New Fixed Rate Home Loan

New and best Fixed Rate Home Loan in town!

1st 2 years: 4.25% only
Thereafter: 4.99% Fixed For Life
OR
Whole Tenure: 4.85% fixed for life

No lock-in period except for refinancing.

PEACE OF MIND ON YOUR LOAN INSTALLMENT regardless of what happens to interest rate.

With US Federal Reserve pulling a stop on QE (Quantitative Easing), likelihood interest rates will rise soon. Same applies to Malaysia. PROTECT YOURSELF NOW!

Interested please email me at mortgagebroker.my@gmail.com

Latest Commercial Loan Offer

Special Commercial loan package, currently best in the market, Limited time offer.  Terms and conditions apply,

Loan amount
Between RM300k to 499k (BLR-2.25%)
Between RM500k to 999k (BLR-2.3%)
At or above RM1m (BLR-2.35%)

Max margin up to 85%
3 Year lock-in period
maximum tenure 25 years or age 70, whichever comes first.
Applies to both new purchase and refinancing.

Commercial Property type:
Shop house and shop office only

If interested, contact me at mortgagebroker.my@gmail.com or call.

Latest New Measures by Bank Negara to Reduce Household Debt

Recently there was much speculation about Bank Negara considering to ban DIBS or Developer Interest Bearing Scheme from new property launches. DIBS is essentially a scheme from property developer whereby upon booking any of their properties, the buyer need not service the interests on progressive loan disbursed from the bank during the construction period of the property up to completion.  The developer will instead service the interests. This gives buyer a sense of "feel good" factor as the buyer need not fork out any more money besides the initial downpayment until property is completed.

So as we were expecting BNM to do something about DIBS, it didn't happen, or shall i say, hasn't happened. Instead, BNM introduced other new measures late last Friday and the effect was immediate.

The new measures are as follows:

1. revise maximum tenure for any property loan (residential and non-residential) to maximum 35 years only. (down from previous 40 to 45 years for residential loan)
2. limit maximum tenure for personal loan to 10 means (previous could be as high as 25 years)
3. no more pre-approved credit card personal loan. That means, the banks and credit card agencies can no longer offer anyone a pre-approved credit card or personal loan over the phone from now on as they normally did previously, something which i personally find very annoying, as the message often delivered by these agencies were a false sense of easy money and "low" interest rates when in fact very often it wasn't.  

The staggering statistics is that our latest household debt to GDP has ballooned to 83%, apparently the highest in Asia! The main culprit appears to be the extraordinary growth of personal loan, and to a lesser degree, property loans. 

Previously, a number of Malaysia's non-bank lending corporations such as MBSB and Bank Rakyat were able to perform the role of lending without coming under the purview of Bank Negara, and a number of these non-bank entities have achieved exponential growth for the past few years due to the expansion of personal loan, mainly to the civil servants, through direct deduction of the monthly installment from their payroll. The past practice of self-governance is no more as under the new Financial Services Act (FSA) introduced recently in place of BAFIA, these entities are now under the purview of Bank Negara, and Bank Negara has the right to audit their books as and when deems fit. 

As a whole, i believe the new measures are steps aimed at the right direction. From the property perspective, the reduction of tenure will most likely impact the younger generation (<35years old), but will not be significant, as the impact on loan installment between 35 years and 40 years tenure assuming a housing loan amount of RM500k is only about 5% increase in installment. 

Personally, I am expecting more cooling measures to come as the above are likely only the beginning. We shall wait and see. 

Financing For Vacant Bungalow Land

Are you buying a piece of bungalow land and looking for the best financing?

Normally, the highest margin of financing is between 60% to 70% for land, and most banks only go for land at prime location only.

If you want better financing, you should include construction over it. If you include both land and construction, your margin of financing can be up to between 80% to 90%! That's quite a drastic difference.

Take note that most come with condition that you need to complete building within 2 to 3 years.

Interested? Email me.

How To Get 100% Financing Housing Loan?

Is this a myth or a fact? Answer is it's a fact.

Only few banks are offering this. Of course, subject to terms and conditions, and your financial profile meeting the criteria. The maximum DSR capping is generally extended after taking into account the new loan installment.

This is good for buyers who want maximum financing, so they pay less or nothing from their pocket.

Bear in mind the normal Loan-to-Value (LTV) guideline still applies. In this case the differential that make up that 100% (extended loan) is capped at maximum of between RM150k to RM300k.

The "catch" is you need to pay a higher interest rate for the extended loan. Depending on your purpose and objective, this may still be worthwhile. Of course, you can still enjoy the normal housing loan rate for your normal LTV eligibility.

Maximum loan tenure is 10 years for the extended loan.

Interested? Please contact me via email.