<Read Part 1: Purchase>
So I decided to buy an apartment in Shah Alam for RM 170,000 (read here). Where do I get the money? I don't have RM 170,000 in my bank account (I still don't after working 4 years). I am forced to use 'other people's money'...the bank. All my life, I have never heard of BLR, DBR, CCRIS, lock in period, CTOS etc. These were all foreign to me. (I have mentioned a bit regarding CCRIS in my other blog; PTPTN and CCRIS).
I initially thought that ALL banks ONLY provide 90% financing margin ALL the time. But I was wrong. You can (I think not anymore) try and get 95% financing if you have a good credit history. Furthermore if you play around here and there (such as mark up loan) you can theoretically get 100% financing. And then there is the government loan where you can get 100% loan. But a financing margin (how much the bank loans you) of 90% only applies to the FIRST TWO houses you buy, subsequently it is 70% downwards.
But can any Abu, Ali and Ahmad (Tom, Dick and Harry) apply for a housing loan and get it approved? This is where CCRIS comes in; the Central Credit Reference Information System (details here). What is this abomination? Its a reference system a bank uses to screen through all applicants. The banks can know how much you owe other banks and whether you have been a good paymaster or not.
So I decided to buy an apartment in Shah Alam for RM 170,000 (read here). Where do I get the money? I don't have RM 170,000 in my bank account (I still don't after working 4 years). I am forced to use 'other people's money'...the bank. All my life, I have never heard of BLR, DBR, CCRIS, lock in period, CTOS etc. These were all foreign to me. (I have mentioned a bit regarding CCRIS in my other blog; PTPTN and CCRIS).
I initially thought that ALL banks ONLY provide 90% financing margin ALL the time. But I was wrong. You can (I think not anymore) try and get 95% financing if you have a good credit history. Furthermore if you play around here and there (such as mark up loan) you can theoretically get 100% financing. And then there is the government loan where you can get 100% loan. But a financing margin (how much the bank loans you) of 90% only applies to the FIRST TWO houses you buy, subsequently it is 70% downwards.
But can any Abu, Ali and Ahmad (Tom, Dick and Harry) apply for a housing loan and get it approved? This is where CCRIS comes in; the Central Credit Reference Information System (details here). What is this abomination? Its a reference system a bank uses to screen through all applicants. The banks can know how much you owe other banks and whether you have been a good paymaster or not.
 |
| CCRIS |
