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

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

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 (50% of your payment start to go into principle). This is mainly due to the fact that when you reduce your monthly installment and arrangement a big lump sum settlement during the last month. It will take around 60~70% of your tenure to have significant portion of your monthly installment goes into your principle. Your house's appreciation must be higher than total interest payable at a constant speed and constant rate to ensure there is equity in your property. With this kind of arrangement, you will need to resale or refinance your property in the end of the day/ restructure your mortgage within 1~2 yrs (if you are financially wise). Going beyond that, it will result in (1) your property appreciation is threatened by the total interest of 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).

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Added on October 16, 2010, 6:06 pmHi hAnn,

Not sure what is your "limit" referring to. If you are talking about the cap of refinancing a house, there isn't any limitation on that. As long as you are sure that you will be better off in refinancing, you can keep on doing that. Kindly take the penalty of refinancing and legal cost into consideration as well when you plan to do so. Based on simple rule of thumb, it will need a rate differential of more than 0.2~0.3% to make refinancing a good option. For instance, your current package is BLR -2%, it would need a package with at least BLR -2.2% to ensure you are better off with refinancing. If penalty takes place, the rate will require to be < BLR -2.2%.

Hope it helps.

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Added on October 16, 2010, 6:08 pmNo problem. Our team indeed appreciate infinite support from all LYN forumers all the time.

This post has been edited by home_save: Oct 17 2010, 10:42 AM

[attachmentid=1837923]

Home Save Press (17Oct2010): Board Rate for MaxiHome & MaxiShop:

Best rate quoted for residential: BLR -2.3%
Best rate quoted for commercial: BLR - 2%

Note:
1. Clients are advised to be patient with Maybank application as the procedure of Maybank is much more complex than the other banks. Std approval take 7 working days while special request or appeal will take additional 1~2 days.
2. Rate is board and varies across individual case.

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Added on October 17, 2010, 2:04 amHi 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.

Regards, Chris

This post has been edited by home_save: Oct 17 2010, 02:04 AM

Dear yiivei,

Certainly, our 2011 budget does have something for low-priced home buyer. For instance, the guarantee downpayment of 10% for income earner less than RM3000 (houses below RM220,000) and 50% stamp duty exemption on instruments of transfer for 1st-time house buyers (housing price <350k) while 50% of stamp duty exemption for loan agreement is proposed too. However, the exact date for the arrangement of these benefits yet to reveal (I believe our gov is still "working" on it, as we all know about their efficiency). 50% discount is on the stamp duty instead on the property pricing. For property priced RM245, consider you can get a mof of 90%, thus, stamp duty for SPA is around 3.9k while loan doc's stamp duty is around RM 1.1k. S, the rebate you can expect is around 50% of the total stamp duty.

Just bear in mind, only applicable for 1st home buyer.

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Added on October 19, 2010, 3:28 amHi Develab,

Based on the info above, estimated you have a net income of around 9775. Consider the tenure that you are taking up is 25 yrs, rate at BLR -2% (4.3%), loan amount which available to you is RM 650k (conservative estimation). Just a note, if the rental is unable to be supported by latest and LHDN stamped tenancy agreement, no matter how much you earn from that, the banks won't take that into consideration (for commitment neutralization purpose).

Hope it helps.

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Added on October 19, 2010, 3:41 amDear 007Loo,
It is not necessary to have the same lawyer for SPA and loan docs. Even if you are having different legal firms for 2 process, it will just take additional 3~7days for the complete signing of SPA and loan doc. If you are not in haste, it won't be a big deal to do this. Timing of loan drawdown is mainly dependent on banks' requirements. Some of the banks request for certain original docs to be presented, or, CF to be issued, or etc for the drawdown of the loan. Not sure whether your bank did request for condition of MOT to be completed prior the loan drawdown, you might to check with the bank. If the bank request for that, you will need to ask the seller to provide the supporting to show he is registering strata title in order to ask your loan doc lawyer to prepare letter of undertaking for loan drawdown.

Till to date, I haven't encounter a case whereby, the bank delay the drawdown due to the client uses different lawyers for SPA and loan docs. Normally, the drawdown is delayed due to human factors that caused by either legal firms or banks instead of the appointment of legal firms, or, certain conditions that laid by the banks which the applicants yet to fulfill.

Pricing and efficiency, most importantly, trustworthy is everything when you appoint a legal firm. Certain legal firm is indeed good in pushing the drawdown of the loan and make it happens fast.

Hope it helps.

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Added on October 19, 2010, 3:50 amIndeed, we will never know what the banks are going to do next. Current low rate is slashed under the name of "promotion period" till end of Oct. No one is certain what is going to happen after Oct. Are they going to be the same? extension? or going back to BLR -1.8/1.9 again? This is basically your expectation, for safety measure, get a back-up first, and see what's the next.

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Added on October 19, 2010, 4:00 amHi cutealex,

If your house value is 300k, your loan size most prob is 270k. If the inclusion of legal fee and valuation fee financing cannot make the loan size > 300k, sorry to say, you should expect BLR -2.2% for your loan. For the 50k renovation financing, it comes with the loan but repayment will be seperated, in which this portion of loan tenure can only be 3~10 yrs depending on the arrangement of the banks. OCBC do have this kind of arrangement but they have quota on this.

Give me a call if you need to get this.

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Added on October 19, 2010, 4:05 amWell, to be precise, bankers obtain value from valuers, even within the same valuer firms, each individual valuers might give a different value. So, value provided might differ among valuers.

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Added on October 19, 2010, 4:17 amYes, there are, with conditions that you age <35 or professional/ degree qualification then you have a better chance in getting a 40 yrs tenure. Drawback? Yes, you pay MORE interest.

Just a note, not all banks can offer a loan to a specified under-con property. If the under-con property achieve >50% completion, it might be considered as sub-sales of completed property based on banks' discretion and some banks might require individual title to be issued / CF to be issued/ complete drawdown of previous financier for the loan to drawdown . Thus, the banks which offer 40 yrs tenure might not be able to offer you a loan. Need to look into your purchase details as well. Sorry to say there is no point of asking all loan package details without providing the necessary details to pre-check whether the bank can give you a loan or not.

Kindly provide:
(i) Project name
(ii) Developer name
(iii) % of completion, date of completion

for the bankers / brokers to have a check on whether their banks are offering loan to it or not.

Hope it helps.

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Added on October 19, 2010, 4:19 amYes, it might happen for this kind of scenario as the property is completed. CF available or not, not an issue.

This post has been edited by home_save: Oct 19 2010, 04:19 AM

Pushing it to highest limit, both of you can get a loan of 450k (only for some banks), provided it is with tenure 40 yrs at rate BLR -2.3%. Should have no problem in getting a 2 sty house over Setia Alam.

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Added on October 19, 2010, 4:15 pmPBB, BLR -2.1 ~ BLR -2.2% provided with good credit profile and adequate value of financial asset in hand. Let me know if you do need a loan with PBB.

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Added on October 19, 2010, 4:17 pmYes, but there is a cap over the price of the 1st house. Going beyond that, there will be no rebate on the stamp duty.

This post has been edited by home_save: Oct 19 2010, 04:17 PM

Dear Destroyer,

Advice for the selection of bank require a study on your profile and the property that you bought as the specifications that you are looking at, require certain conditions to be met. Sorry to say, we won't simply suggest a bank to our client if there is too much uncertainty associated with a case. For a loan amount of 400k, tenure 40 yrs, BLR -2.3% would need you to commit a minimum monthly installment of RM 1,672. Just an estimation.

Dear yiivei,

(i) There is circumstance whereby the under-con properties' legal fee for SPA and loan doc are being "absorbed" by developer (ie. Kinrara Residence at BK6 by Mah Sing). If the developer inform you that they are going to have this kind of arrangement, normally, the legal firm which issue the booking receipt will be the one who tied up with the project. Just ask the developer which legal firm that they appointed to prepare the SPA and call the legal firm to double confirm whether such arrangement is true or not. Normally, the developer will only absorb the legal fee while the stamp duty and disbursement fee are paid by the purchasers. There is no pro and con for the developer to absorb the SPA charges as I think they had factored it into your purchase of property. If they do offer it, then utilize it.

(ii) A question, what is your OP stands for?

(iii) Both of your relationship need to be officially declared as husband and wife to execute the withdrawal from Acc II to pay for the DP.

Post moved to Article 3. Is BLR is going to rise? - Past, current and future

This post has been edited by home_save: Dec 20 2010, 12:46 AM


Attached thumbnail(s)

(11Nov2010) Revised SCB Home Loan Board Rate (BLR geared home loan products):

Post moved to [Home Save Consultancy] Mortgage Packages in One T, Mortgage packages Update

This post has been edited by home_save: Dec 20 2010, 12:47 AM

Dear Teddie,

The turnaround timing for the issuance of UOB's LO should be around 48 hours after the confirmation of approval. Prior to Sep, their turnaround time is around 36 hours. There is some delay over the turnaround time due to UOB structural changes in their mortgage arm but shouldn't be 2 weeks. Most probably the problem is associated with the banker who attended you. We do have clients who face the situation whereby the loan is yet to approve, but the banker informed their customers that the loan had been approved to keep the customers waiting for the offer. UOB might take an approval turnaround time for around 3~4 weeks if clients' application is "unusual" (appeal for special rate & conditions, non-EF undercon cases, etc). Std approval should be around 7~14 working days.

Advice: (i) You can go to other banks and pretend to apply loan from them / check with Bank Negera, ask them to check you CCRIS report and see whether is there any approved loan from the banks or not. CCRIS report is able to show whether is there any loan had been approved (the loan amount as well) but they might not be able to identify which bank had given you a loan. If there is any approved loan, thus, it will enforced the confirmation given by the UOB banker. Otherwise, it is the time you need to check with the banker on his/her "confirmation". You have to do it yourself as the banks need your signature on the application form to check your CCRIS.

Or, (ii) call to the branch (where the banker situated), ask the receptionist to direct your call to branch manager instead of the banker (pretend that you do have a business to discuss with the branch manager, advisable not to be in a "complaint tone"), clarify your frustration in a good manner to the branch manager and ask him/her to verify whether your loan had been approved or not. He/she should be able to give you confirmation within seconds (they might not entertain you if you start the call in "complain mode", so you should know what to do). Whether the loan is approved or not, you should know what is the next that you should tell the branch manager right?

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Added on November 20, 2010, 1:52 amDear Titan,

It depends on the conditions specified in the letter of offer and loan agreement, and the type of loan package as well. For std term loan, minimum prepayment amount will be imposed (ie. min 1,000 and multiple of it, min 5,000 and multiple of 1000, etc) and std notice of 1 month must be given (usually we call it a "floor"). Some banks might put a "ceiling" as well, ie, prepayment which cause the utilized amount dropped to less than 2% of the loan will constitute to mandatory full settlement / forced facility call back.

Prepayment ceiling and floor limit might not be an issue if you are using semi flexi / full flexi / full OD type of home loan as these kind of facilities had virtually remove the ceiling and floor as the interest will only be calculated based on the difference between the remaining loan's outstanding and balance in CA which tied up with the loan account.

Thus, you need to study the "Prepayment" clauses which stated in your LO carefully if this is your major concern.





This post has been edited by home_save: Dec 20 2010, 12:50 AM

Suggestion is go for refinancing if the lock-in period had lapsed. It will drive your current financier to counter offer at a better rate (ie. HLB, PBB), thus, you don't have to write this kind of letter to "beg" for a better rate.

Dear sowhatz,

In fact you don't need to refinance. What you need to do is to submit an application to the other banks and let your current financier to know that you have the intention to refinance if the rate is not going to be adjusted. Normally, some of the banks will react immediately and counter offer you with a better rate, especially PBB and HLB. If the interest savings that incurred by the interest rate differential is far more greater than the cost of refinancing (legal fee & etc), it will further reinforce your ground to proceed on with that.

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Added on November 23, 2010, 2:35 amWell, sometimes applicants have to understand that there isn't any standard documents or fix guidelines when it comes to INCOME DOCUMENTATION. In fact, each of the individuals, especially those who self-employed, have their own way in proofing their income. Ultimately, the banks only concern about 4 major points:

(i) Who are you?
(ii) Are you able to pay back the loan?
(iii) Are you going to pay back the loan on time?
(iv) Does your loan facility provide profitability to the bank?

Most of the time, proof of steady and sufficient income will be the major issue as many individuals are just unfamiliar with how to do it correctly (or simply, they just don't want to do it correctly on purpose). Somehow, some of the bankers or consultants are just unfamiliar with how to proof the applicants' income. Thus, they just ask for all the docs from you and let the processing officers to check on them.

To be frank, certain income docs might put applicant in advantage while some will decrease your chances in getting a loan. Thus, looking for some experienced bankers will be good for you as they will know the tricks and technique in presenting your income docs to the processing unit (those guys who approve your loan). Sometime, we will ask for full set of documentation from a client too to filter the best representing income doc for him in regardless whether the documents are compulsory or not. Just a point to add, compulsory docs which defined by each of the banks might differ. Some of income docs which accepted by some banks as a good proof might not be a solid reference for some banks. There are too many fraud cases in loans and thats why banks are always cautious of it. Fraudulence of documents are not as hard as you think with current advance technology.

Think about it. Is it really an issue when it comes to "compulsory" or not? If it will improve your chance in getting a loan or even a better rate with just a mere faxing/emailing/scanning some pieces of doc to the banker and let them to work on it, why don't you cooperate with them? Anyway, bankers are just doing their job. There is no point of mentioning that "XXX bank do not request for this doc but your bank request for this doc" or "XXX bankers mention this doc is not compulsory...".

Have a good day

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Added on November 23, 2010, 2:39 amYou can download the listing right after our officers initials, titled "Mortgage Doc Listing". It is a general list of docs that the applicants usually have to prepare. The banks might request some further supporting docs from you as well. Hope it helps.

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Added on November 23, 2010, 3:06 amDear de.crystal,

To be frank, the usage of FDR in pricing a loan is not favorable to loan applicants but will be indeed very good for the bank. Imagine that EON bank get all the money at a price of FDR and lend it out at FDR +1%, so the bank will indefinitely enjoy a profit margin of 1%. It seemed like the latter statement has nothing to do with my first statement. Let us look at the whole picture, if you are taking FDR geared package, currently EON bank is offering almost the best FDR in the market, at 3%. So your loan package is effectively FDR +1% = 4%, virtually, you are getting a package with BLR -2.3% (BLR=6.3%). If you look at rate by itself, it does not make any difference as both of them implied the same effective interest. Problem comes in when you study the fundamentals of the rate. Look at FDR, does FDR offered at a similar rate across the banks? NOPE! Does BLR almost the same across the banks? YES! Problem 1, poor reference for comparison of products.

Here is another problem. Currently, only EON bank is offering FDR geared products. This is a relatively weak product which hardly can be judged. When everybody in the town would know BLR - 2.4% is a good rate as BLR is 6.3% for majority of the banks, are you able to judge your rate is good with FDR +1 %? You might be able to answer "yes" now but I am afraid, most likely you are just unable to do that within seconds as you might need to call the EON customer service line to check what is their FDR rate after 3 months. Although BLR and FDR are individually announced by each individual banks, banks tend to have more control on the FDR than BLR. Any changes of BLR is relatively unlikely as compare to FDR. Imagine Bank A intend to lower its BLR, it will think twice as its move might eventually trigger a price war while if it is vice versa, it will put your banks' package at disadvantage. This is totally different for FDR. Go to check from the banks, how often do they reprice the FDR? FDR is indefinitely good the bank as any changes of its cost of fund will eventually reflected in their clients payment directly. It will take a longer time in changing the BLR than changing a FDR.

It is a matter of high rate instability for FDR product and its nature of poor reference.

Regarding your (2) point. Well, for loan applicant, it is just merely an arrangement. Some ppl might like it but some might not. Just your preference. But for banks, it definitely make sense. As making the repayment amount smaller, it will intend to reduce the tendency of default. And, most importantly, they can identify the potential late payer or defaulter earlier by reducing the potential lost to the banks. If you default on the first 2 payments of that month, then the bank will eventually alerted that you have repayment problem and can check on you earlier. (Since you default on first 2 payments, you will be very likely to default on the following. You might not believe it, but this is the truth) In std payment, they just can identify you as the potential problem maker after 3 months. 3 weeks or 3 months, which one is a more efficient problem identification? I believe you do have an answer now.

Enjoy your day.

This post has been edited by home_save: Nov 23 2010, 03:06 AM

My dear, facts tell everything, below is a summary of FDR & BLR movement for EON bank for the past 2 years, the revision of FDR will be more frequent if you lengthen the scoop of study to the past 5 yrs:

Revision of FDR rate - 12-Month deposit (EON Bank, p.a.)

21 July 2010: 3%
15 Mar 2010: 2.6%
20 Dec 2009: 2.7%
28 July 2009: 2.5% (Revised, but without change for this tier of interest rate)
23 April 2009: 2.5%
16 Feb 2009: 3%

Revision of BLR rate - EON bank

14 July 2010: 6.3%
19 May 2010: 6.05%
11 Mar 2010: 5.8%
10 Mar 2009: 5.55%

The direction and the magnitude of movement of both rates are the same theoretically and they do incurred the same profitability to the banks, however, just that the fluctuation of FDR is greater. Not sure how comfort does the officer told you that it is vice versa. A statement which made without a solid ground of proof is just nothing more than drawing in the air. Sometimes the banker dare to show the customers with a simplified historical movement whereby they omitted many minor adjustments of FDR (in which less than +/- 0.15). Increment at a lower rate in FDR is definitely can be true as they break each of the increment into smaller pieces and increase it to the targeted rate on stages basis. Not comment that EON packages are bad. Just a question of whether the applicants can go along with its potential risk, nature and the consequences or not. If it is a bad package and not welcomed, definitely, it can't survive in the market.

What do you want to know about OCBC packages?

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Added on November 24, 2010, 12:04 amYour term of "professional" is quite ironic.

Majority of the banks apply a rule of thumb that your overall monthly commitment shall not exceed 80% of your net/gross salary, depending on which banks you go to (some of the banks might vary in commitment ratio, and possible go up to 100%, ie. OCBC if certain conditions are met).

In a simpler manner, every monthly commitments which show up in your CCRIS report (mainly to be current home loan, hire purchase, personal loan, credit card min payment) will be summed up, plus the estimated monthly installment of your new loan application and with all of these, it will project a possible total commitment that you are going to have. If the total sum of monthly installment is estimated to be X, and Y to be your monthly gross/net income. Your X/Y * 100% shall not exceed 80%. Breach of this ratio will lead to harder approval of your loan unless you can provide solid proofs that you do have other sources of income (tenancy, dividend, annuity, savings plan income, etc) or very strong pool of savings (huge amount of FD, ASN, Sukuk, huge balance in SA or CA). Bear in mind that 80% is just a general number that we used. Each of the banks have their own guideline in study their clients' credit profile and repayment ability.

Assuming that the individual that you mentioned is totally clear of any commitment with only estimated 1.8k home loan commitment (assuming 380k loan, 30 yrs tenure, EI 4%). His available capacity of new loan commitment is around 4.2k/month. Taking a 30 yrs tenure loan with EI 4%, he should be able to have 900k of new housing loan. A note that have to highlight, this is the amount which projected based on the limited information and assumptions. The number will vary when other factors taken into account.

Have a good day.

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Added on November 24, 2010, 12:25 am

Update (24 Nov 2010): We cover the loan applications for banks:

Malayan Banking Berhad
Hong Leong Bank Berhad
Alliance Bank Malaysia Berhad
RHB Bank Berhad
Public Bank Berhad
EON Bank Berhad
Affin Bank Berhad
AMMB Holdings Berhad
OCBC Bank (Malaysia) Berhad
Standard Chartered Bank Malaysia Berhad
United Overseas Bank (Malaysia) Berhad
HSBC Bank Malaysia Berhad
Citibank Berhad

This post has been edited by home_save: Nov 24 2010, 12:25 AM

No problem. Just a question prior I try to clear your doubt. What kind of loan facility does HSBC offer you? Term loan/full flexi/others? As both of statements can be correct when it comes to differ type of facilities and arrangement.

For FDR, the effective implied interest rate which derived from FDR or BLR should be the same over the long run (for the whole loan tenure), just there will more some differential over the adjustment during the short run (less than 5~8 years). Thus, this kind of loan can cater the need of the clients who intend to service the loan for a long period of time (sufficiently long to mitigate the impact of short run FDR fluctuation). Calling EON to find out the FDR is a concern but not that critical as I believe for standard home buyers, they won't really keep track on the FDR unless there is some attractive offers in the market which lead them to have a a check on the FDR and take a longer time in making the comparison.

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Added on November 25, 2010, 1:51 amDear airline,

Our new policy deter LYN Officers to list any packages and offers from the banks due to recent update of representation & information restriction. Mainly due to there are many factors and practices of banks which might influences the final offers and the range of the rate given, we no longer post any package or rate in LYN, but we will provide a constant update of rate sharing in our FB discussion board. In order to increase the reliability of information, all the rate being posted in FB are the actual rate that our consultants ever get from the banks and you might find some deviations over the rates that posted by the banks and our version. Some of the banks can post a very attractive rate in their advertisement but they seldom give it to their clients (may be 1 out of 100) or there are simply too much of terms and conditions to complied. This kind of rate we seldom share it with others as the possibility in getting them are relatively thin.

Certain examples can be given is that:

(i) Maybank: Promote at BLR -2.3 for residential and BLR -2.0 for commercial. In fact, BLR -2.3% might be granted with conditions of pledging FD, slashing margin, provision of detail documentations or etc, the range of residential rate should be around BLR -1.8% ~ BLR -2.3%. For commercial, BLR -2.0 is a norm given to under-con commercials from reputable developer, actual range should be BLR 1.4% ~ BLR -2.0%. Funny point about Maybank, similar profile clients will get different kind of approval if the loan is going through different processing officers. Average application turnaround time is around 7 ~14 working days depending on the efficiency of officers. Sadly to say Maybank does not have an efficient control over this. Most of the times, Maybank will be the one which request the most documentations from applicants. (To the extent that, they might need your marriage certificate, full audited accounts, etc that you might not see them in standard doc listing)

(ii) HSBC: Promote residential rate at 2 major tiers, BLR - 2.0 and BLR -2.2%. Best rate ever quoted is BLR -2.4% with many conditions to be complied. Deterioration of rate by - 0.05% might happen if customers do not take MRTA. Mandatory MRTA by at least sum insured RM 30k or min 25% of total loan amount, tenure covered of at least 5 yrs must be taken up to be entitled for the board rate. Do not finance vocational type or resort property.

Why bankers never tell the full stories? Well, everyone like a good story although there is a cruel truth behind. And mostly importantly, if they ever be honest with you, will you give them a chance to proceed on with your application?

This post has been edited by home_save: Nov 25 2010, 01:51 AM

There is some revisions regarding the margin which provided to Zetapark development. Due to the nature of SOHO, revision is carried out recently as there is a blurring identity of residential and commercial. Initially, some of banks are providing residential packages for SOHO type of development (thus, residential rate and margin, 90% are given), however, recent study found out that majority of SOHO development turns out to be purely commercial usage instead of the hybrid usage of residential and commercial. Margin that given by the banks are lowered. Majority of the banks are giving 80% MOF, however, Maybank is offering 85%+5% for this development as per latest update (initially, 90%). You can ask your friend to engage Maybank for loan application but please note that the application might take a longer time as all the applications of Zetapark will be remained slow progress until Maybank regional management finalizes their reviews on this development.

Please let us know if your friend do need our support in loan application.

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Added on November 29, 2010, 2:55 pmI would say that it depends on what exactly is your arrangement for your home loan. Your arrangement is the decisive point.

As both of package is on a daily rest basis, the main question here is that which of the packages (semi flexi/full flexi) shall work better for you. (I do have provided a detail analysis on what is the differential between monthly rest and daily rest before in this post. Link: http://forum.lowyat.net/topic/701749/+2524, archive of this discussion can be found in our FB's discussion board) This comes back to your arrangement and repayment habit:

(i) Are you going to serve the min monthly installment every month only? If you aren't;
(ii) Are you going to pay additional amount? If you are;
(iii) What is the amount to be? Is it going to be >1000? On a regular basis? Or, you just pay additional when you have more?
(iv) Are you going to withdraw any amount after prepayment? How frequent is it going to be?

All of these questions are crucial to be answered when you make your selection.

I would just provide some highlight on how all of these 4 points interlock with semi-flexi/full-flexi loan and yield the best outcome. Not sure how is your understanding about semi-flexi/full flexi product, I will post a discussion which is for fundamental understanding of semi-flexi/full flexi package in next post (We would often assume semi flexi package as term loan as majority of its feature is quite similar to term loan but it offer more flexibility than term loan but less flexible than full flexi) As of now, I would assume you do have some fundamental understanding regarding both type of facilities.

We have to understand how the prepayment of both semi-flexi and full flexi works. (Please find out the detail from the respective clauses. For semi-flexi of OCBC, you can find out the details from the “Main Terms and Conditions for the Banking Facilities”, page 5, Clause 6., For full flexi HSBC, from the “Annexure”, page 1, Clause 2 & 3)

For OCBC semi flexi, you are required to provide notice in writing prior the prepayment. Negotiable for writing exemption) Prepayment shall be subjected to a minimum amount of RM 1000 and large prepayments shall be in multiples of RM 1000 (or such other amount specified by the Bank) Charges per withdrawal is RM 10. Paperwork required.

For Full Flexi HSBC, it will incur RM 10 of monthly facility maintenance charges and RM200 setup fee initially. However, it allows any sum of the amount being deposited into your current account and interest will only be charged on the difference between your outstanding loan amount and your positive balance in current account. Withdrawal of additional amount paid previously is indeed simple, as the balance is maintained in current account rather than loan account; you can just write a cheque or simply, transfer them in any manners.

When you look at features which offered by both the packages, human mindset will tell you that indefinitely HSBC seemed to be better. However, these kinds of features are not a need for everyone. Assuming that you have bunch of idle monies and high financial turnover, HSBC might be a good option for you as you can deposit your idle monies to the account for interest savings purpose and withdraw them at any time, any amount with relative lower cost but you have to pay to maintain this kind of flexibility.

If you tend to pay it regularly and in a fixed amount while prepayment is not that frequent. OCBC package might works for you as the full flexi feature is not a need for you since you are not going to pay more and withdraw frequently.

HSBC Full flexi offers higher flexibility in term of prepayment and withdrawal at a lower cost if your frequency is very high. However, one of the concerns over the so called "full flexi" package is its actual practice, calculation and convenience which implied over the long run. As the product itself does not have a long history, no one is certain about whether the interest savings can be true or not. It still need to take around a few years time for the public to realize its actual outcome. As per current practice, Full flexi of Bank A is not identical to Bank B's Full Flexi and it might varies across the time and offers as well in term of practices and conditions. So, there is risk and uncertainty over the full flexi product as well. Unlike the terms loan which is identical across the banks.

Please take the rate differential into consideration as well if it do exist in the offers. As interest savings due to a lower rate might offset the inconvenience and cost of withdrawal over the long run. If the rate is the same, then put it aside.

In a nutshell, think about what you are going to do with your home loan in near future. Arrangement rules out every aspect. And, always remember that “best” packages might not work for everyone.

This post has been edited by home_save: Nov 29 2010, 03:26 PM

SCB product. Details can be found in: http://www.facebook.com/topic.php?uid=1037...687771&topic=50

Dear James,

OCBC: You cannot do that, it might account to full settlement and bank reserve the right to pull back the facility if you prepay the full amount of your loan as this is semi flexi loan. No matter how much of prepayment you dumped in, as long as it is not a Non-redrawable prepayment, you have to pay the installment regularly. Charge of withdrawal is RM10 per transaction. Paper work required.

CIMB: Full flexi will not incurred any cost when you withdraw, similar as your current account. Maintenance charge of RM 10/month and setup fee of RM200 might required. Installment will be automatically deducted from the money that you dumped into the current account.

Hope it helps.

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Added on November 29, 2010, 7:39 pmHome Save's Real Estate Update:

Upcoming Project Preview of Kinrara Residence

Property Specification: 2 & 3 Storey Semi-D, 40' x 80', from 3138 sf
Indicative Price: 1.3Mil ~ 1.5Mil
Date: 4th & 5th December 2010
Time: 10am to 4pm
Venue: Sunway Resort Hotel & Spa
Developer: Legend Grand Development Sdn Bhd

Exclusive Offer for Maybank privilege customers (Special offer valid on preview dates only):
1. Special Rebate of RM10k
2. Free 1st 2 years of maintenance fee
3. DIBS during construction period
4. Legal fee of SPA and LA are all borne by developer

Attendees are required to present their original copy of invitation letter and voucher to join the preview and enjoy the offer. Serious LYN forumers are welcomed to obtained the invitation letter from Chris or via mail, home_save@live.com, limited letters available.

Sample Invitation Letter and Voucher:




This post has been edited by home_save: Nov 29 2010, 07:42 PM

Hardly, I would say. Even with longest tenure and best rate, your monthly installment is around 1.6k. Your monthly installment over your gross salary 1.6k/3.3k is around 48% which had breached the 40% rule of majority banks. Most likely need to bring in a guarantor / joint application. Need to review your credit profile and financial stand to know whether you can secure a loan from the banks or not. We can arrange a time and talk about this. Let me know when will you be available. Here is Chris.

Well, banks do not earn a single cent from the stamp duty but is Malaysia Gov. Nothing much we can do about it, vote for those who promise to reduce the stamp duty in the future.