Post had been moved and summarized under "Application Documents Checklist".

This post has been edited by home_save: Dec 19 2010, 11:30 PM

Hi MNet,

Consider that you can obtain a tenure of 40 years, the maximum amount of loan that you possibly secure is around RM 210,000 based on current best rate. Monthly installment is estimated around RM 870~950. However, trust me, if you are the only one who pay for it, you will need to eat bread for every meals.

It is advisable to calculate the monthly installment that you are afford to pay and we can estimate the loan within your safe range. It is not a matter of how much you can borrow, it is all about how much you can afford.

Thanks.



This post has been edited by home_save: Dec 19 2010, 11:31 PM

Hi Acethriller，

Objectively, the mortgage services provided by BSN is moderate as compared to the whole industry. Most of the time, quality of services are highly dependent on the bankers who serve you. Based on our past few months' experience, the non-banker processing of OCBC is the most efficient among the others, and you can get such services from the outsourcing unit of OCBC. The loans that we applied on behalf of our customers normally get their approval within 2 working days upon the submission of full documentation and legal fee is quoted at a reasonable rate.

Thanks.



This post has been edited by home_save: Dec 19 2010, 11:31 PM

Dear Prototype,

We can give a try on your case as the requirement of each individual banks vary from the others. Based on our experience, if you are working for MNC or Berhad, it will increase your likeliness to secure a loan. The most important point here is that you must be able to prove that you have a steady source of income to pay your installment. If you can prove that it won't be a problem to get a loan. However, it is still subjects to banks' discretion.

Please let us know if you do need help on this. Have a great day.



This post has been edited by home_save: Dec 19 2010, 11:32 PM

Dear Cybermaster,

I had received a phone call from your friend this evening. As there is not much information about the unit, I will have a check on its value tomorrow as the gap of value for this particular apartment is quite big and provide an estimation of the loan amount which available to him.

Meanwhile, I will engage him and have his profile as this will influence the rate given by the banks.

Thanks and enjoy your Merdeka Night.

---

Added on August 31, 2010, 11:48 pmDude, is this 1 Jun 2009 post?

I think BSN latest offer should be over here




This post has been edited by home_save: Dec 19 2010, 11:32 PM

Dear y2kfirewalker,

For ZMC, there are 2 plausible scenarios:

1. It might be totally born by bank, however, with a relative poorer rate (for example, non-ZMC is at BLR-2.2 while ZMC at BLR-2.15)
2. The legal is financed into the package and you pay them indirectly through installment (hidden)

To be frank, banks won't simply be worse off without gaining something.

Please let me know if you do need help in getting a homeloan. Thanks.


This post has been edited by home_save: Dec 19 2010, 11:32 PM

Dear Dedade,

It should be more precise to say that each valuers of banks MIGHT provide different valuation for a unit. It is crucial to note that you must provide all the important details to bankers or consultants when you intend to buy a house which has a comparative higher price than its neighbors. Renovation details, costs, furnishing will heavily boost a unit price. Consider that you provided full set of details to Banker A while ntg for Banker B, definitely, Banker A will come back to you with a higher value while the latter will be poorer as the valuation will be done with assumption that it is a standard unit (bare unit, totally kosong with ntg)

Normally, there will be only a gap of 10~20k difference among the results yield by valuers. If more than that, there might be either (1) an inconsistent of information that you provided to different banks or, (2) simply, the bankers do not tell much about valued added features of your property to the valuers, or, (3) the valuers do not take into account of renovation details.

Hope it clarify your doubt. Thanks.



This post has been edited by home_save: Dec 19 2010, 11:33 PM

Dear Cybermaster,

I have a check on your inquiry, however, there isn't much historical background for this particular condo. Based on my preliminary checking, Pelangi Indah seemed to have a good price but with a comparative poor rent. Rent to price ratio is indeed a bit low. For your information, there are certain properties which either had been abandoned by the developers and being rehabilitated by the other developers, or, the initial developer had been bought over by others and resulted there is multiple change of ownerships. For these 2 kinds of scenario, banks will be very reluctant to finance such properties as (1) the conditions of the completed properties might not be the same condition as specified earlier, and (2) to encourage the buyers to buy from reputable developers instead of the formers that I mentioned previously.

It is not advisable to purchase the properties which are difficult to obtain financing from the banks as there must be a reason behind this, in which the properties can be (1) very unlikely to appreciate, (2) conditions and fitness of properties are uncertain, (3) very hard to be sold (new buyers face difficulty in obtain financing, thus, reduce the demand for the properties, eventually, lower value).

Kindly advice your friend to opt a better option. If he were willing to take up the risk (or simply, he just love the unit), kindly let us know and we can try to help out and obtain financing for him, however, we are unable to guarantee the best rate for him. Thanks.


Regards,

Timothy Ooi
Senior Negotiation Cadre
Home Save Real Estate Consultancy


This post has been edited by home_save: Dec 19 2010, 11:33 PM

Reply removed.

This post has been edited by home_save: Dec 19 2010, 11:34 PM

Information had been moved to [Home Save Consultancy] Loan Application Support, Loan application support & FAQs

This post has been edited by home_save: Dec 19 2010, 11:35 PM

Dear Jessyln,

(i) Features of the home loan are fully determined by the terms and conditions implied within the agreement as the name of the packages will not tell the full story of the package due to the facts that the clauses might be changed or augmented based on customers' profile and requirement. Clauses stated in black and white means everything rather than the verbally delivered information. In certain scenarios, we encounter some cases in which the clauses stated in the Letter of Offer / Agreement is not in tie with what we had been told by the bankers. Applicants are advised to read through the whole documents and seek for clarification prior signing the docs.

Due to limited the info provided, I make some assumptions based on my personal experience in helping you to understand the clauses:

(i) I believe the setup fee of rm200 and the monthly maintenance fee are for the current account that being set up for the flexi loan (as you mentioned about it, I suppose you are trying to have a full flexi loan). Most of the time, these kind of charges will incurred.

(ii) The idea of full flexi loan is to have 2 different accounts interlock with each other: the loan account (LA) and the current account (CA), whereby the balance in CA will offset the interest which incurred by the corresponding principle amount in the LA. The main feature over here is that it removed the need of prepayment into loan account and avoid any inconvenience of redrawing from the loan account like a traditional loan package. Owning a flexi package might still have the features of traditional loan package. Kindly take note that redrawing is a term which only applied to the withdrawal of prepaid sum in loan account instead of current account. And, I believe this clause is specifically for the case of prepayment into loan account, and it is not applicable to the amount that you deposited into the CA. For HLB, std clause for redrawing is that you must withdraw at least RM5000 per time (multiples of RM1000, mean you must either withdraw RM5000, RM6000, RM7000, so forth) with charge of RM50.

Applicants are advised to seek for through clarification and explanation from their respective bankers. Please don't sign any agreements if you find out that you are not comfortable with any clauses within or the bankers are unable to clear your doubt. Bear in mind, you won't have any change to cry for changes after you sign it. Kindly let us know if you do need help on this issue. Thanks.




This post has been edited by home_save: Dec 19 2010, 11:35 PM

Dear Jesslynn,

Based on the information provided by you, both of the clauses are tied to your package. These are common provisions for flexi packages with variation in redrawing restrictions which are subjected to banks' discretion. For the flexi package's CA, withdrawal & balance maintenance restrictions follow standard CA's provision instead of loan package's provision. You would need to check with the bank officer (instead of the bankers, if you are not confident with them) regarding those restrictions and charges associated with the CA that being set up against your loan account. Normally, there won't be a withdrawing limit on it. For the sake of understanding, I would suggest you to dial to their customer service, +603-76268899, to check out the difference between the CA that mentioned in the offer letter and a std CA in HLB. The more you know, the better position you are. However, you need to be patient with HLB staff as they are notorious in poor services.

Have a good day.



This post has been edited by home_save: Dec 19 2010, 11:36 PM

Dear giggs_509,

It depends how you want to manage your property. Paying additional RM700 will eventually shorten your tenure. Assuming you borrowed RM378k, tenure 30 yrs and an upward adjustment of BLR by 0.1% annually (assume you have a flexi loan), it will give us a monthly installment of RM1804.63. If you pay RM700 extra on a monthly basis, you should have fully settle your loan by the end of 25th year with an interest savings of 124k.

If you consider to treat your house as a residential property and you stay in it. It is advisable to pay more if you can afford it (provided that you have free money which you have no idea on what to do with it). For ordinary owners, we would suggest to use a simple "rule of trade-off". Consider current BLR at 6.3% with your package termed at BLR - 2.3% (=4%), if you do not have any investment option that can yield > 4%, then you can dump your money into the loan account as an option for interest savings, however, if you do, it will be vice versa.

In the end, it is still personal preference as some of us might prefer to spend that RM700 to have a great meal every weekend. You can download the attached mortgage calculator which developed by our team which serves the calculative need of quick loan settlement. Just an add-on, if you do plan to pay more initially, MLTA might serve your need as it can be structured to become a protection with investment feature (generate >4%) whereby its generated cash value will show a much significant interest savings than simple dump-in in the future.

Have a good day and spend your money wisely.




This post has been edited by home_save: Dec 19 2010, 11:36 PM

Reply had been moved to Article 2. Understanding the terminology of "Settlement", "Prepayment" & "Partial Prepayment" - Implication on your prepaid fund

This post has been edited by home_save: Dec 20 2010, 12:11 AM

Dear Michael,

For strategic arrangement of your properties (consider you won't sell any of them), it would advisable to take a bank loan now and keep the gov loan as a last resort option. It is especially true when the time goes bad and you have encounter a long-wait investment opportunity. Based on historical BLR fluctuation, BLR is somehow delayed as compare to economic performance. When the time is good, BLR will keep on increasing while when things go wrong, BLR will be remained high for a while and readjusted to a lower rate to stimulate the economic growth. It is obvious that during a good time, packages will be offered at BLR - X% while BLR + X% for vice versa.

Consider if you take a loan now and your package will be BLR - X%, in regardless of what is the trend of BLR in the future. Think positively, the rate that you are serving will be less than BLR and you reserve an option of gov loan to seize the investment opportunity during the bad time (avoid getting a package when BLR + X% and avoid the need of refinancing the package into BLR - X% in the future). However, kindly take this advice from a pure investors' perspective. If you just plan to buy a home and that's all, going for gov loan will make much more sense.

I believe the facility that you able talking about is flexi loan. There is a trade-off between the rate and convenience of facility. For the features of "offsetting interest with the balance in CA", you will need to sacrifice your request for a lower rate. OCBC can offer a rate of BLR -2.3% with conventional loan while HSBC might make it to BLR - 2.4%. However, rate and type of facilities granted are subjected to banks' discretions. It is advisable to think twice whether you would need this kind of facility by giving up a lower rate.

Based on your property selling price with mof at 90%, loan doc legal fee will be very like to be around 4.1k with stamp duty 1.8k, S&P legal fee will be solely determined by the panel legal firm of developer. You would need to talk to them on this. Highest MRTA which payable to protect your loan is estimated to be 8k+, subjected to institutions.

Regarding your tenure, the common rule will be :

Max tenure = 65 - current age

and round up to the lower ten. Does longer tenure mean anything thing? Let us consider the major advantages and disadvantages of having a longer tenure:

PRO:
(i) lower monthly installment. Installment differentials between having a longer tenure or shorter will be even obvious when your loan size grows significantly big.
(ii) improve successfulness of your loan application. Certain banks will take into your "Monthly commitment - Gross Income" ratio when approving your loan. Lower your monthly installment will lower the ratio and thus, increase your possibility in getting a loan. Applicable to those who with high commitment.
(iii) Cash flow. I don't think I need to explain on it right?

CON:
(i) increase of interest payable. Consider you get a loan of 400k. Tenure=30 yrs, Interest paid=359k; Tenure=40yrs, Interest paid=557k. Increase of 10 yrs tenure will lead to an increase of interest payable of 200k. Does it sound interesting to you?

Wow, a long answer. Thanks for taking your time to go through this. Please let us know if you do need any help on this as we would please to help out. Have a good night and nice dream.



This post has been edited by home_save: Dec 19 2010, 11:46 PM

Post had been moved to Article 2W. AIA & ING – The No Lock Penalty - How does it differ from banks?

This post has been edited by home_save: Dec 20 2010, 12:03 AM

Hi Michael,

No problem, Michael. You are correct. Let me share a common method that used by many property tycoons in building up their property empire. Profit capturing by selling their properties at a higher price during a good time and buying at a low price during a bad time is not their preference. Normally, what they did is to go for property which has strong appreciation fundamentals. And, they bought it, rent it out at Rental > monthly installment. Overtime, the loan is going to be paid off by the tenants and the Open market value of the property is going to rise (OMV). With OMV > initial purchase price, refinancing will make much sense as this will provide them with cash to purchase 2nd property (provide that it will be refinanced at Rental>Monthly installment). When the momentum built up, the appreciation of initial properties will fund the purchase of new properties while rental > monthly installment will soon be significant enough and make up a big portion of passive income. Certain of our clients practice this method for decades and now, their jobs are "landlords".

Certain points which are publicly concerned are not part of their concerns at all, for instance:
(i) Ppl always concern about the tenure and interest payable. For them, as long as the unit is popular and they can rent the properties out at Rental > Monthly installment, they won't concern too much on the tenure and interest payable as in the end, tenants bear their cost of ownership and they still own the properties and get passive income.

(ii) Liability > Asset. One of the interesting points that people asked is that, if the method of refinancing keep on repeating, this kind of landlords will eternally having liability > asset, does it sound crazy? Their answer is "So what?!" Imagine that you can rent out all your unit with Rental > monthly installment, and all the properties are insured against death. You will have infinite potential in building a great property empire by leveraging the money borrowed by the banks. If someone is willing to borrow you with the money to earn money, why don't you use it?

There are many interesting points to be highlighted in making yourself to be a property tycoon. Lower rate does not necessary serve your purpose while only the correct package will make your life easier and profitable to own a property. If you need assistance on this, we would be please to help out.

Appreciate support from LYN.



This post has been edited by home_save: Dec 20 2010, 12:01 AM

Post had been moved to Article 2W. AIA & ING – The No Lock Penalty - How does it differ from banks?

This post has been edited by home_save: Dec 20 2010, 12:04 AM

Post had been 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, 12:10 AM


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Dear Jesslynn,

As per update of 21 Sep 2010, industry is quoting their flexi-rate packages with these particular tiers:

(i) <100k, >/= BLR - 1.9%
(ii) >100k, <300k, BLR - 2% ~ BLR - 2.2%
(iii) >300k, <1M, BLT -2.3%
(iv) >1M, BLR -2.4%

These are the rate which applicable to whole industry, with provision of lock-in period (either full draw down/1st draw down) or other restrictions applied (ie. MRTA compulsory). If you intend to appeal for the waiver of restrictions, it will demote you to a less attractive tier. For instance, (ii) and (iii) are normally subjected to 3~5 years lock-in period (full / 1st draw down), if you want appeal for these waivers, rate of (i) will be applied to you.

Hope it helps.



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