Hi,
Just a questions, for people buying houses for home stay, why most dont want to go with fixed rate loan?

From ING i got quote fixed at 4.85%. I know its way higher now, but what if in 5years the BLR goes to 7%?

Can someone please explain to me.
Thanks

Hmm..i did consider ING as well..but paying 4.85% now seems much higher.
I read somewhere that first 3 years, most of our installment goes into interest payment and only a small portion on principal..

So, I took those normal BLR-2.3%.
I think there is pro and cons for both package.
Just that I dont want higher commitment now. So, I take the bLR-2.3% plan and will try to repay more each month. By doing this, at least my principal can be reduce a bit more.

Please correct me if my understanding is wrong..

I heard (somewhat credible sos) ING's terms are strict and the loan is difficult to obtain, hence didn't even bother about ING in the first place.

Anyway, by than, I would have contemplated about re-financing my house.

The same argument also applies, what if the interest rate falls?

Fix rates is only beneficial one way, that is if interest rates is trending upwards.

Floating rates i.e. BLR - X% offers flexibility but not necessarily cheaper.

Than the final consideration would be:

1. the Lock in Period (3 -5 years?)

2. with or without MRTA. (with MRTA technically if you wanna refinance, you most likely get burnt, hence we took life insurance instead)

Am looking for Hse Loan.

Applied @ Alliance ......dragged for 2 weeks by officer and was only offered at 70% margin of finance @ 25 yrs!
(was only informed today!)

Am looking for good package. Preferablebly conventional housing loan, allow prepayment, no other costs ie maintenance/precessing fees/Lock in years ok...

Please PM me. Tx!

Looking for home loan. Kindly PM me your offer.

Loan Amount 280k
Tenure: 30y
Lock in Period?
With or Without MRTA?
Rate?

Dear forumers,

It is advisable to provide adequate details within the posts, so that bankers/brokers/consultants are able to have some fundamental understanding of your requirement and try to work out the best for you all. Concerning the confidentiality of your personal information, FORUMERS ARE HIGHLY ADVISED TO PROVIDE THE INFORMATION AS BELOW TO THE PERSONNEL VIA PM if you are not intend to post it publicly.

Based on rule of thumb, the essential information is as listed below:

1. Financing asset: Under-con Property (direct purchase from developer), Sub-sales (existing property), refinancing, or vacant land
2. Sales price
3. Age: determine the max tenure which applicable to you

4.1 For Sub-sales:

a.Full address: Specifically for sub-sales, as the address will be provided to property valuer for value estimation. The estimated value of the property will determine the maximum loan amount which will be granted to applicant

b.Property detail: B'glow/Terrance/Semi-d... + Sty + Intermediate/Corner/End-lot + Land area

4.2 For under-con case:

a.Developer Name

b.Project Name (If you are uncertain, kindly provide a developer contact for us and we will find out for you)

5. Expected Margin of financing

6. Gross Salary: If it is a joint application, kindly provide separated gross salary for all applicants

We know that going from 1 bank to 1 bank to apply for loan is extremely exhausting. Our company provides a 1-stop service for our customers by helping them to apply multiple banks' financing. If you do interested in getting our services, kindly provide a scan of documents as below to us via mail, home_save@live.com or via fax, absolutely, FREE OF CHARGE. Kindly provide your contact number to us, our consultants will approach you right after the documents had been review. Appointment can be made for face-to-face consultation. We strongly advise our customers to provide complete set of documents, so that we can work out the best within 24 hours.

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Added on October 4, 2010, 11:08 pmHello DE.si.MON,

For your loan size, it is expected to be BLR -2.1 ~ BLR -2.2% optimistically, tenure 30 yrs can be extended to max 40 yrs (depending on current age and educational level), lock in period mostly to be 3~5 yrs (better rate, longer lock in period), MRTA can be waived subjected to banks' discretion. We can match your profile and find the right banks' package for you. As there is limited information provided by you, these are the information that I can share with you.

Give me a call and we can discuss about it.

Have a nice day.

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Added on October 4, 2010, 11:13 pmHi teaspoon,

You can look for the best package and the best rate in the town, but pls keep in mind, you might not be eligible for it due to some requirements to be met in term of your property or your profile. It is just unwise to ask for the best without providing any necessary detail to any bankers or brokers who can help you on this. Kindly provide the details to us, so that we can try to work out something for you. Fyi, monthly maintenance cost is applicable to all full flexi loan, processing fees mostly will be waived, cost of withdrawing previous prepayment will incurred and the amount is varies across bank, lock in period will be 3~5 yrs for a better rate, no-lock in will only available with higher rate.

Pls let us know how we can help you.

Enjoy your time.

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Added on October 4, 2010, 11:29 pmHi aurora,

To be frank, getting a home loan, technically, you are trying to get the package that best fit your NEED and your EXPECTATION rather than the actual implication & cost of the package. This is especially true when you come to floating rate package. Fixed rate is not necessary a hedge against inflation or rising interest rate, but in fact it is more prone to provide a financial certainty to facility users (while floating rate package won't insure against this). Due to the fact that fixed rate provide financial certainty, the trade-off will eventually become a higher rate to compensate the institution in the event of the rate going over the pre-specified rate (or dropping drastically). There is never a best package in the town as there will only be the right package for the right person. When you consider the historical peak of BLR at 12%+ for the past 20 yrs, 4%+ fixed rate is just a heaven. (well, just like you say, not necessarily cheaper)

For the lock-in period, it will be a concern when it comes to your motive of financing a property. If you intend to sell the property after 3 yrs or less than 3 yrs, you might need to sacrifice a good rate for an exchange of no lock in or even shorter lock in. There is no such thing of best rate+no lock in (as per today). It is just a matter of how to take the things and make it work. Sometimes, you buy a under-con property which takes 3 yrs to complete and you plan to sell it right after completion, a 3 yrs lock-in package might work for you (provided it is 1st drawdown)

As per MRTA/ MLTA, indeed, if you plan to refinance or sell it off later, MLTA might be a better option due to its superior features against MRTA (definitely, with higher cost) A well structured MLTA can be used to pay off your loan and shorter your tenure effectively and provide fine coverage for your family (if the financial architect is able to do it correctly for you). Normally, we will advice our clients to go for MLTA if they can afford it.

Just my 2 cents.

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Added on October 4, 2010, 11:41 pmHi trival,

For mortgage loan which offered by insurance institutions, their requirements are normally stricter than ordinary financial institutions as you are not going to have any assets (FD, savings account) to be pledge against the mortgage. If 1 day you run away, the insurance company will have a hard time to re-sell your property or freeze your asset to cover your outstanding (do you frequently see an insurance company organize a public property auction? That's the point.) Their mortgages function in an inverse way as compare to banks, they prefer a smaller loan than a larger loan. You can look through our previous discussion about this topic and let me know what you need. For the discussion of "what if BLR goes to...", well, this is your expectation.

Previous discussion of insurance companies' mortgage: http://forum.lowyat.net/topic/701749/+2340

For discussion of BLR movement: http://forum.lowyat.net/topic/701749/+2360

Hope it helps. Better if I post the link rather than repeat the whole things again. Moderator is going to kill me if I do this.

This post has been edited by home_save: Oct 5 2010, 01:38 AM

normally how long do it takes the bank to approve the loan?

Hi LY88,

Upone submission of full documents, it might takes 4~10 working days to approve the loan. Varies across bank and dependent on customers' documentation, normally, self-employed will take a longer time than employed, civil servants take shorter time than others, full documentation takes shorter time, income declared "nicely" and tax paid accordingly will put you in advantage. Historically, we had experienced 1 day approval (but, it just happens for once in a blue moon).

Hope it helps.

This post has been edited by home_save: Nov 29 2010, 03:46 PM

Hi Home_save,

Need advice here.


1. bought an apartment in 2007, at bukit jalil nearby, direct from developer. want to refinance it for some cash to consolidate other debts (car, cc, edu loan). current loan is cimb conventional at 6.4% (125k++ more in debt ). I want to refi my current loan to an islamic home loan .

2. current Sales price is 180k++ (i think).

3. Age : 30. want to get the longest tenure

4. future plan is for own stay or rent it .


My needs is I want some cashflow, and to consolidate my other small debts. So I can only focus on one piece of loan.


Already contact hsbc, cimb, but there are too slow to respond..



Thanks

This post has been edited by cyberGEEK: Oct 5 2010, 02:41 PM

thank you for your feedback, obviously no one shirt (or hat) fits everyone, there is a need to weigh the pros and cons rather than taking an advice directly from a stranger. The way you have put to me may require myself to further elaborate my position to you and also to help other forumers to understand what am I trying to point out.

that said, i am merely weighing some of the pros and cons between fix and floating rate but neither am i preaching that either is better against the other. Only through the passage of time say perhaps 30-40 years down the road, we will reliaze the impact of what we had signed up for.

Furthermore, the current financial situation unlike pre-1997 crash, whereby interest rate was up the roof, we are current facing a total different ball game all together. Gold price are at all time high, the echoes of recession through out the globe is still active, people are still losing jobs and homes, there is simply no certainty for anything we do. Back than economy was doing great and Malaysia had tonnes of mega project and oil to splurge, look at us today, the government is scrambling for money from GST, increasing taxes and so forth, dwindling oil reserves, whilst the standard of living throughout Malaysia maintains as it is. Obviously this are not encouraging signs.

With depending on financial standing/circumstances of each individual taken into perspective:

I believe most home buyers (borrowers) aim to achieve a balance between the numerous risk that they encounter be it interest rate, inflation, legal, financial, default and/ or hedging for that matter.

Hence, I dare not say whether floating or fixed rate is a better option, paying higher interest on loan may reduce disposal income but not necessarily a death sentence, if combine correctly with the right mix of lock-ins, MRTA/MLTA and refinancing.

maybe only take one day to approve my loan...
but other banks...
so far have two offer:
Tiger: fix 1- 3 yrs, 4.5%, then BLR - 1.9%.
PB: BLR- 2.3...

PB can gv BLR -2.3, what's ur loan amount

BLR -2.3 is really good nowadays
yeah i also wanna know ur loan amount

Hi cyberGEEK,

CIMB might be slow-responding but HSBC should be efficient enough. Just my guess, I think your case is having commitment problem. I assume that since you are looking forward to cash out from mortgage and settle other debts, the commitment that you are having now should be significantly high and that's why the banks are slow responding to you as they are still checking on your profile and having concern over your high commitment.

I would suggest you to go to CIMB bank (your own branch) and ask for rate restructure (refinance with CIMB, your loan is with CIMB right?). They should be able to get you a good rate and have easier approval procedure. In this case, you will save up the legal fee and avoid any penalty cost. Most importantly, you will have a better chance to refinance your house as your commitment should be very high now and it will put you in disadvantage if you go to the other banks.

If the CIMB banker don't wan to entertain you, just find the others who are willing to help. I think there shouldn't be only 1 banker station in the branch right?

Hope it helps.

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Added on October 5, 2010, 8:49 pm

Well, it seemed like we are having some points that make us see eye to eye. Everything in Malaysia is looking good and steady but the fundamentals have changed. It is not as optimistic as we think or imagine. Risk is just everywhere and thereby, implies opportunity for everyone. It is just a matter of how we take it and how we make use of it. Just pray for the best for M'sia and let's us be wise when we do everything, for the sake of our future and our nation.

Cheers.

Regards,
Chris Looi


This post has been edited by home_save: Oct 5 2010, 08:49 PM

do pm me for mortgage info

hi home save


no idea why the facebook is not working

hii, i'm looking for a housing loan
details are as below:
1. Sub-sales
2. around RM 120K-130K
3. Age: 26
4. address: pandan perdana (near the pandan lake area), cheras
5. Property detail: condominium
6. MOF: <90%
7. looking for BLR - 2.0+ range

appreciate if anyone can advise/suggest what is current best offer out there.

thanks.

Hi Bryon,

Thanks for notifying us on this. Our IT team has try to fix it. Hope it works now. Thanks.

Hi al,

Need sifu's advice on the following. Im trying to help my client on their finances, but im still not 100% sure of the calculations. Can sifu's advice and check if the following is correct?

Deposit and fees requirement
Fees are cal based on selling price unless specified

Payable - Buyer
1) 3% +/- Earnest Deposit/ Booking fees:
2) 7%+/- Deposit:
3) Transactional Fees:
a) Stamp Duty: <100K= 1% , > 400K= 2%
>500K=3%
b)Legal Fee/Lawyer :
First 150,000 1%
Next 850,000 0.7%
Next 2,000,000 0.6%
Next 2,000,000 0.5%
Next 2,000,000 0.4%
c) Other FEES
Stamping fee (per document) 10*4
Adjudication fee 10
Search fee 60
Registration fee 100"

Calculation of Due's:
Selling price of house 122,000.00
Deposit Payable 10% 12,200.00
1) Earnest Deposit 3% 3,000.00
2) Balance of deposit 7% 9,200.00
Note: Balance of 7% can use EPF to pay


Transactional Fees: est 2,950.00
1) Stamp duty: 1% of Selling Price 1,220.00
2) Legal Fees: 1% of Selling Price 1,220.00
3) Stamping Fee's (4 sets) Seller,Buyer,Bank,Gov) 40.00
4) Adjudication Fee/caveat check on prop 10.00
5) Search Fee/bankrupcy/court case on seller 60.00
6) Registration gov. 100.00
7) CKHT 1A per Vendor - RM 300 est 300.00
Total 2,950.00
Note: Transactional fees can be added on loan

Sum of purchase excluding interest on loan: 124,950.00
Loan = 90% on 30 years (BLR -1.8% on 6.3 BLR= 4.5%) est 123,000.00
Est repayment monthly: 650.00

Fees,Taxes Payable by Seller
Fees are cal based on selling price unless specified

1) Agent Fees= 3% or 2%
2) 5% Service Tax on 3% of agent fee
3) Property Sale & Purchase Legal fees:
"1% on the first RM100,0000 of the property's selling price
0.5% on the next RM4,800,000
0.25% on any amount over RMRM4,900,000 "
Note: Some sellers do not instruct a lawyer and therefore save on the legal fees. This is possible because the buyer’s lawyer will draft the Sale and Purchase Agreement. However, not using a lawyer is not recommended unless you really know what you are doing. The Sale & Purchase agreement may seem simple enough to read but you will be surprised how often your lawyer will point out something that you would not have noticed that could have a material impact

4) Early redemption penalty: if applicable
a) Est penalty = 3% on loan amount
Note: Before selling, check your mortgage policy to determine whether any penalty for early redemption may be applicable.
5) Deed of Receipt and Reassignment - RM 400 est
6) CKHT 1A per Vendor - RM 300 est
7) Stamping of Receipt and Reassignment: RM 10 percopy
4 sets required (RM10x4)
8) Purchase of Deed of Receipt & Reassignment = est RM200
9) Registration of Receipt and Reassignment at the High Court =est RM80
10) Disbursement= traveling,stationary and telephony =est RM200
11) RPGT: Real Property Gain Tax
a) 30% on profit made for sale within 2 years of purchase
b) 20% on profit made for sale in 3 years of purchase
c) 10% on profit made for sale in 4 years of purchase
d) 5% on profit made for sale in 5 years of purchase
e) 0% on profit made for sale after 6> years of purchase
Companies would be charged 5% on profit made for 6 yrs>
Note: Payment of real property gains tax is also normally incorporated in the sale and purchase agreement. Usually the solicitors acting for the seller will act as stakeholders retaining 5% of the purchase price unit payment of the same.

Calculation of Seller Due's:
Selling price: 122,000.00
1) Agent Fees= 3% or 2% 3,660.00
2) 5% Service Tax on 3% of agent fee 183.00
Total 3,843.00

Transactional Fee est:
1) Property Sale & Purchase Legal fees: 1,220.00
1% on the first RM100,0000 of the property's selling price
0.5% on the next RM4,800,000
0.25% on any amount over RMRM4,900,000 "
2) Early redemption penalty: if applicable
a) Est penalty = 3% on loan amount early redemption penalty -
3) Deed of Receipt and Reassignment - RM 400 est 400.00
4) CKHT 1A per Vendor - RM 300 est 300.00
5) Stamping of Receipt and Reassignment: RM 10 percopy
4 sets required (RM10x4) 40.00
6) Purchase of Deed of Receipt & Reassignment = est RM200 200.00
7) Registration of Receipt and Reassignment at the High Court =est RM80 80.00
8) Disbursement= traveling,stationary and telephony =est RM200 200.00
9) RPGT: Real Property Gain Tax (Taxable income)
a) 30% on profit made for sale within 2 years of purchase
b) 20% on profit made for sale in 3 years of purchase
c) 10% on profit made for sale in 4 years of purchase
d) 5% on profit made for sale in 5 years of purchase
e) 0% on profit made for sale after 6> years of purchase -
Total 2,440.00

Total Liability to seller est( Agent Fee + Trans Fee) 6,283.00

Net Gain Calculation
1) Value of house purchased inclusive of deposit X
a) Loan amount X
b) Loan amount + interest X
2) Total Loan paid X
3) Full redemption value (Not balance as balance & redemption value is diff) X
4) Transactional & agent fee's X
5) Selling price X
6) Selling price - redemption value - transactional & agent fee X
7) Net Gain after deductions Total X

any good mortgage package to offer me?
1. Sub-sales
2. around RM 250-280k
3. Age: 25
4. bandar baru bangi area
5. Property detail: 2 storey terrace
6. MOF: <90%
7. looking for BLR - 2.0 (fixed or islamic)
8. can get flexi?
thanks