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

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?

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.

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

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 ?

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Added on June 10, 2008, 10:46 pm

Agreed. House prices always go up in the long term. The simple reason is that land is limited, and more houses are being built.

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