We have received numerous emails and questions from customer who want to get the best home loan in town.

But, the question is Do you know what consist of the best home loan?

Most customers will answer the lowest interest rates… Is this the answer for you too?

Ok, I know interest rates are important. There always other things which more important than interest rates…which is Loan Approval. Let me explain why.

ABC Bank may offer the best deal in town. Let said, they are offering BLR-2.50%. And of course as a customer, you would definitely want to grab the offer. So, you applied. 2 weeks later, they said. “Sorry sir, your loan had been declined by our management for whatsoever reason.”

2 weeks passed, if you are buying from agent or owner. You get caught in the situation because you have 14 days to sign the SPA and yet to get the bank loan approval.

Now you have to re-apply for 2^{nd or} 3rd best banks which may offer BLR-2.30% or 2.40%. Sad part… it will take another 1-2 weeks for approval.

We always highlight to our customer Interest Rates is important but is not as important as Loan approval. You must have loan approval first before negotiate for better rates. This is truly to safe guard yourself.

Housing loan is a long term commitment, it’s take 10, 20 , 30 or even 40 years to finish servicing the instalment. So, it is important to choose the most suitable housing loan, you must know which housing loan product works best for you.

Sometimes, when bank offering a good rates, you have to look at other terms and conditions in the letter offer. So, what to watch out in the letter offer? We are only able to shares some general information. You need to look at the interest rates, penalty period, penalty fees, late payment, the product feature, hidden charges, processing fees, any top up on the lawyer fees and so on…

One great Salesman told me this, “ KFC will never said McDonald serve the best burger, so do McDonald will never said KFC serve the best and delicious Fried Chicken in town. They only focus on their product. What they have, they served you. They will never mention things they don’t sell or compliment their competitor.”

Same goes to the banks, the banks will only sell their product. They will never mention about others.

We are the one need to be Smart consumer and choose the best deal out of the offer given.

If you need further information or have enquiries on housing loan, please go to contact us today.

We will try to help you.

 

Today, I received a call from a client of mine. The story is like this.

Earlier, he was trying to buy a Double Storey in Puchong for about RM450,000. Due to, his history in credit payment, he was afraid to put a booking beforehand. So, he tried to apply with 1-2 banks for the loan. And the loan was approved.

So, when he tried to put a booking then. The owner had increase the price to RM480,000. Surprisingly, there is another buyer for this price. And he was very upset about this but there isn’t anything he can do about it.

So, now he is trying to buy another property. Is a town house villa in Puchong. The price given by the agent is RM280,000 for upper unit. The townhouse is a brand new one. So, I try to view internet for this particular property and so many advertisement on the net stated the price is ranging RM220k to RM260k . For RM280k will be way more expensive.

I called him back and try to highlight this to him. He said, he did notice about this. But, when he called the agents, (controls by a group of same agent) all of them are quoting this RM280k range. According to the agents, the property had gone up since they advertise. So, I was wondering this is really crazy sales! Properties are still selling at HOT Cakes!

The property are selling much higher than the internet price. Last trend was when we saw any price in internet, normally the price had been increased by the agent, and normally the bank valuation will be lower than the agent price because agents tend to increase the price.

My advice to all new property buyers please be careful when purchasing a house. If the bank valuation is lower than the price you purchase, you have to top up the different.

Please check out our simple example here:

Example 1:

Property Price : RM300,000

Bank’s valuation : RM250,000

Loan can apply : RM250,000 x 90% = RM225,000

Deposit need to pay to owner RM300,000-RM225,000 = RM75,000

In actual you only need to paid RM30k ( 10% of SPA) but due to bank valuation is lower, customer have to Top Up RM45k.

 

Example 2:

Property Price : RM300,000

Bank’s valuation : RM310,000

Loan can apply : RM300,000 x 90% = RM270,000

Deposit need to pay to owner RM30,000.

No top up required.

If this happen to you, this is good. Its show you are buying a cheaper property. By signing SPA you already gain gross profit RM10,000.

 

 

Example 3:

Property Price : RM300,000

Bank’s valuation : RM300,000

Loan can apply : RM300,000 x 90% = RM270,000

Deposit need to pay to owner RM30,000.

No top up required.

This is normal. You are not gaining or losing money.

 

If you yet to buy any property, I think now is a good time to buy before everything become more difficult and expensive.

For more information about housing loan, Please Contact Us Today!

I’ve been reading many publicity and news about My 1st Home Scheme. Although, when the news first broke down by our Prime Minister, everyone welcome such a scheme with an open heart. Even though, government have a good intention to help people, but the Scheme has many weaknesses and flaws.

After one year of implementation and execution, you can see the number of applications and approvals are very frustrating.

As announced by Bank Negara (BNM), the latest figures on the progress of the scheme, as at of end-January, revealed as follows:

Total People had Applied for the Scheme : 1624
Less : Withdrawn due to multiple application to various financial institution : 562
Therefore, Actual application: 1062
Approved Application: 382 (36.60%)
Rejected Application: 505 (47.50%)
Remaining Application, still being processed: 168 (15.80%)

You have to remember, the above number are for whole Malaysia. Approved application stand only 382 among the multiple banks. I believe the numbers quite low.

Don’t forget more people are being rejected upfront by the banks before submitting for the application because of the strict terms and conditions imposed. These numbers are not recorded. If it’s does, you can see a huge number.

So, let me highlight again the main terms and conditions that are very strict among the banks.

1) GROSS INCOME.
To apply for this housing loan, your GROSS INCOME must be lower than RM3000. If your income is slightly higher, then just forget about it. Bank’s must follow the guidelines given by Cagamas and Bank Negara.

2) DEBT SERVICE RATIO
Debt Service Ratio under this Scheme must be 1/3 of your income or 50% must support with saving.
Basically, if you are earning Gross income RM3000 per month and yet to deduct others deduction, It is difficult to comply with these terms.

Let me show you:
Gross Income RM3000
- EPF RM330
- Socso RM5.00
- Income Tax RM51
Net Income RM2614.00

For RM220,000 for 30 years, instalment per month estimate RM1154.00

With the above Net income, the Debt Service Ratio is 44%. Which exceeded 1/3 but still within 50%. But, for Debt Service Ratio exceeded 1/3 must support with saving. This will be subject to bank’s approval.

For above assumption, we yet to add any car loan, personal loan or credit cards, even without any commitment the Debt Service Ratio is still unrealistic.

Nowadays, if you do not have any commitments or facilities with the banks, the chances are high for the banks to turn down your application. The reason behind this is the bank would like to track customer payment characteristics.

So, for the above case, you only allow to apply for credit cards and make sure your credit cards fully paid up monthly.

For many of us, we are not fall under this “PERFECT” category.

3) NEED TO PAY MORE UPFRONT
Yes, it’s true. We have to accumulate our saving to pay from our own pocket first. This scheme definitely not for people who do not have saving. If you do not have cash to pay the 10% deposit, then this is not the scheme for you.

I understand what you think when this scheme launch. Everyone thought,” This is Good News! I do not need to come up with any cash.” But, you are “ BIG WRONG”

Let me explain…

Firstly, if you are among the lucky one who get approval under this scheme. You still have to prepare with this. My example only on RM220,000 property. I do not want to go further to RM400,000 property, the amount will be more.

Property Price : RM220,000
Loan Amount Approved : RM220,000

Sales and Purchase Agreement (estimate) : Lawyer fees & other fees is about 3-4% of Purchase Price , RM6600.00
• Regardless, any scheme, you have to pay for your SPA lawyer fees.

Loan Agreement (Estimate) : Lawyer fees & other fees is about 2-3% of Loan Amt : RM4400.00
• Under 1st Home Scheme, you are not able to finance this amount to your loan. Normal loan are allow.

10% deposit : RM22,000.00
• Most of the owner/developer, not agree to wait for such a long time for the 10% to be pay. Therefore, if owner disagree, you have to pay owner first. Few months later the bank will reimburse the amount to you. If the Owner/developer agree, then is beneficial for you.

Add up all the cash, the total amount you have to prepare will be RM33,000.00

So, if young people who do not have saving or help from other families member, then it is a tough situation.
We receive many emails a day and I would said 90% are not qualify for the scheme.

I really hope government will heard us and make amendment on the terms and conditions to fits the current criteria and work hand in hand with the banks.

We do need to help our younger generation to own a house.

The most important, we are not here to judge but hoping the related parties will hear us.

For purchaser under 1st time home scheme who required 100% loan financing, BEFORE YOU PURCHASE ANY HOUSE, YOU ARE ADVISABLE TO MAKE SURE your eligibility by referring to the below criteria as per below links :

http://malaysiahousingloan.net/2011/03/09/my-first-home-scheme-criteria-in-details/

http://malaysiahousingloan.net/2011/05/17/my-first-home-scheme-faq/

For more information, Please go to Contact Us Today!

Easy Strategies For A Much Better Financial Existence Today!

Because of the current condition from the economy, personal finance ought to be extremely important for everyone. You don’t have to be wealthy to take a position and no matter your internet worth, being careful of the money ought to be vital that you. The guidelines in the following paragraphs will help you participate in your individual finance and get the best choices possible.

If your are thinking about adding to their finances searching at online want advertisements might help one look for a buyer searching for something they’d. This is often rewarding by looking into making one consider the things they own and could be prepared to spend for the best cost. It’s possible to sell products easily when they hire a company who desires it already.

Attempt to staying away from making use of your charge card unless of course it’s essential. For more compact purchases, go the money route. New legislation enables stores to want a charge card the least $10 for transactions. Make certain to hold cash or debit cards if you plan to create under $10 in purchases.

Keep good records of the expenses. Discover keeping accurate records, it’s doubtful that you’re declaring whatever you are permitted at tax season. Additionally, it makes your circumstances very hard if the audit should happen. An electronic or paper file can function all right, so focus on creating the machine which works for you.

Going for a job in a store that carries many factor which are of great interest to you may be an excellent decision. You won’t just earn a salary for working at this store, and can also get an worker discount you can use to save cash on things bought there, supplying two good things about your individual finances.

Write down free financial services every time they are pointed out. Banks frequently tell their clients about free websites they provide at most inopportune occasions. The smart customer doesn’t let these possibilities be a waste. If your teller provides the customer free financial planning services when they’re inside a hurry, for instance, the client can write down the sale and return to make the most of it in a better time.

Baby sitting could be a way to generate money that enables you to definitely remain in an appropriate atmosphere the entire time. You’ll want a great image for individuals to trust you using their home and most importantly, their kids. However, should you perform a good job, you will get suggested to others and additional your individual finances.

Make certain to adequately look around for better financing. When confronted with loan officials send them an email questions and concerns and check out and obtain because their reactions on paper as possible as loan officials frequently change relation to finance deals constantly to enable you to get to pay for a lot more than you need to.

Refinance

If you want to refinance a home loan, don’t totally reset the calendar. Should you have had planned to repay your mortgage in two decades, review your new options. You may have the ability to repay your mortgage a lot sooner than that. Most refinancing agencies base their financial loans around the original plans: take refinancing being an chance to locate a better strategy.

In case your mortgage is in danger, do something to refinance as quickly as possible. As the situation was once you could not restructure a mortgage before you had past due onto it, today you will find many actions you are able to take before reaching that time. This kind of financial triage is very valuable, and may minimize the discomfort of the mortgage crisis.

If you’re able to cut a minimum of one point, refinance your present mortgage. The refinancing pricing is considerable, but it will likely be worthwhile if you’re able to decrease your rate of interest by a minimum of one percent. Refinancing your house mortgage will lower the general appeal to you pay in your mortgage.

You will find a lot of items available on the planet of finance it is needed to gather together the understanding it requires to create the best choices for you personally. By using the advice out of this article, you are able to are hoping to make the very best utilization of your hard earned money, while making certain that you’re up to date in your personal finance possibilities.

Please contact us for more housing loan information.

Property Buying Tips For Any Buyer

Buying real estate can be a wise investment. There are many things, however, you need to consider before and during the buying process. Do not jump-in-over-your-head and regret your decision! This article can help you with some of the items that need to be considered. Read on.

When purchasing real estate, you must check out the type of plumbing, so you can be prepared for repairs down the road. A lot of the plastic pipes commonly used during the early 80′s, can get very brittle and fail after all those years of use. If this plumbing is still in the house, then you will be the one stuck with the repair bill.

Before buying a house in a new State, consider renting a house in the area first. By renting a house in the area you can get a feel of what it will be like to live in the area permanently. You can also discover whether there are suitable transport links, leisure facilities, shops, job opportunities, schools, etc.

Considering hiring an agent to guide you whether you are buying or selling. Going it alone when buying or selling a house is possible, but difficult. A good agent will help you find the right house or the right buyer. Agents will also handle the overwhelming paperwork that comes with real estate transactions.

One important tip when it comes to real estate, is to make sure that you keep a detailed journal of everything that you do throughout the process. This is important as either the buyer or the seller, because it will help to ensure that not only do you know how well you are accomplishing your goals, but will also be a good record in case you need proof, if an unforeseen circumstance arises.

Even should you be buying a home or commercial property, consider hiring a real estate appraiser to get an appraisal of the property. Appraisers are independent third parties who assess value and don’t make a commission off of the price; they will provide you with evidence for their valuation. If you buy the property, you will also need to know what the assessed value is, so why wait?

When you are buying a home to rent out, consider it’s location and potential renters when making renovation decisions. A low income house will not benefit from the expense of granite counters for example. Although a renter will be excited they are are there, they won’t be able to pay a premium for the property simply because you put them in.

Before starting the home acquiring procedure, safeguard yourself in opposition to disappointment by obtaining pre-qualified or pre-approved. Performing so will give you a practical idea of the monetary means – just how much you are able to feasibly borrow. This can make it straightforward for you to find out up front which qualities you should tour and which could be out of your price tag selection.

Housing Loan

When a lender is willing to give you a housing loan for a certain amount, it does not mean you need to purchase a house that takes up that full loan amount. Purchasing less than you are eligible for means that you can save more money in order to be prepared for later home or medical emergencies.

As was stated earlier, buying real estate can be a wise investment. Using good judgment when buying, this is no doubt a big investment. Avoid getting caught up in the moment! Use the information in this article to help you make the right choice.

Please contact us for more housing loan information.

Document Required For Loan Application:

Under Employment

1. NRIC copy

2. Property Booking Receipt

3. Vendor Sales and Purchase Agreement / Title copy / New Sales and Purchase Agreement

4. Latest 3 months pay slips (For Basic Salary) / Latest 6 months pay slips (For Basic + Commission Earner)

5. Latest 3 months personal bank statement (For Basic Salary) / Latest 6 months pay slips (For Basic + Commission Earner)-(To show salary credited as per pay slip)

6. Latest EA form / Employment Letter

7. Latest KWSP statement

8. Income Tax-Latest Form B / BE with payment receipt acknowledgement

9. Name Card

10. Diploma / Degree Certificate (For longer repayment period)

11. Deposit Statement e.g. Fixed Deposit, ASB or Bonds (To show saving habit)

12. Latest Housing Loan statement from the current bank.

13. Previous bank Letter of offer

14. Quite Rent or Assessment for the refinance property

 

Under Self-Employed

1. NRIC copy

2. Property Booking Receipt

3. Vendor Sales and Purchase Agreement / Title copy / New Sales and Purchase Agreement

4. Name Card

5. Diploma / Degree Certificate (For longer repayment period)

6. Deposit Statement e.g. Fixed Deposit, ASB or Bonds (To show saving habit)

7. Latest Housing Loan statement from the current bank.

8. Previous bank Letter of offer

9. Quite Rent or Assessment for the refinance property

Please Choose Section A or B for your company. Documents are varied depending on Company Entity.

Section A : Sdn Bhd Company

a. Form 24 & 49

b. Latest Profit and Loss Account

c. Memorandum of Article

d. Company Profile

e. Latest 6 months company bank’s statement

f. Latest 3 months pay slips (As a Director)

g. Latest 3 months personal bank statement (to tally with payslips)

h. Latest EA form / Employment Letter (if any)

i. Latest KWSP statement (if any)

j. Income Tax-Latest Form B / BE with payment receipt acknowledgement

 

Section B : Sole Priprietor and Partnership

a. Form A & Form D

b. Latest Profit and Loss Account

c. Latest 6 months company bank’s statement

d. Income Tax-Latest Form B / BE with payment receipt acknowledgement

 

The documents may seem a lot, but we would encourage customer to prepare a full set in order to avoid any further documents requested or disturbance by the bankers.

Contact us now for more home loan information!

Up To BLR – 2.45%

New home loan promotion for limited period only!

Only applicable for housing loan above RM500,000 .

Subject to Terms and Conditions apply.

(Until 31th May 2012)

Contact Us Now For More Home Loan Promotion!

BLR-2.40%

(Until 31th May 2012)

For loan amount RM200,000 & above.

Terms and conditions apply.

For more home loan information, please contact us now !

Residential Home Loan Package

For Loan amount above RM200,000:

Up To BLR – 2.40% whole tenure

(Until 31th May 2012)

Subject to Terms and Conditions apply.

For more home loan information, please contact us now.

Up To BLR – 2.20% whole tenure

(Until 31th May 2012)

Hurry! Contact us now!

Terms and conditions apply!