My First Property Part 2: Loan

11:07 PM

<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.

CCRIS




This is how it looks like. It lists down all the loans that you have and the outstanding amount. The columns on the right indicate whether you have missed any payments or not. 0 means good, all other numbers would mean there is something wrong...you have been defaulting too much on your loans. Do remember that these outstanding loan are INCLUSIVE of your credit card debts. You can obtain a copy of your CCRIS at Bank Negara using their computers (like the ones at EPF). Do remember to bring along your MyKAD and a functional thumb for verification.

That's not all, you also need to have a good DBR; Debt - Burden Ratio. The last time I heard, you need a DBR of less than 70% to fulfill the criteria. DBR measures how much your total debt is to your net income. The higher it is, the more you are in danger of going bankrupt.

Example:

Net income: RM 3600 (minus EPF and tax etc.)

Car installment: RM 1000
Personal loan: RM 1000
Other loans: RM 500

DBR = (1000 + 1000 + 500) / 3600
         = 69%

I did not bother with all the above then. Fortunately, my credit history was clean.No problems with the banks at all...or so I thought! I wasn't really sure which bank to go for. Back then, I didn't have anything like iMoney's home loan calculator to compare my loan rates.

iMoney's Home Loan Calculator
Back then, BLR (base lending rate) was 6.6%. But since the middle of this year Bank Negara Malaysia announced an increased Overnight Policy Rate (OPR). Subsequently the BLR at 6.85%. You can read an article about it on iMoney. So, if the bank states that the interest rate is BLR - 2.4%, the effective interest rate is 6.85 - 2.4 = 4.45%. As for the other calculations, just let the banks handle them.

It is important though to remind yourself to NOT SIGN the Sales and Purchase Agreement (SPA) until you get an OFFER LETTER from the bank. A letter offer is a document stating that the bank has agreed in principal to finance your purchase at the agreed rate. It is up to you to sign the document at the stipulated time. If you sign the SPA first and NOT get a bank to finance your purchase, YOU ARE ON YOUR OWN. Cari la duit sendiri sampai botak kepala!

ANALYSIS

I didn't have trouble getting a loan because my credit history was clean. But let's summarize and analyze what I should have improved on.

1. Credit worthiness

If you don't think you can commit to the monthly payments or have a strong holding power, you are NOT READY yet. If there are too many calit in your CCRIS, focus on managing your finances first. DBR can be calculated by yourself. Do include the estimated monthly installments if you commit to the loan you are applying for.

2. Shop around for the best offer

You can try and apply for more than one bank and sign up for the offer with the best rates and also flexibility. A term loan is quite different from a flexi loan. Both has its pros and cons. A low interest rate may not be everything. You need to consider the other services offered as well. Another thing to consider is the lock in period. If you intend to sell it within 3 years, don't sign up for the one with a lock in period. If you decide to sell or refinance the loan, a penalty has to be paid.

3. Read the letter offer and other related documents

The loan agreement is REALLY THICK and there is tonnes to sign. Each page needs initials and it is really taxing on the wrist. Despite your urge to just sign and get things over with, do take extra effort to understand what all those fine prints are. I did NOT know there was a lock in period until time I wanted to sell the property...to late then!

4. Sign the Offer Letter BEFORE the SPA

Sabar....don't be too kalut. VERY IMPORTANT this part.

MOfrust

You Might Also Like

28 comments

  1. Wisconsin Mortgage Corporation has been providing quality home loans across Wisconsin.Meet our loan officers. Please choose the loan officer that you were referred to view their personal page and apply online.Wisconsin Best Interest Rates Each loan officer's page includes the following services.

    ReplyDelete
    Replies
    1. Affordable Loan Offer (ericloanfinance@hotmail.com) NEED A LOAN?Sometime i really wanna help those in a financial problems.i was wondering why some people talks about inability to get a loan from a bank/company. have you guys ever try Eric Benson lending service.it cost dollars to loan from their company. my aunty from USA,just got a home loan from Eric Benson Lending banking card service.and they gave her a loan of 8,000,000 USD. they give out loan from 100,000 USD - 100,000,000 USD. try it yourself and testimony. have a great day as you try.Kiss & Hug. Contact E-mail: ericloanfinance@hotmail.com

      Delete
  2. When i could not face my Debt any more, my son was on hospital bed for surgery that involve huge money and i also needed some money to refinance and get a good home then i have to seeks for Assistance from friends and when there was no hope any more i decide to go online to seek a loan and i find Kumaresan Kahlil Loan Investment Company (feiyenloan@gmail.com) with 2% interest Rate and applied immediately with my details as directed. Within seven Days of my application he wired my loan amount with No hidden charges and i could take care of my son medical bills, Renew my rent bill and pay off my debt. I will advice every loan seeker to contact Kumaresan Kahlil Loan Investment Company For easy and safe Transaction.

    ReplyDelete

  3. Do you need personal loan? Does your firm,company or industry need financial assistance? Do you need finance to start your business? Do you need finance to expand your business? We give out loan to interested individuals who are seeking loan with good faith. Are you seriously in need of an urgent loan contact us at Email: flourishloancredite@gmail.com
    APPLICATION DETAILS
    Your Full Details:
    Full Name:
    Loan Amount Need:
    Loan Duration:
    Phone Number:
    Applied before?
    State:
    Monthly Income:
    Country:
    You are to send this to our Company Email;flourishloancredite@gmail.com

    ReplyDelete
  4. Good day:
    Do you need an urgent loan to solve your financial needs, we offer
    ranging from $ 5,000.00 to $ 10,000,000.00 loan Max, we are reliable,
    efficient, fast and dynamic, with 100% Guaranteed We also gives u credit
    to the (euro, pounds and dollars.) The interest rate applicable to all
    payday loans (2%), if you are interested get back to us via
    ibrahimfunds6@gmail.com) with the information below:

    ReplyDelete
  5. Affordable Loan Offer (ericloanfinance@hotmail.com) NEED A LOAN?Sometime i really wanna help those in a financial problems.i was wondering why some people talks about inability to get a loan from a bank/company. have you guys ever try Eric Benson lending service.it cost dollars to loan from their company. my aunty from USA,just got a home loan from Eric Benson Lending banking card service.and they gave her a loan of 8,000,000 USD. they give out loan from 100,000 USD - 100,000,000 USD. try it yourself and testimony. have a great day as you try.Kiss & Hug. Contact E-mail: ericloanfinance@hotmail.com

    ReplyDelete
  6. Are you in need of quick an urgent loan with relatively low interest rate as low as 3%? We offer business loan, personal loan, home loan, auto loan,student loan, debt consolidation loan e.t.c. no matter your credit score. We are guaranteed in giving out financial services to our numerous clients all over world. With our flexible lending packages, loans can be processed and transferred to the borrower within the shortest time possible, contact our specialist for advice and finance planning. If you need a quick loan contact us via Email:maxcreditfinance@googlemail.com

    ReplyDelete
  7. Are you tired of seeking loans and Mortgages,have you been turned down constantly By your banks and other financial institutions,We offer any form of loan to individuals and corporate bodies at low interest rate.If you are interested in taking a loan,feel free to contact us today,we promise to offer you the best services ever.Just give us a try,because a trial will convince you.What are your Financial needs?Do you need a business loan?Do you need a personal loan?Do you want to buy a car?Do you want to refinance?Do you need a mortgage loan?Do you need a huge capital to start off your business proposal or expansion? Have you lost hope and you think there is no way out, and your financial burdens still persists? Contact us (gaincreditloan1@gmail.com)

    Your Name:...............
    Your Country:...............
    Your Occupation:...............
    Loan Amount Needed:...............
    Loan Duration...............
    Monthly Income:...............
    Your Telephone Number:.....................
    Business Plan/Use Of Your Loan:...............
    Contact Us At : gaincreditloan1@gmail.com
    Phone number :+44-75967-81743 (WhatsApp Only)

    ReplyDelete
  8. Private Lender Avit Investment Authority.

    Greetings to you by ADIA.

    We are a France-Paris based investment company known as Avit
    Development Investment Authority working on expanding its portfolio
    globally and financing projects.

    We would be happy to fund and invest with you in any profitable
    project if you have any viable project we can finance by making mutual
    investment with you. If you are interested, kindly contact us
    on:avitinvestmentauthority2@gmail.com for more details.

    Looking forward hearing from you soonest.

    Yours truly,
    Mrs Rose Williams
    (Personal Assistant)
    Avit Development Investment Authority(ADIA)
    501 Avenue Montaigne,75008 Paris-France
    Paris-France.Avit Development Investment Authority (ADIA)

    ReplyDelete
  9. We offer certified and verifiable bank instruments via Swift Transmission from a genuine provider capable
    of taking up time bound transactions.

    FOR LEASING OF BG/SBLC
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
    LEASING FEE = 4%+1%

    FOR PURCHASE OF FRESH CUT BG/SBLC
    PRICE = 32%+1%
    MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M

    Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly
    renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information.

    Contact: Name: WARREN GARY

    Email: inquiry.barkerfinancial@gmail.com

    Skype: inquiry.barkerfinancial@gmail.com

    ReplyDelete
  10. Are you in need of quick an urgent loan with relatively low interest rate as low as 3%? We offer business loan, personal loan, home loan, auto loan,student loan, debt consolidation loan e.t.c. no matter your credit score. We are guaranteed in giving out financial services to our numerous clients all over world. With our flexible lending packages, loans can be processed and transferred to the borrower within the shortest time possible, contact our specialist for advice and finance planning. If you need a quick loan contact us via Email:maxcreditfinance@googlemail.com

    ReplyDelete
  11. Private Lender Avit Investment Authority.
    Greetings to you by ADIA.

    We are a France-Paris based investment company known as Avit
    Development Investment Authority working on expanding its portfolio
    globally and financing projects.

    We would be happy to fund and invest with you in any profitable
    project if you have any viable project we can finance by making mutual
    investment with you. If you are interested, kindly contact us
    on:avitinvestmentauthority2@gmail.com for more details.
    Looking forward hearing from you soonest.
    Yours truly,
    Mrs Rose Williams
    (Personal Assistant)
    Avit Development Investment Authority(ADIA)
    501 Avenue Montaigne,75008 Paris-France
    Paris-France.Avit Development Investment Authority (ADIA)

    ReplyDelete
  12. I dont really know much about hacking after so many tries i met Cyberhacking lord who later help me find out my husband has been cheating on me and stealing from my bank account, he had this scheme going for 6 months. He gave me access to his mail,social media account,phone(could see deleted messages) and even track his location, still going to sue to him. Having doubts in your relationship? contact him (cyberhackinglord@gmail.com).

    ReplyDelete
  13. Do you need a financial help? Are you in any financial crisis or do you need funds to start up your own business? Do you need funds to settle your debt or pay off your bills or start a good business? Do you have a low credit score and you are finding it hard to obtain capital services from local banks and other financial institutes? Here is your chance to obtain a financial services from our company. We offer the following finance to individuals-
    *Commercial finance
    *Personal finance
    *Business finance
    *Construction finance
    *Business finance And many More:
    and many more at 3% interest rate;
    Contact Us Via Email:bullsindia182@gmail.com

    ReplyDelete
  14. I never ever believed in these blank ATM cards so i have always been reluctant to try purchase the blank ATM card online because i know for a fact there are fake hackers out there, but i was convinced that it really works when a very close friend at my place of work got the card & we confirmed it really works, without delay i gave it a go, so i contacted mitchbourne(@)cyberservices.com who helped my friend out, since then i have been able to do alot of personal jobs with him like, Whatsapp conversation, Facebook, Icloud, emails,He does all sort of hacks,He also doesn't request for money first until he has proven to you he is capable of the job and you will be satisfied before sending any cash to him, and the amazing part is he also works with Proofs. I'm glad for his help.

    ReplyDelete
  15. Do you need an urgent loan for business or to pay bills at 3% interest rate? We offer Personal Loan, Real Estate Loan, Business Loan and others to prospective individuals, companies, cooperate bodies as well as organizations. No matter your credits score ranging from $5000 dollars to $20,000,000.00 duration period of 1 to 30 years Please allow up to 12 hours after applying for a loan to be contacted Any interested person should contact us with the below information. Email Us: ibrahimfunds5@gmail.comTell: +919818473167 First Name:__________ Last Name:_________ Age:__________ Gender:__________ Address:____________ Country:_________ MARITAL STATUS:__________ OCCUPATION:__________ MONTHLY INCOME:__________ Mobil Number:__________ LOAN AMOUNT NEEDED:__________ Loan Amount Needed:__________ Loan Duration:__________ Purpose Of Loan:__________ Email Us: ibrahimfunds5@gmail.com Tell: +91981847316

    ReplyDelete
  16. Are you looking for a business loan, personal loans, mortgages, car
    loans, student loans, debt consolidation loans, unsecured loans, risk
    capital, etc. ... You are in the right place
    Your loan solutions! I am a private lender who lends
    Individuals and businesses at a low interest rate and affordable
    Interest rate of 3%. Contact us by email: powerfinance7@gmail.com

    LOAN APPLICATION FORM
    **********************
    Your full name:
    Country/State:
    Loan Amount:
    Duration
    Phone:
    Monthly income:
    Occupation:

    Awaiting your swift response.
    May Allah bless you.
    IBRAHIM MUSA
    power Financial Service Pvt.
    Contact Us At :powerfinance7@gmail.com
    WhatsApp Number +919717357946

    ReplyDelete
  17. We specialized in Bank Guarantee {BG}, Standby Letter of Credit {SBLC}, Medium Term Notes {MTN}, Confirmable Bank Draft {CBD} as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed.

    We deliver with time and precision as sethforth in the agreement. Our terms and Conditions are reasonable, below is our instrument description.

    The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee will be paid after the delivery of the MT760.

    Below is our instrument description.

    DESCRIPTION OF INSTRUMENT:
    1. Instrument: Bank Guarantee (BG/SBLC) (Appendix A)
    2. Total Face Value: Eur 5M MIN and Eur 10B MAX (Ten Billion USD).
    3. Issuing Bank: HSBC Bank London, Credit Suisse and Deutsche Bank Frankfurt.
    4. Age: One Year, One Month
    5. Leasing Price: 4% of Face Value plus 2% commission fees to brokers.
    6. Delivery: Bank to Bank swift.
    7. Payment: MT-103 or MT760
    8. Hard Copy: Bonded Courier within 7 banking days.

    All relevant business information will be provided upon request plus our terms and procedures: If you are interested please contact me for us to proceed further

    Regards

    Devdutt Vyas
    Email: devdutt_vyas@outlook.com
    devdutt.vyas2016@gmail.com
    Skype: devdutt.vyas

    ReplyDelete
  18. Contact Email:dougjoelcomm0001@gmail.com Do you know that you can hack any ATM machine !!! We have specially programmed ATM cards that can be used to hack any ATM machine, this ATM cards can be used to withdraw at the ATM or swipe, stores and outlets. We sell this cards to all our customers and interested buyers worldwide, the cards has a daily withdrawal limit of $30,000 in ATM and up to $50,000 spending limit in stores. and also if you in need of any other cyber hacking services, we are here for you at any time any day. Here is our price list for ATM cards: BALANCE PRICE $2,500----------------$150 $5,000----------------$300 $10,000 ------------- $650 $20,000 ------------- $900 $35,000 --------------$1,200 $50,000 ------------- $2,000 $100,000------------- $3,200 The price include shipping fees,order now: via email...dougjoelcomm0001@gmail.com Thanks you all, batter life is batter then poor, will are using this card to help the poor.

    ReplyDelete
  19. Instant Personal Loans – There are times when you might need money urgently at a very short notice but are running out of cash. You may wonder as to which lender might sanction a loan at such an occasion! Much to your surprise, you can avail instant personal loans immediately. They are processed very fast, say within 24 hours. You can use these loans for any personal need of yours. You also have the choice to apply for this loan online. Yes, within the comfort of your home, you can apply for this loan and save yourself of all the hassles which you might have to go through otherwise contact us now: email: housingfinance247@gmail.com

    LOAN APPLICATION FORM
    1) Full Name:
    2) Gender:
    3) Loan Amount Needed:.
    4) Loan Duration:
    5) Country:
    6) Home Address:
    7) Mobile Number:
    8)Monthly Income:
    9)Occupation:
    )Which did you here about us.

    Do you need an urgent loan at 3% APPLY: housingfinance247@gmail.com

    ReplyDelete
  20. Attention! Attention!! Attention!!!,

    What is your situation? *Need 100% financing
    *Debt Consolidation Loans *Business Loans *Personal Loans *Home Loans *Car Finance *Commercial Loans *Investments Loans *Debts Consolidation *Business Planning *Commercial Development Finance *Properties Mortgages *Bad credit loans *commercial loans *Start-up- working capital loans *Construction loans *Car loans, *Hotel loans*Student loans at the cheapest interest rate of %. For more details email
    us today via email:(bdsfn.com@gmail.com)
    Name :
    Country :
    Phone number :
    Amount Needed as Loan :
    Purpose of Loan :
    Have you applied for loan online before (yes or no)
    Email : bdsfn.com@gmail.com
    Emaill: anatiliatextileltd@gmail.com
    Mrs.Emilia Fedorcakova

    ReplyDelete
  21. I have spent a lot of the time in different blogs but this is really a unique blog for me. http://fastcashloansrater.com/same-day-loans/

    ReplyDelete
  22. Do you need Finance?
    Are you looking for Finance?
    Are you looking for finance to enlarge your business?
    We help individuals and companies to obtain finance for business
    expanding and to setup a new business ranging any amount. Get finance at affordable interest rate of 3%, Do you need this finance for business and to clear your bills? Then send us an email now for more information contact us now via Email: ibrahimfunds5@gmail.com

    ReplyDelete
  23. Are you looking for a business loan, personal loans, mortgages, car
    loans, student loans, debt consolidation loans, unsecured loans, risk
    capital, etc. ... You are in the right place
    Your loan solutions! I am a private lender who lends
    Individuals and businesses at a low interest rate and affordable
    Interest rate of 3%. Contact us by email: powerfinance7@gmail.com

    LOAN APPLICATION FORM
    **********************
    Your full name:
    Country/State:
    Loan Amount:
    Duration
    Phone:
    Monthly income:
    Occupation:

    Awaiting your swift response.
    May Allah bless you.
    IBRAHIM MUSA
    power Financial Service Pvt.
    Contact Us At :powerfinance7@gmail.com
    WhatsApp Number +919717357946

    ReplyDelete
  24. We offer personal loans up to $ 100,000, you are looking for a business loan and have been denied by a bank, we can help with loans of $ 5,000 to a maximum of $ 100,000 * that can help you get your business Rebuild and get you back Can bring you on a path to a better financial future.


    On time, you can apply in just a few minutes and get your money the same day.



    Do not delay! E-mail via {samsulalamcashfirm@gmail.com} or visit us at one of our sites to see how we can help.


    Thank you for contacting us,


    Best regards

    Mr.Samsul Alam

    Samsulalamcashfirm

    Samsulalamcashfirm@gmail.com

    ReplyDelete
  25. We are an organization set up to help people in need of
    assistance, such as financial aid. So, if you are going through financial
    problem, if you have a financial mess and you need funds to
    starting your own business or you need a loan to pay off debt or pay
    bills, start a nice business or you find it difficult
    obtain capital loan from local banks, contact us today via e - mail
    rebeccawilliamsloanfirm@gmail.com

    "So, do not let this opportunity pass you by,
    You are advised to complete and return the details below ..

    Your Name: ______________________
    Your Address: ____________________
    Your Country: ____________________
    Your task: __________________
    The amount of loan needed: ______________
    Term of the loan: ____________________
    Monthly Income: __________________
    Mobile Number: ________________
    Did you apply for a loan before: ________________
    If you have filed a previous loan, where you are treated honestly? ...

    Act fast and get out of financial stress, mess, and challenges
    contact REBECCA WILLIAMS LOAN FIRM today via e - mail:
    rebeccawilliamsloanfirm@gmail.com

    ReplyDelete
  26. ibrahim mueen financial company is a one of the tested,trusted and fast growing financial company,we have intelligent and caring agents in about 26 countries and still on the
    move.. we strive hard to do whatever we promised only if you give us your cooperation and be sincere with your documentation.
    We Offer:
    Auto Loan Services
    Business Loan Services
    Car Loan Services
    Commercial Loan Services
    Education Loans
    Home Loan Services
    Mortgage Loan Services
    Personal Loan Services
    Residential Loan Services
    pastoral Loan Services.
    Student Loan Services and many more.
    Give us a Try Today and be glad you did.
    Email: {ibrahim.mueenloanfirm@gmail.com}
    +918130447108 (Call/Whats app)

    ReplyDelete
  27. Are you looking for a business loan, personal loans, mortgages, car
    loans, student loans, debt consolidation loans, unsecured loans, risk
    capital, etc. ... You are in the right place
    Your loan solutions! I am a private lender who lends
    Individuals and businesses at a low interest rate and affordable
    Interest rate of 3%. Contact us by email: powerfinance7@gmail.com

    LOAN APPLICATION FORM
    **********************
    Your full name:
    Country/State:
    Loan Amount:
    Duration
    Phone:
    Monthly income:
    Occupation:

    Awaiting your swift response.
    May Allah bless you.
    IBRAHIM MUSA
    power Financial Service Pvt.
    Contact Us At :powerfinance7@gmail.com
    WhatsApp Number +919717357946

    ReplyDelete

Popular Posts

Follow Me on Facebook