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??

hi all, 1 simple yet no whr to look up question i hav here... is thr any limit in refinancing a house or is it possible to re-refinance a house which is in refinanced loan?

home_save,
i really respect u in answering all questions regarding loan packages, u r wise man....keep up the good work bro

if i need a loan i will definitely find u 1st

Hi Pinkdevil,

It is estimated that on 20th ~25th year, you will start to service a significant portion of your principle for a loan tenure of 30 yrs. This is mainly due to the fact that when you halved your monthly installment, the unpaid interest will go into your loan account as well, thus, greater sum of interest deferred will roll big when the time move on. Consider the interest on interest is stacking up. it will take around 60~70% of your tenure to have significant portion of your monthly installment goes into your principle. Unless your house's appreciation is higher than interest accumulated at a constant speed and constant rate, there will be no equity in your property. With this kind of arrangement, you will need to resale or refinance your property / restructure your mortgage within 1~2 yrs (if you are financially wise). Going beyond that, it will result in (1) your property appreciation is highly threatened by the interest accumulated / deferred within the loan, and (2) your purchase will turn out to be a speculation instead of a promising investment, in return, it will only improve your cash position throughout your tenure. Basically, it won't affect your second purchase as long as your income and financial position is good enough (and, you must be able to show that black and white).

Thanks Homesave. I am actually looking to buy my first condo using baloon payment for investment purpose. and if I borrow 500k loan by using the 300k loan 40 years repayment. for the first 20 years i will have no equity in my house. Therefore, if my monthly income is 4k. Am I able to get a second home by using the first condo's interest income(since i have positive monthly cashflow from the first investment)?? i mean do banks take interest income into account when approving loans? if not what is the method i can to get a second house loan(for investment purpose) after i use baloon payment for my first buy??

Thanks again for your patience.

Hi pinkdevil,

Basically, judging based on the description given by you, I don't think the 1st purchase is going to affect your chance in getting the second house, provided that (1) you do the complete set of "paper work", and (2) your overall commitment does not breach the baseline of the bank.

Not sure what did you mean by "borrow 500k loan by using the 300k loan". I would assume that you meant that you purchase a house which worth 500k but only borrow 300k to finance your purchase, tenure 40 yrs. Consider 4.1% of interest, your normal monthly installment should be 1.2k. Assuming the arrangement of balloon payment reduce the installment to 0.6k, this is the number that will show up in the CCRIS. Consider you are able to rent the unit out at 0.6k, with a proper documentation of tenancy agreement (with LHDN stamp), you can show to the bank that you have a source of income that is able to mitigate the impact of the 1st property's commitment. Thus, your position is exactly the same as "you are having no mortgage commitment at all". Tenancy income will help you as well, thus, proper documentation is essential. With this, you can go for the second house and have a better chance in getting a better termed loan.

Let me know if you need any help in getting a loan.

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!

hi all, 1 simple yet no whr to look up question i hav here... is thr any limit in refinancing a house or is it possible to re-refinance a house which is in refinanced loan?

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 am

Dear 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.

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.

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

Hello,
I just bought a sub sale unit which still under construction. According to my S&P lawyer, since the transfer only need to be done when the unit is ready for handling over, so i still have plenty of time to think about the loan arrangement. But looking at the current loan packages, i'm tempted to secure the loan package now as the rate and the terms are really attractive. FYI, the unit will be ready by mid of next year according to the developer.
Should i apply for the loan now or should i not? any opinions?
Thanks.

Dear all,

i want to apply Home loan around RM350k. (RM300k home value, RM50k for renovation loan).
i 've check with UOB bank, they said no finance on the renovation.

how about other banks ?
My aim is:
1) RM300k home loan + Renovation RM40k (can charged into loan amount)?
2)Location: Taman Bunga Raya, Setapak. Near TARC.
3)Condition : 4 rooms, 2 air conds, light renovation and new paint..
4)Land size : Single Storey , Intermediate lot, and about 118 sq meter.
5)Hopefully can get BLR -2.3 or -2.4%

Please do let me your package or other alternative... many thanks.

please PM me or sms me at 0176494811

valuation price varies thru different bankers...