Question of the day.
Hi, I am earning rm2800 minus my bonus and commissions. I am looking to get a house in kl. I would be a first-time buyer. Can I get more info on that? Thank you
Hi, thanks for your question and I will straight answer your question.
1. Calculate You Loan Entitlement
First of all, we need to know your loan entitlement. So, I’m going to assume your net income is RM2800, and you have at least one commitment, maybe a credit card.
Let said, your credit card outstanding is RM2000. So, the minimum amount you need to pay is RM2000 x 5% = RM100.
Alright. Net income RM2800. Commitment RM100.
Note: The bank will consider commission and bonus if you can prove the consistency of receiving such income for months and years. If they accept, your loan entitlement can be higher.
How much loan can you take?
To calculate, we need to know your maximum Debt Service Ratio (DSR).
RM2800 x 60% (max DSR) = RM1680.
Note: The range of bank DSR is from 60% to 85%, depending on the borrower’s net income. For the sake of calculation, we’re using the average DSR of 60%.
Now, the maximum commitments allowable to have is RM1680. And you have one existing obligation of RM100, minus that your balance is RM1580.
Therefore, your new home loan installment cannot exceed RM1580.
So, the next step I’m using a financial calculator app, where you key in the installment amount, maximum tenure 35 years, interest rates of 3.30%, and Boom! Your maximum loan amount entitlement is RM393,000.
Now, you know the maximum loan you can go to is RM393,000. And to know the house price, Follow this formula.
Maximum entitle loan / 90% margin = Purchase Price
RM393,000/ 90% = RM436,000
So, it would be best if you are aiming at a house price of below RM436,000.
The above calculation is not final. And you’ll still subject to bank’s approval, and there are still many aspects to look at for a bank to approve your loan. Therefore, it is best to consult us before proceeding with any house booking.
2. Take Advantage Of The Goodies
All these goodies are only for First-time house buyers.
a. Stamp Duty Exemption 2020.
Stamp Duty Exemption 2020 is an exemption or rebate given by the Malaysian Government to a first-time homebuyer.
The Stamp duty exemption 2020 is given to first time home buyers that purchasing a property worth RM500,000 and below.
The stamp duty exemption is for the first RM300,000 property value stamp duty on the instrument of transfer. That will be up to a maximum stamp duty exemption of RM5000.
The stamp duty exemption is extended to the stamp duty on loan agreement too.
For stamp duty on the loan agreement instrument, it is also for the first RM300,000 loan amount. That will come to a maximum stamp duty exemption of RM1500.
Therefore, the stamp duty exemption is up to RM6500 to grab.
You can read the full article here: https://malaysiahousingloan.com/exemption-for-stamp-duty/
b. Home Ownership Campaign
The Home Ownership Campaign (HOC) is a government initiative designed to support homebuyers looking to purchase property while also spurring the sale of unsold properties by developers in Malaysia’s housing market.
The brief criteria for Home Ownership Campaign (HOC) are as follows.
a. Period: 1 June 2020 – 31 May 2021
b. For Property Price: RM300,001 – RM2.5mio
c. Stamp duty exemption on Instrument of Transfer for the first RM1 million.
d. Stamp duty exemption on the Instrument of Securing loan up to RM2.50 mil.
e. With a minimum 10% discount from the developer.
We hope this is helpful.
If you need any further assistance from buying a house, getting a bank loan, or engaging an experienced lawyer, you can reach us here or call us on 012-6946746 and talk to Mr. David.