Well, good luck. Tiger HQ mortgage bankers are quite inefficient due to some structural problem of Tiger. Loan > 1M need to go through a 3 weeks long application process as your banker need to present your financial stability to top management for preliminary examination. If you never hear from them for days, I think most probably it stuck in processing office (and it happens always) or if your application goes to some veterans, they might just put your application aside, they won't bother it if your loan size is just too small. Just their culture, no comment.

For joint application of gf/bf, foreign banks might be a good option as they might have a looser restriction on this as well.

This post has been edited by home_save: Sep 29 2010, 01:18 AM

Hi Gal,

HSBC can do it. But require loan > 1M, priority customer, MRTA compulsory(full tenure), clean profile, have esxiting facility with HSBC (with good payback record), pledge FD. Fulfill all the requirements then you can do it.

Hi raven,

Pls provide me with the details as below, I could help on this. Real Estates are welcomed to have our valuation service as well and we could work out the best package for our clients efficiently.

Details that required: (i) Full Address, (ii) Build-Up Area, (iii) Renovation detail + initial renovation cost. (iv) property type, (v) intermediate/end-lot/corner (vi) Land Area

PM the detail please.

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Added on September 30, 2010, 11:01 pmDear Gal,

As banks have their owner panel valuer, for refinance case & Sub-sales, it is advisable to do it reversely. (Normally, we go to the banks and ask for the package and go through the valuation) Check the value from valuers and opt the highest value, then we figure out this valuer is which banks' panel and we will get a loan from that particular bank.

Well, sometimes, this is another trick that our consultant always practiced, for the sake of saving time by getting the loan from the right banks and avoid buying any over-priced properties.

This post has been edited by home_save: Sep 30 2010, 11:06 PM

Hi Gal,

No problem, charges will be a drink at mamak stall. This should be good enough.
Will check for you. FOC unless you gonna to ask me to check bunch of properties

This post has been edited by home_save: Oct 1 2010, 12:44 AM

Hi Cwhong,

BLR - 2.0 ~ BLR -2.2 is applicable to you. Rate granted is mainly dependent on property location, loan size, profile. You can look for a bank with the most competitive rate, but they might not willing to grant you that rate or even a loan due to many reasons. My advice is, go for as many as possible and sign the best.

Hi ryujimitsui,

To be frank, it depends on how you think of this facility (this is full flexi loan package, available with other banks as well, like PBB, HSBC, SCB, HLB...). Certain clients might think it is a good facility to them as they have quite a large sum of idle money to keep in the CA and offset the interest incurred by the loan while some consider that it is not a good option. Basically, the latter kind of clients are more investment-oriented. Considering you make a loan of 1M and you keep 500k in the CA. In a simpler manner, assume the current rate of interest is 4%, you have save 4% interest of 500k, which is around 20k. However, the latter kind of clients have a different mindset that if they are able to invest in other option that yield more than 4% return, it won't convince them to take up such facility. Most of the time, ppl will just tend to use this facility as they seldom have any options that can provide them with a return of more than 4%, sometimes, with a structured MLTA, it will save more interest than utilizing a simple full flexi package. The full flexi might be a good hedge against high rise interest rate during bad economy outlook (provided you have plentiful of money).

It is too late to ask for suggestion now as you don't have sufficient time to go through another cycle of loan application unless you drag the signing of S&P or you appoint your own lawyer to do both S&P and loan doc for you simultaneously while pending for the next loan. For your loan size, the rate can be around BLR -1.9 ~ BLR -2.2, subjected to profile variation and property financed.

Next time, better to have the consultation first prior make any move (in regardless it is going to be professional or amateur). It might helps a lot in term of getting a good offer and cost & time savings in other aspects as well.

Hi moody,

Consider BLR = 6.3% (MI=Monthly Installment, sales price at 160k)

Scenario 1: Mof: 90%, Tenure: 30 yrs, BLR - 1.9%, MI: 721.10
Scenario 2: Mof: 90%, Tenure: 20 yrs, BLR - 1.9%, MI: 903.26

Scenario 3: Mof: 90%, Tenure: 30 yrs, BLR - 2.0%, MI: 712.61
Scenario 4: Mof: 90%, Tenure: 20 yrs, BLR - 2.0%, MI: 895.54

Scenario 5: Mof: 90%, Tenure: 30 yrs, BLR - 2.1%, MI: 704.18
Scenario 6: Mof: 90%, Tenure: 20 yrs, BLR - 2.1%, MI: 887.86

Scenario 7: Mof: 90%, Tenure: 30 yrs, BLR - 2.2%, MI: 695.81
Scenario 8: Mof: 90%, Tenure: 20 yrs, BLR - 2.2%, MI: 880.22

Scenario 9: Mof: 80%, Tenure: 30 yrs, BLR - 2%, MI: 633.44
Scenario 10: Mof: 80%, Tenure: 20 yrs, BLR - 2%, MI: 796.04

Computation above might varies due to minor differential, can be used as reference but not the exact monthly installment. MI might fluctuate, corresponding to the movement of BLR and the loan packages' features. You can download the mortgage loan calculator which developed by our IT team which right below my initial and calculate your monthly installment by factor in your expectation of BLR movement + quick settlement's additional payment.

Hope it helps.

Post had been moved to Article 5. Understanding the terminology: "Daily Rest" & "Monthly Rest" - Implication on your interest cost



This post has been edited by home_save: Dec 20 2010, 12:41 AM

Dear Ryu,

Nothing will come for free. Monthly maintenance charge will be RM 10 and RM200 for initial setup charges, consistent among banks, however, SCB does promote with the waiver of initial setup charges now but SCB full flexi has a cap of prepayment.

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

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 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

Hi Bryon,

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

hi MattChan,

For auctioned property, the loan package will be similar to the others in the town. In fact, it might be adversely affected by various negative issues as well. Major concerns will be the property location and its condition, this is especially true for the properties located in Rawang or some unfavorable location. Certain properties without proper upkeep will lower down the fundamental value of the properties and thus, lower margin.

Auctioned property can get a similar package as the others as well. Just a point to take note, as the property is auctioned by the banks, banks will have more information about the house, especially in term of its negativity. If the property does not turn up to be a good property, it will eventually lower your margin and push up your rate significantly. Just keep in mind, most of the time, auctioned properties might have some "problems" with them, banks will definitely know more about them and you will suffer from obtaining a worse package. So, keep in mind, avoid getting any "suspicious" properties in the auction. It will ensure you get a good house and with a better chance in getting a better loan.

But, definitely, auctioned properties do not priced well in the marker due to our culture and belief, thus, you cannot put a high expectation that you can get the best rate in the town with it. Hope it helps.

Dear beast_doadore,

Normal practice would require you to make your selection of property, book it with an earnest booking fee (2~3% of your property price). With a booking receipt in hand, you can use it as a proof of your intention to purchase and apply a loan from the bank. MOF is uncertain, as this will mainly dependent on your property location and other properties details as well. Mostly will range from 80% to 90%. BLR -2.2% shouldn't be a problem. Consider your age at 25, your max tenure can go to 30~40 yrs depending on banks' discretion. Conservatively, we assume you get a 85% mof, 30 yrs tenure, BLR -2.2%, property sales price at 280k, your monthly installment will be RM1,150 (you do your own calculation, download the mortgage repayment calculator right below my initial). This would require your net income to be at least RM 2900 per month (provided you have no other commitment yet)

Based on assumptions above, legal fee for loan document will be est 4.2k, stamp duty at 1.2k and valuation fee 0.6k. These are the common cost to be incurred and you have prepare for them if you are not intend to finance them into the loan (or, simply, the bank don't allow you to finance them into the loan)

Hope it helps. Let me know if you need to hunt for a loan.

Have a good day.

Post removed

This post has been edited by home_save: Dec 20 2010, 12:41 AM

Dear animegod,

I think the 5k should be sufficient to cover the stamp duty, legal fee for loan doc & may be the valuation fee as well for your loan package. Standard pricing of legal fee for your loan amount will be RM 3,862, stamp duty at RM 964 while valuation fee will be RM 600. All together it will be about RM 5,426. (If the bank did require you to bear the valuation charges). S&P fee is solely born by the loan applicant and banks will not finance this portion of legal fee. Most likely you are not going to top up for these 3 kinds of charges (except for S&P).

If you are able to negotiate for a lower price for your legal transaction, the difference between the actual payment and the financed amount will be refunded by your lawyer (both of you have to talk about it prior any action to be carried out and agree on this kind of arrangement). For instance, you negotiate for a lower charges at RM 4,426. The firm will get the full pay from the bank (since it is financed by the bank) and they will refund the RM 1,000 difference to you. Minor variation in arrangement might happen as it is largely on a case-to-case basis. This is basically how it works.

Hope it helps.

Post moved

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

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.

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