I've been quoted 8.4k for all fees to acquire the 210k property. faint...
Anyway, is there MOT charge payable upon approving the loan? I thought MOT is issued only after we fully paid the loan amount. Or did the lawyer charged MOT fee due to it's a 3rd hand property?

thanks for all input.

This post has been edited by animegod: Oct 13 2010, 10:46 PM

Post moved

This post has been edited by home_save: Dec 20 2010, 12:42 AM

Hai guys, I jus need your help. I jus purchased a new apartment (140K) n my loan can only go until 70% (cos of other commitment)

I have paid de 10% upon signing de s&p. My question is when do I have to pay de remaining 20% to de developer, isit before bank make their first release to de developer or after they have released all de money then i pay de 20%.

10Q a lot for ur helps.

Normally, bank will on disburse loan when developer send in billing with your clearance letter. Which mean you need to settle the 30% before bank disburse. Never heard of bank disbursing before you finish paying the downpayment.

The bank will disburse the loan based on the progress claim from developer for new property. Prior to that, you need to settle the 30% down payment to developer after signed the SPA,

Have you signed the loan agreement? If not, do you have any supplement income like part-time income? You can appeal to the bank to increase your financing margin with supplement income.

Meanwhile, my banker can offer BLR -2.0% without MRTA based on client's profile. With MRTA/MLTA, you can get BLR -2.1% to -2.2%.

Btw, I'm a mortgage broker with various banks as panel. Pls email me at khhong88@gmail.com if you have any query.

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Added on October 14, 2010, 7:01 amThe fee is on SPA or loan agreement? Think MOT is charged when your property's strata title is not issued. Which bank you took the loan & what's the rate they offer you? Need to reconfirm with the lawyer on MOT.

Btw, I'm a mortgage broker with various banks as panel that provide free advice to our clients. Pls email me your contact no. at khhong88@gmail.com for more effective communication. Thanks.

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Added on October 14, 2010, 7:04 amHi, i can help you on the loan. I'm a mortgage broker with various banks as panel. We offer free advice to our clients.

Pls email me your contact no. & property details at khhong88@gmail.com so that i can help you. Thanks.

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Added on October 14, 2010, 7:23 amHi, i can help you on the loan. I'm a mortgage broker with various banks as panel. We offer free advice to our clients.

Are you first time house buyer? If yes, property below 250K can appeal for 50% rebate on stamp duty. RM5k is more than enough for loan agreement. Does your bank charge valuation fee? Which bank you apply the loan?

Pls email me your contact no. & property details at khhong88@gmail.com. Thanks.

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Added on October 14, 2010, 7:37 amFirst thing, if you plan to buy a property, pls find out whether your income capability is enough to get a loan (eg: monthly salary + side income)? What's your commitment level (eg: car loan, personal loan...etc)? Most of the bank can allow to 50% commitment. From there, you set your budget. When you have confidence with the loan, you can pay the deposit 2-3%.

On ther other hand, you can indicate in the booking form the transaction will be cancelled & the deposit is fully refunded if you can't secure the loan. This you protect your earnest deposit from for-feited.

Btw, I'm a mortgage broker with vaious banks as panel. We offer free advice to our client. Pls email me your contact no. & email address at khhong88@gmail.com so that I can help you further. Thanks.

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Added on October 14, 2010, 7:48 amHi, I'm a mortgage broker with various banks as our panel. We offer free advice to our client.

We offer fixed rate loan & flexi loan as well. Our panel bank can offer higher than BLR -2.0.

Pls email me your contact no. & property details at khhong88@gmail.com. Thanks.

This post has been edited by khhong88: Oct 14 2010, 07:48 AM

Yeah, i also heard from my client some banks actually now offering zero lock in period. Thats great but can show me offer letter? opps, only verbally promise. ??? Maybe some banks will offer zero lock in period but then there are T&C applicable.

You see, client don't want to have lock in period cause most of them are investors and they want to settle off the loan once price is good and potential buyer. Banks usually want to earn few front years of the loan, ex. 3 or 5 years lock in @ 3% of loan amoint. We pay interest more at the first few years, less on principal amount. So bank surely want to tie you up for few years before you decide to move to other banks.

If the property is for own occupied, the lock in period shouldn't be a hassle to you as you can always choose to refinance with the same bank when the rates are cheaper. Same situation, you move to other bank or refinance, you still need to pay legal and valuation fee. Benefit only, refinance you can get some cash out for other investments.

Hi,
Can someone check these legal fees whether there are any abnormalities or overcharged?
Note that this is a 3rd hand house and seller is using the same lawyer.

Thanks in advance.

animegod,
for the snp fee seems reasonable for me but for the loan agreement fee looks like a bit overcharged

SnP is priced lower than usual, LA is higher in the non-regulated portions. Equalized overall. Advise not to bargain for a lower price if the legal firm is doing a good job for you. Normally, for legal firm, bargained price means bargained service. Think twice.

How many percent i can loan for commercial type property? eg. shop lot?

Dear forumers,

As for current industry practice, no-lock-period is defined in this way:

(i) Facility which offered to the applicants will not be subjected to administration fee if the loan facility is terminated due to full settlement by cash, settlement by EPF or disposal of property. Administration fee will be imposed to the applicant in the case of refinancing to the other financial institution, normally at a duration of 3 yrs. Fee is based on a percentage of full facility or predefined fixed fee. (in other words, administration fee = penalty)

(ii) There is no such kind of zero lock in period which include no penalty for refinancing. (It might happens once in a blue moon but the rate will be XXXX)

(iii) There isn't any "no-lock-in" package will be given out at first application in std package by common banks. Normally will require to go through appealing process, thus, take a longer time, normally will be 2 weeks. This feature is available with some of the fixed rate package of the banks or fixed rate package by insurance institutions.

(iv) "No lock in" package will often come with higher rate. ie. 1.2M loan, std package can get BLR -2.3 ~ BLR -2.4% but with "no-lock-in", the rate will be BLR -2. A trade off of worse rate for no-lock-in.

Not every banks can grant you with "no lock in" package, sometimes, it would require some "arrangement" to be done between the bankers or brokers with the internal bank staffs to work out this kind of package for you. Patient is everything to get this kind of package.

Hope it helps.

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Added on October 15, 2010, 12:22 amConservatively, 80% mof of open market value. Can go up to 90% if the location is prime, the rental around is high, demand > supply for that area.

This post has been edited by home_save: Oct 15 2010, 12:22 AM

Seems like the quotations are good then.
Thanks epie and home_save for the advice. Appreciated it.

HI guys...need your help on the best rate (preferably islamic loan) that i could get for the following:

Emerald Hill Condo Bukit Indah Ampang (7th floor)
Size: 1100sqf
Bought RM175k
Looking for tenure 20-25 yrs
MOF : 90%
Current offer i got: OCBc al-amin bfr-1.8 (no lock in period), Kuwait finance house BFR-1.9

Based from my observation, current rental there is minimum at Rm1k and up to rm1.4k. But i think im going to stay there instead of renting it.

Appreciate your advice. Thx all!

Dear animegod,

Regarding the charges of fees, you should be able to ask for the full details of the quotation. If you do have any questions on it, you can ask the office staffs for clarification and they have the responsibility to answer each of items for you as the fee that charged by the firms are highly regulated. They are going to face troubles if they overcharge you (normally, they only can charge you less rather than over charging you)

MOT is nothing to do with the approval of loan. It is related with the ownership of the property. In simple, MOT functions to transfer the property to your ownership. Thus, whether you are able to get a loan or not is not really an issue with when you are going to conduct the MOT. As long as you have agreed to purchase the property, you should have complete the MOT later to finalize the ownership transfer. Sometimes, it might associates with the issuance of individual strata title for non-landed properties as well. You would need to ask your lawyer regarding the arrangement of whole purchase. (It does not make sense that you signed to purchase a property, get a loan to pay your property but didn't transfer the ownership to yours right?)

Take times and talk to your lawyer nicely, ask him/her explain to you. I believe they are willing to share with you on this (as they don't want you to go to their office and shout for troubles) It is just not wise to ask a complex question here and take some amateurs' answers to improve your understanding. Advisable to sit down with your lawyer, talk and understand about it (and may be later on, verify the info with the others as a complement, especially when it comes to what exactly is MOT. I don't think you have a full idea right? )

Just my 2 cents, hope it helps. May be you can share with us on your findings from the legal firms later on.

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Added on October 15, 2010, 1:36 amDear no name,

As per your loan size and specification, Islamic loan is unlikely to get anything better than BFR-1.9%. (It might be BFR-2%, but it seldom happens) You might be able to get a better offer at BLR -2.1% ~ BLR - 2.2% (provided that BLR and BFR are going to be priced the same in the future and you are fine with conventional loan)

I believe KFH does have lock in period right? Since you are going to stay there, it should not be a concern. Advisable sign the KFH offer. You need not to spend your effort in hunting for loan anymore as this is very likely to be the best that you can expect with your specification.

Just an add-on, for all forumers, advised to provide the full address as we as a banker or broker, this is an essential information.

Hope it helps.

This post has been edited by home_save: Oct 15 2010, 01:56 AM

Hi all...

For islamic loan MOF 90% (or more) out of RM474300...can anyone give me better offer than BFR-2.35 whole tenure + no lock in period? That is the best offer I got so far and if there is no better offer, I'm thinking of signing the LO soon. Completed landed property waiting CF, buy direct from developer.

This post has been edited by y2kfirewalker: Oct 15 2010, 03:54 PM

which bank offered bfr-2.35?

I heard from a maybank branch officer that i am able to loan up to 500k house based on 40 years for graduate and the monthly installment is based on 300k loan. and after the end of loan either i will transfer it to my kids or i will repay using EPF. Please let me know if this is possible. also if i buy a condo in kl around 480k, up to how much MOF i can get?? possible more than 90%??

juz to check. Shudnt there be any processing fee 4 any loan app? If im xmistaken, bank negara had disallowed this. Theres 1 bank imposing rm200 4 processing fee

Dear firewalker,

Sign it pls.

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Added on October 16, 2010, 11:53 amHi Pinkdevil,

It is possible. This kind of arrangement is "balloon payment" whereby the monthly installment can be reduced. For instance, 40 yrs of tenure, 500k loan, interest at 4%, monthly installment should be around RM2,090 . But with balloon payment, assumed the installment is almost halved, for instance, RM 1,040. The only problem (or you might consider it to be an "advantage" but for us as financial consultant, this is an "arrangement") with this kind of arrangement is that, with monthly installment being reduced drastically, the unpaid principal will be accumulated and deferred to the last month of the tenure, for instance 200k. When the time comes, you can several options, (i) settle the remaining balance with cash /EPF (it will dry you up, if you are not rich), (ii) refinance it and lengthen your tenure (since you are old by that time, this will transfer to your kid and your kid will bear it). Maybank is well-known in doing this (or, you can say Maybank is "doing well" in this). Think twice when you plan to have this kind of arrangement, there is no such thing of "being so good" arrangement in mortgage. It is either you need this kind of arrangement or not. Most of the time, this arrangement is suitable for 2 kinds of buyers, (1) insufficient cash flow during a short of period of time, when they have sufficient money, they will move on to normal payment mortgage; (2) investor, reduce monthly commitment, can buy more properties, the last payment will not affect or burden them since they are going to sell the properties off. Normal home buyer is not advised to get this kind of mortgage when you consider the consequences of the last payment.

MOF can be 90%~95% if your condo location is prime, hot zone; individual strata title; built by reputable developer. It can go up to 95% ~100% when it includes the financing of legal fee and valuation fee.

Let us know if you do need help on this.

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Added on October 16, 2010, 12:02 pmDear no name,

It is allowed to do so. Maybank is one of them who doing this if you do not request for the waiver of processing fee. The intention of doing this is to reduce the non-serious loan applicants which burden their staffs. Nowadays, people tends to apply multiple banks for loan. In the end of day, you just sign 1 of them. Merely consider that we do have 8 local banks in M'sia, and normal buyers will apply only 3 of them. Imagine that all of us put 1 applications in each of the banks, eventually, it will double up the workload in all the banks. And, somehow, it will frustrate the sales staff. (Pls put yourself as the sales person, when you check the record of the clients, you will see the client had applied the loan from 7 banks and this application is the 8th application. How do you feel? Statistically, you are having a chance of 12.5% in getting the customer. The chance will even go further low when you are being the last one)

Thus, please don't think this is ridiculous for the banks to ask for processing fee as there is a good rationale when they do this. This is especially true, when they know you have apply the loan from multiple banks prior you engage them.

Hope it helps.

This post has been edited by home_save: Oct 17 2010, 10:46 AM

thanks for your reply. Can i know if i opt for this kind of payment, when will i start paying for the princicple. i guess for the first ten years i will only be paying for the interest. Hence there will be no equity in my house? except when my house appreciate?? I am planning to use this payment for investment purpose. Will it affect my second mortgage??