 2008, 11:47 PM

loan is upto age 70yrs old now.

1) Correct me if i'm wrong, there are several banks that offer loan tenure up to 40 years. The retirement age for this case would be 65-70.


2) If i'm loan from UOB, the monthly installment would be roughly around 1536 for 30 years tenure. If 40 years tenure is indeed possible the monthly installment will be 1386.

3) Based on your logic, i may not be able to afford any house at all. If i were to factor in the risk of recession or getting my employment terminated, than no house is affordable enough if i dont have any money to pay...even though i purchased cheaper house.

Anyone from UOB here?

You should not have a problem to get the loan. Your combined salary with fiancee is enough to get a home loan.

As long as you get employment offer letter from your company, it should be fine. 3months Payslip and bank statement must be tally.

Congrats

Getting a loan at 90% should not be a problem . Maybank has always been a bit rigid so check with CIMB and PBB, as I chat with them recently and they say they got no issues with changing employments.

I strongly recommend that you dont take loans that is longer than 30 years as the interest oayout would be substancial and I guarantee u'll regret this 2-3 yeasr down the road. Try performing an analysis of a 30 & 35 year loan respectively and u'll see what I meant.

Put your GF as the main borrower, and you as the secondary borrower/guarantor. That should solve it.

GO for first year 0% loans, and think UOB and stanchart has that package.

Btw, as a reminder, try to purchase the property alone since you could afford it. She's not your wife yet, so things can be very complicated if it didnt work out between the 2 of you. I've seen many cases b4, so Im telling u this as a pre-caution.

public bank has offered 0% 1st yr, TA BLR-1.6%. , non-zero.

If i were to take a loan for 35 years just to get lower monthly installments and later refinance it to reduce the tenure and principal, will that be a good idea?

I'm not comfortable with the idea of paying 1500-1600 per month, i would rather pay between 1200-1300 instead until i could manage to get higher salary etc.

there are banks that do step up loan repayment scheme that allow you to repay at lower for the start and gradual increment as to expect your salary to increase too.

mark0411,

3) That is why you make sure that you have EMERGENCY FUND / Savings to cover 3 to 6 months worth of expenses before you make a major commitment like buying a house. This is the problem with MOST PEOPLE when they calculate whether they can afford certain house. They used up ALL their savings for down payment and they have NO EMERGENCY FUND. Then, we hit a recession and they lost their house.

mark0411,

Take a longer tenure loan to give yourself some breathing room in monthly payment. You DO NOT have to refinance to pay off the loan earlier. Get a flexible loan that allow you to pay down the principal if you want to. You can pay off 35 years loan in 10 to 15 years if the loan term and condition allows.

Refinancing cost $$$. Get the RIGHT loan and save yourself a lot of trouble and $$$.

Dreamer

Unless you plan to get 50 years financing, your monthly repayment will not be anything less than 1.3k p/m. Its a not woth going for more than 30 years financing.

your combined income is more than 8k, but not comfortable to take up a 1.5k commitment. Can tell us why coz it seems quite odd.

@Pai,
Perhaps TS has other financial commitments he didn't elaborate to us about. He would be in the best position to evaluate his own cash flow, right?

Mark,

Ur 26 years old with a salary touching RM5k. And a GF/fiance with a salary touching RM3k. U can definitely afford a RM313k home with a very safe margin to live. In fact, If I were you, I'd be looking a something more high end if you're an investor. Else, If you're gonna get married and have kids soon, just stop after this house purchase. Just look for the bank giving you the best interest. Interest rates have never been this good....not even when BLR was 6%. Can you imagine banks competing to offer loans up to 30 years at BLR-2%???


Good luck,
minolta

In addition to what Minolta said, someone mentioned being offered BLR-2.2% by Allianz Bank on some other thread [unable to go search through the forums at this point but will do that when I'm available in a day or two]

Dreamer,

3) We do have emergency fund that can lasts us for about 7-8 month minimum. I do think about the risk of recession often, that is why i dont purchase higher end property.

That's the reason i want to take longer loan tenure, so that i have some breathing space especially during the 1-2nd year of our marriage. Thank you for the tips about refinancing.I will bear that in mind.


Pai,

Yes, our combined income are more than 8k excluding bonuses. I just need the extra money for the wedding ceremony proposed to be held end of next year and some of the extra money saved will be channeled towards investing.



My plan is to get a loan that will allow me to pay the absolute minimum (no payment at all would be better) for the first year of the loan period and save the money for the ceremony. After that even with 1.5 commitment monthly, i think we can survive as we are saving around 3.5k monthly combined.

Regards

an easier solution is to get a cheaper house, say a condo or apartment. Makes a lot of sense considering u r a young couple, does not require that much space, and ultimately u can rent it out for monthly cashflow if u decided to upgrade.

exactly. my plan is to buy a 2nd hand condo tht i can take my own sweet time (1yr) to reno n deco then move in. at the same time scouting for new project tht will be delivered in 2-3yrs time , a landed for bigger family in 4-5yrs time. when i move, i can still rent or sell off the condo/aptment.

---

Added on May 19, 2008, 11:17 pmbtw, marriage doesn't mean need big house, buying a smaller house means u can be sole loan applicant yet put ur gf name under the property.

This post has been edited by yewkhuay: May 19 2008, 11:17 PM

mark0411,

1) Your 7 to 8 months emergency fund include or exclude the house payment.

<<After that even with 1.5 commitment monthly, i think we can survive as we are saving around 3.5k monthly combined.>>

2) Is that 3.5K before or after house payment??

To survive financially, you need to save 10% to 15% of your gross income. In your case with combined income of 8K, that means RM800 to RM1,200 per month.

Dreamer

My Challenge to you is to survive on 1 pay cheque, either yours or yourwife's.
Then you will be on very good grounds

Hi Alliance Bank's Staff here....

Your salary + your fiances's salary (combine salary) for RM 313k loan is more than enuff...

Alliance Bank now is offering 1st and 2nd year lower fixed rates :-

1st-2nd year : 3.75% fixed
3rd-5th year : BLR-1.50%
Thereafter : BLR-1.80%

another options:-

Whole Tenure : BLR-2.05%

*The above rates still negotiatable , can fight for better rates base on customer particular.....

Whole Tenure : BLR-2.05%.... Zero Moving Cost? ^^

it's Non Zero Cost

rates still can negotiate =)

wow this is a damn killer rate!

many banks offer up to BLR-2.00 for 1-3 years only...now this is whole tenure....

I've decided not take up the house or loan after all. I think i'll just wait and see on what's going to develop over the next 12 months before deciding whether to buy 300k house or cheaper and smaller house.

So guys, what do you think will develop over the next say 12-18 months? Do see the house price increasing or decreasing?Do you think its a good idea to be put off the plan to buy a house for now?

The house price will increase drastically. If you're planning to buy a house, better do so now. I've been serving developers as a banker so I know their increment. Those developers that normally increase only 5k to 10k each phase for house around 300k (same house design and built up) will now increase 30k to 40k coming phase.

As for the bank rates, they're forever competing like mad so the rates are forever changing.

That's ridiculous. Are you saying that people who make less money need less money to live ? if I make say 2000, I will need 200-300 to survive. But if I get a new job that pays say 5000, suddenly I will need more to survive even though my expenses haven't changed ?

---

Added on June 10, 2008, 10:46 pmAgreed. House prices always go up in the long term. The simple reason is that land is limited, and more houses are being built.


This post has been edited by wodenus: Jun 10 2008, 10:46 PM

don't buy any new projects now ... go for second hand .. 200k plus subsale condos near public transport like lrt. new projects now are expensive because of raw material prices so they are not worth it to buy. alot of developers are saving on material now so don't buy developer units now. or at least wait till end of the year. everyone is scared that china will start dumping all their raw resources after the olympics. wait til after june next year for a lot of other reasons. but for now look for subsale units and buy one next to public transpoirt like lrt so that next time when u move into another unit u will be able to rent it out easily. so what exactly are u looking for? have you thought about the areas u want to live in? where ur life is and where you work or where you think u like? by the way i'm an agent just sharing my thoughts and views with you.

I'm not talking about 5-10 years or even longer, i'm talking about the next 24 months


I'm looking for landed unit, the price range around 250k-330k, terrace 2 story. Area around sunway kayangan,alam suria,alam budiman, nusa rhu,bukit subang or putra heights.

313k loan with 4k salary, any bank should be able to give you that loan...bank now can give liability percentage of up to 70%, provided thats your only commitment. But ask yourself, can you afford that monthly payment with our current inflation + service charge + utilities bill.

wodenus,

Let me repeat ONE MORE TIME. To survive financially, a person need to SAVE 10% to 15% of their GROSS INCOME.

I am talking about HOW MUCH TO SAVE. I am NOT TALKING about how much you need to survive.

<<if I make say 2000, I will need 200-300 to survive. But if I get a new job that pays say 5000, suddenly I will need more to survive even though my expenses haven't changed ? >>

Let's take your example.

A) If you make 2000 per month, you need to SAVE at least $200 to $300 per month.

B) If you make 5000 per month, you need to SAVE at least $500 to $750 per month. If you do not CHANGE your life style, you will SAVE a lot more than 10% to 15% of your gross income.

Dreamer

there are alot of subsale terrace houses selling at between +5 to +20 percent of orignal pruchase price

and by the way just let u guys know.... it doesn't matter how much the developer raises the price for a project, at the end of the day it is the demand that defines market value. Right now demand is on a decline due to oversupply also middle income families are overly geared and plus the rise in cost of living, things look bleak for the property market.

dude just remember it is now a buyers market. You as the buyer is king. anyway go have a look around at the subsale market. Especially in putra heights alot of buyers are dumping property there. Fully renod link houses selling for +15% of their original purchase price. New suburbs aren't doing fantastically well. Since your buying to stay, stay within extablished areas and you will be fine. Unless your speculating, go for new high growth areas. just remeber the thumb rule of investment, higher risk higher return.

By the way right now is not the time to become commited. Again recession is already here right now it is a property market especially around the expensive areas. Not enough tenants, rental prices not enough to cover loans, buyers are not buying. New high-end properties especially in the klcc and mont kiara area is 80% investment purposed.

By the way from the choice of your areas are u malay? have u searched i property?

So when you say "to survive financially" you're not talking about how much you need to survive financially ? what other meaning of "survive" is there ? unless of course you're saying if people don't save that much they will drop dead

This post has been edited by wodenus: Jun 11 2008, 11:12 AM

My loan package:

1st year - 2.88 fixed
2nd year till 30th year - BLR - 2.00

Although I think now this is quite normal d. Some forum posters actually mentioned EON Bank with BLR - 2.2

Hi guys,

Talking bout alliance bank rates?
Im a mortgage sales executive from alliance bank.You guys heard it rite,alliance offering as low as BLR-2.40%.
For 300k and about the rates are as such 1-2years BLR-2.30%, 3-5 years BLR-2.05% and thereafter BLR-2.05%.
Interested and any further clarification please drop me your contact num or questions at veen_0809@yahoo.com.have a great day ahead.

parven
mortgage sales executive

here what al-rajhi bank offer..

whole tenure: BFR -1.70% (without free moving cost)
repayment period: up to 35years or age 65

[quote=dreamer101,May 18 2008, 11:46 PM]
mark0411,

1) If you are 26 years OLD, how can you get a 35 years loan?? I thought loan can only goes up to 55 years old aka retirement age. So, maybe a 29 years or 30 years loan.


The bank may be able to give you a loan. But, you better ask yourself a simple question, can you AFFORD the house?? Your financial situation is VERY TIGHT. If we hit recession or you lose your income for a few months up to a year, you may lose the house.

Dreamer

[/quote]
they have until 70 or 65 years old. This is what mortgages do...they choke you especially after retirement. But many fail to see that. I still see a 55 year old guy STRUGGLING to pay off his mortgages now with no steady job in hand.

[quote=mark0411,May 19 2008, 08:00 PM]
If i were to take a loan for 35 years just to get lower monthly installments and later refinance it to reduce the tenure and principal, will that be a good idea?

I'm not comfortable with the idea of paying 1500-1600 per month, i would rather pay between 1200-1300 instead until i could manage to get higher salary etc.

[/quote]

that is IF your salary raise. Think again what if BLR rise? Your monthly repayment increases. Can u take the extra monthly repayment?

Furthermore, I suspect this is a under construction package right? Money is released to the developer in a small amount which makes no significance if your interest is low.

Take example...
1st Quarter : developer issue letter to bank, indicating have completed 20% probably RM62000

your interest : 3% (example) so you are only paying RM62000 X 3% of it... and not RM310K X 3%.

By the time of completion, probably in a year or two... BLR could have raised... here's a history on how BLR have increased in 5 years time (click on spoiler)

http://forum.lowyat.net/index.php?showtopi...post&p=17816685


[quote=yewkhuay,May 19 2008, 11:15 PM]
exactly. my plan is to buy a 2nd hand condo tht i can take my own sweet time (1yr) to reno n deco then move in. at the same time scouting for new project tht will be delivered in 2-3yrs time , a landed for bigger family in 4-5yrs time. when i move, i can still rent or sell off the condo/aptment.

---

Added on May 19, 2008, 11:17 pmbtw, marriage doesn't mean need big house, buying a smaller house means u can be sole loan applicant yet put ur gf name under the property.

[/quote]

buying condo has a very limited terms when it comes to renovation. Meaning to say, nothing major can be done. Plus have to pay maintenance and in case some lousy developer hire some lousy maintenance agency...

note that maintenance fee can be increased in the discretion of the developer

[quote=soitsuagain,May 22 2008, 10:44 PM]
wow this is a damn killer rate!

many banks offer up to BLR-2.00 for 1-3 years only...now this is whole tenure....

[/quote]
Of course is killer rate... coz they know BLR is increasing.

If BLR increases somewhere on August this year... probably to 7% and in future of 3 years ahead, it reached to 8%

BLR-2% = 6% back to square one

[quote=wodenus,Jun 10 2008, 10:44 PM]


[quote=dreamer101,Jun 11 2008, 04:35 AM]
wodenus,

Let me repeat ONE MORE TIME. To survive financially, a person need to SAVE 10% to 15% of their GROSS INCOME.

I am talking about HOW MUCH TO SAVE. I am NOT TALKING about how much you need to survive.

<<if I make say 2000, I will need 200-300 to survive. But if I get a new job that pays say 5000, suddenly I will need more to survive even though my expenses haven't changed ? >>

Let's take your example.

A) If you make 2000 per month, you NEED to SAVE at least $200 to $300 per month.

B) If you make 5000 per month, you NEED to SAVE at least $500 to $750 per month. If you do not CHANGE your life style, you will SAVE a lot more than 10% to 15% of your gross income.

Dreamer

[/quote]
bolded for better meaning

[quote=wodenus,Jun 11 2008, 11:11 AM]
So when you say "to survive financially" you're not talking about how much you need to survive financially ? what other meaning of "survive" is there ? unless of course you're saying if people don't save that much they will drop dead

[/quote]

yes, people who don't save much can drop dead especially when you are IN NEED of money and when you cannot work anymore (probably of old age or disabled) and by then you would regret why didn't you save earlier. There are a number of people falls into this category. Thus while you are able, save and spend wisely. Probably you may think enjoy myself first coz this is what i deserve... but think wisely on the future and also what risk do you have and what is the upcoming risk? unemployment? accident?

wodenus,

A) How likely for you to NEVER get sick or have ANY KIND of financial emergency for your WHOLE LIFE?? For example, you are FULLY EMPLOYED for your WHOLE LIFE and you NEVER out of job for any amount of time??

B) Do you mean that you will work until you die aka never retire?

10% to 15% is the MINIMAL buffer required for a person to survive those COMMON but uncontrollable FINANCIAL emergency.

That is the meaning of FINANCIAL SURVIVAL. Having enough to live and continue to live in spite of some FINANCIAL emergencies.

Just a simple example, if you spend ALL your money every month, what are you going to do when

A) Your car broke down and need a major repair.

B) Your washer or air-con died and you need a new one

Your regular 10% to 15% is needed to handle those COMMON Regular financial emergency without going into serious debt problem.

Dreamer

This post has been edited by dreamer101: Jun 18 2008, 11:28 AM