I need to seek advice from all the pro here..

The senario is like this..

1. my property is a condo

2. my lockin period is 3 yrs from full drawdown

3. Those ppl that buy property in the last 3yrs have this new thing whereby bank will withhold the last 2.5% until developer apply for strata title sort of like protecting the buyer..

4. however, for a 250k property, 2.5% is just 5K++ and as usual, strata title for condo is always very very late..

5. my loan age is closing in to 4yrs.. and yet i'm still being lock. and dunno when i can get strata title.

So, this "protection" is actually screwing me with the inability to refinance to much lower rates unless i pay penalty for early termination.

Is there any way me as the borrower request the 2.5% to release? I spoken to the bank and they say they can't release unless developer request. I spoken to developer and they say can't be done. i wrote in to my bank for a reevaluation of my rates but got rejected.

Obviously i think something is wrong... either 1 of them is pulling my leg.. anything i can do ? i'm considering just pay the damn penalty and find a much much lower rates loan.

thanks.

I've checked for you, you don't have to worry about the 2.5% that is witheld as the new bank will take over everything from your current one.

The only issue is the penalty if you have not completed the 3 yrs from full drawdown. Currently the best refinance rate from our 8 panel banks is BLR - 2.4% which is approx 4.1% nett. It this is lower compared to your current loan it may be worthwhile looking into especially in the long run..even 2% less could mean RM100+k savings for a 250k loan.

thanks danny, which panel offering 2.4? i checked with pbb and another bank.. highest is 1.9 - 2.0 with ZMC. yes with all those blr - 2% these day the 7k penalty is actually nothing much..

so there is nothing actually i can do to force release the 2.5% if say i not going to refinance?

btw. i just spoken to the pbb agent in lowyat about this.. he said i need to personally settle the 2.5% with the developer before refinance... i wonder why can't the new bank take care everything...

This post has been edited by exshige: Nov 26 2008, 05:20 PM

The last few % is be release by bank to developer but withheld by stakeholder lawyer (who prepared your S&P) until certain conditions are met by developer (strata title is obtained, and something else I can't remember).
If bank haven't release the money, you won't get your keys at all.

some banks do take care of things like that. because when u refinance, the new bank will have to get those relevant docs from ur current bank, then the lawyer side will have to do their jobs and change charge, then will have to give notice to the developer so that when they wanna take money...etc etc etc...

IF, something goes wrong, it will cause delay of 1 month - 1 yr....

u can check which bank can handle this kind of situation then only u do the refinancing.



This post has been edited by abyss8: Nov 27 2008, 01:30 AM

Hi exshinge,

It depends on each individual case so what happens is your application will be forwarded to all 8 banks and within 3 days they have to come back to us (NYLife) with their offers. As each individual case is different from another, in some cases there may be more than 1 bank which offers the same rate, and some with higher legal fee, some lower, some nil so you have the advantage to select the best option. To us the client needs are the priority so we don't advocate whether Maybank is better, Hong Kong Bank or Citybank etc.

Instead of you going to all the banks and submitting 8 applications to find out the rates and fees as well as your question on the 2.5%, here you only submit once and all 8 banks replies within 3 days for you to select. The advantage of having 8 banks to compete for 1 customer is that you will definately receive the best offer available.

In most cases the new bank will take over the 2.5% and the only fee u have to pay is your penalty. If you wish to find out the exact details the only way is to submit your application which is f.o.c , and you will receive an answer within 3 days and make your decisions then. Do pm me if u want the details of application.

This post has been edited by DannyOP: Nov 27 2008, 04:58 AM

hi,

yes i have read my documents countless time and it did state that the 2.5% is suppose to be hold by a stakeholder lawyer. so regardless of developer getting it or not.. the bank should be 100% release. but i check my loan account since day 1 till today.. it still states

Loan Amount (RM) : 204,162.00
Released Amount (RM) : 197,920.40

My full repayment started 4 yrs ago and i moved in 3 yrs ago. i double confirm again with my bank and they say developer haven't request the money yet...

so the question is, why the stakeholder didn't ask for the money?

btw this only happen to buyer in the last 3 yrs.. many of my neighbour that bought the unit earlier than me dun have this 2.5% withheld.. while some that bought at a similar time like me all have this problem... but some lucky coz their contract is first drawdown.. so it doesn't affect them..

This post has been edited by exshige: Nov 27 2008, 11:13 AM

Hi exhinge,

The 2.5% will be taken over by the new bank. Also just been given an update, the lowest rate is now BLR - 2.5% at BLR 6.5% so effective rate is now 4% flat. I suggest that you put in your request first with the relavant documents, then decide later whether you wish to accept the offer or not when the banks reply.