Needto find the best mortgage loan?
Thisblog gives an insight and explains the basics, technical terms and gives you invaluable tips on financing a house.
Mortgage rates in Malaysia are affected by the
a) type of property
b) stage of completion
c) moving financial cost
d) cost of the property
These rates vary from bank to banks and margins of finance can be found up to 95 per cent whilst repayment can be 15years or up to the age of 70, whichever comes first.
Your source of funding can be:
a) Personal Savings
b) Personal borrowings from relatives, banks
c) Withdrawal from Employee Provident Fund (EPF) account
d) Loan facility from a financial institution
Normally you should pay the initial down-payment of 5% to 10% using personal savings plus you should allow for incidental expenses like legal fees, MRTA insurance, renovations and moving in expenses.
Sometimes you can make EPF Withdrawals from your Account 2 to make the initial down-payment. It is necessary to check with your nearest EPF office to inquire about your withdrawal eligibility.
Choosing your Loan facility
Shop around and don’t just take your developer’s recommended bank before you decide
on any financial institution.
Factors you must consider:
a) interest rates
b) tenure of your loan
c) your monthly repayment
d) possibility of lump sum repayment
e) possibility of increasing frequency of payment
a) what is the penalty of early repayment
b) what is the BLR interest rate adjustment mechanism
c) availability of bank branches
d) which loan package suits you best?
e) What financial charges involved? Example, legal fees, service fees, document fees, government fees and charges, etc
processing might take one to two weeks before approval is given provided you have submitted all the relevant documents such as:
a) photocopy of identity card or passport
b) Your latest 3 months’ salary slip/Fixed deposit/savings passbook
c) latest income tax return form (Form J) or EA form
d) Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer
e) photocopy of the land title (if any)
f) Valuation report for completed houses and/or
you acceptance of the letter of offer, you can proceed to appoint a lawyer to draw up the loan documentation. Normally, you would choose from a list of panel lawyers provided by your financial institution. In most cases, the timeframe for the completion of this legal process should not exceed 6 months.
It is preferable to consult advice of a friend or relative, who’s had the experience to avoid inflated rates, extra and unnecessary costs and hassles.