Customer’s Email
Hello,
Hope You’Re Doing Great.
I’M Trying To Get The Information On How To Purchase My First House. I’M Trying To Find An Apartment Or Condo That Have At Least 4R2B Surrounding Kuala Lumpur Or Klang Valley, Selangor.
The Main Problem That I Have Is I Have Zero Knowledge In Regards Of Purchasing A House. If You Ask Me, I Can’T Really Tell How Much That I’Ll Be Able To Spend On Home Loan Payment As Well.
I Really Want To Buy A House Now, As Next Year I’Ll Be Marry And I Want To Have My Own House Before That But I Really Can’T Tell Either I’M Eligible Or Not.
Currently, I’M Only Searching For House But I Heard That Bank Will Only Lend 90% While Another 10% + Lawyer Fee And Other Stuff Need To Be Pay By Myself. Meanwhile Other Person Tell Me Other Story, There’S Bank That Will Give 100% Loan For First House. Things Are Very Confusing For Me Right Now.. Every Year, The Market Price For House Is Increasing And I’M Afraid If I Don’T Own A House Now, I Can’T Afford To Own One On Future.
Will You Able To Advise Me On What Should I Do Please.
Hope To Hear From You Soon.
Thanks And Regards,
Nurul
Answer :
Hi Nurul, thank you for visiting our website www.malaysiahousingloan.com and you did highlighted a pretty good question here.
Firstly, you must understand that 100% financing provided by bank is quite difficult to get. There are so many criteria. If you fall out one of the criteria, immediately the bank will slash your margin. One of the crucial criteria is DSR must be less than 50%. In your case here is 92%, which is high for 100% or even 90% financing.
If in a way you manage to get 100% approval. Please bear in mind you have to prepare for the following cost, SPA lawyer fees which is about 3-4% of your purchase price and Lawyer fees for loan which about 2-3% of your loan amount.
In addition, you might need to prepare the 10% deposit as upfront deposit. Based on normal rules, you must provide 10% deposit to seller upon signing SPA unless seller agreed to wait for the bank to disburse. If not, you have to pay first, then bank will reimburse to you later.
For example, SPA RM400,000
SPA lawyer fees 3-4%, I used the maximum 4%, the amount is about rm400,000 x 4% = RM16,000
Loan agreement lawyer fees, I used maximum 3%, the amount is about RM400,000 x 3% = RM12,000
In addition, 10% deposit of the property price is RM40,000 ( if you get 100% financing, bank will reimburse to you, but upfront you might need to pay the seller first)
Total amount you must have upfront is RM68,000.
For 100% financing criteria, you can click here to check out your eligibility. https://malaysiahousingloan.com/need-know-first-home-scheme/
Secondly, for the normal approval or 90% approval. You have to prepare the following fees:
1. SPA lawyer fees which is about 3-4% of your purchase price
2. 10% deposit of purchase price
3.Lawyer fees for loan which about 2-3% of your loan amount, this amount can be finance with the loan.
Basically, item no. 3 can be finance with the loan, so you only need to prepare for item 1 & 2.
For example, SPA RM400,000
1.SPA lawyer fees 3-4%, I used the maximum 4%, the amount is about rm400,000 x 4% = RM16,000
2.10% deposit of the property price is RM40,000 ( if you get 100% financing, bank will reimburse to you, but upfront you might need to pay the seller first)
Total amount you must have is RM56,000
My main concern on your case is your DSR which is 92%, this is quite high.
You might need to bring down to 50% below DSR if you want to apply for 100% financing and 70% below DSR if you want to apply for 90% financing.
Hope this help answer your questions.
Thanks.
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