Debt Consolidation For Malaysian (Part 2)

Now I shall try to explain how this works..

First and foremost, caveat emptor...

1st Criteria:
This is not meant for those of you who are in the following category:

1. Having FINANCIAL TROUBLE
2. Poor payment track record in your CCRIS
3. Declared Bankrupt
4. Need QUICK MONEY (like tomorrow!)
5. Poor CTOS record...like facing litigation, acting as guarantor for defaulted loans, etc
6. Excessive amount of credit card debt! example, total credit card debt more than 3 times your gross income (unless you can proof that you settle monthly outstanding in full every month consistently, then may be got chance)
7. You are RETIRED with no income
8. You are NOT A MALAYSIAN (Sorry, priority is to serve our fellow Malaysian first!)
9. High Debt Service Ratio (You can ask me to calculate for you if you are not sure though...)
10. You want the cheapest rates in town! (Sorry, i cannot offer you the lowest rates but i can assure you the rate is still fairly competitive at housing loan rates. That is a small price to pay for able to consolidate your debts and/or get the next property you desire)

If you are one of the above, you can stop reading now. 

2nd Criteria:

Among your properties, do you have at least one property whereby you can extract plenty of equity from it? I shall explain what this means..

eg., 

Assuming Outstanding loan amount = RM500k

Property Estimated Market Value is say RM1.5 million!

Net equity is therefore RM1million (1.5m minus 500k)

Apply 80% refinancing margin of financing (assuming you qualify) on the net equity RM1million = RM800k, and use that amount to settle your other debts such as other housing loan at the same time and other debts such as credit card.. 

Just to clarify, we shall settle the other housing loan directly for you. So even if you have more than 2 housing loan, NO ISSUE whatsoever! You can bypass the 70% LTV (Loan-to-Value) rule, for those who understands what i mean. This is provided the excess equity or refinancing cash-out portion is enough to settle these loan.  However, we cannot do the auto-settlement for credit card. You will need to do it yourself (DIY). 

3rd Criteria
The minimum refinancing loan amount must be RM500k and above.

Get the picture? This technique is what term as Debt Consolidation. 

What Benefits do you get?

• Much cleaner debt record post consolidation (like a cleaner Balance Sheet). The banks will now like you MORE as your CCRIS will now look like a beauty pageant!
• If you are left with only one housing loan (post consolidation), you can now purchase another residential property at 90% margin of financing!
• Reduce your interest costs significantly, especially if you have much credit card debt or personal loan, or old and small housing loan with unfavourable rates!
• ZERO Moving Cost! Yes, we are now having a Special Promotion limited time Offer. For a million dollar loan, this could save you easily RM20k!

To find out more, email me with your personal and debt profile at mortgagebroker.my@gmail.com. Remember, READ the 1st, 2nd & 3rd Criteria first to see if you qualify.

Cheers!

Debt Consolidation For Malaysian (Part 1)

Are you suffering from one or any of the following:

1. Stuck with too many or multiple bank loans, credit card debt and/or personal loan?
2. Cannot secure high margin of financing (80% or 90%) from banks for your next property purchase, particularly residential property, due to holding 2 or more housing loan?
3. Facing bank loan rejections from banks due to high credit card debt? 
4. Cannot refinance your existing housing loan due to high commitment as a result of banks' strict lending guideline in adopting 10-year tenure?
5. Paying high interests for your current debt commitment?

If you are suffering from one or any of the above, you are certainly not alone. Many Malaysians have in fact fallen into the same trap as at now. After all, Malaysia is being "boosted" with one of the highest loan to GDP ratio in Asia, and that is why Bank Negara had to take stern actions to curb the over zealousness of property purchase!

Just to clarify...credit card debt encompasses everything from quick/advance cash facility, Balance Transfer and installment pay plan. Yes, while you may be attracted by various merchants to buy your dream sofa or latest mobile phone or most advance TV using the zero interest installment pay plan, they are not totally FREE as they come with a hidden cost! These things will appear in your CCRIS as debt, regardless of whether you settle fully or partially every month!

Until recently, refinancing was the theme for many property investors as they could easily extract their excess equity from their existing properties to finance their next purchase but this is no longer easy today. This is because banks have imposed strict assessment guideline for refinancing, using only 10-year loan tenure, and as a result, many would have been disqualified.

WHAT IF I TELL YOU I HAVE AN IDEAL SOLUTION FOR YOU?

That is, for example...
NO MORE 10-year loan tenure assessment guideline

YOU CAN STILL BORROW AS MUCH AS 80% MARGIN OF FINANCING, EVEN IF YOU HAVE MORE THAN 2 HOUSING LOAN

Sounds too good to be true?

Well, it is only true if you know how to do it.

The key phrase here is called "DEBT CONSOLIDATION".

In your mind, you must be thinking it must be some kind of Personal Loan initiative to do Debt Consolidation....After all, I have googled around and the end result seems to focus only on using personal loan as the means. To me, using Personal Loan is only a short term measure, and only effective in covering small amount or short term loan, and comes with a high cost (interests) too.

NO, IT IS NOT PERSONAL LOAN.

OUR SOLUTION IS HOME LOAN. Yes, you hear it right! The one that everyone loves!

More detail in my next post...

Malaysia Bank Mortgage Update

Dear Readers,

Many changes had taken place over the last one year, ranging from the introduction of Base Rate in place of the Base Lending Rate (BLR) to the introduction of more restrictive lending guidelines and polices such as reduced margin of financing, restrictive loan tenure (for refinancing), etc. For Malaysian working in Singapore and Singaporeans who used to be happily buying up properties in Malaysia, even they are affected as they now have to compulsorily submit their Credit Bureau Singapore (CBS) Report for bank loan applications. (Just to clarify, CBS is similar to our CCRIS report)

So now you have it, the new loan rates are typically structured in "Base Rate+Spread"=Interest Rates. E.g., 3.99+0.56%... Each component differs for all banks. Base Rate (BR) essentially is determined by the banks' benchmark cost of funds and the Statutory Reserve Requirement (SRR). Whereas Spread reflects borrower credit risk, liquidity risk premium, operating costs and profit margin. In the normal circumstances, banks will revise the Base Rate from time to time to reflect changes in their cost of funds.

For Borrowers who secured their loan prior to 2015, do you need to be worried with the above? Not at all. This is because whatever secured last time remains the same or status quo. However, should you go for refinancing, the new regime shall prevail.

Below is the latest Base Rate for various Financial Institutions as per April 2016 (Source: BNM):

From the Table, you could see that Maybank is having the lowest Base Rate. Do you then just jump in to apply for their loans? Answer is NO. Their effective rate is still similar to other banks because their spread is set high! So is just an illusion!

Back to the bottom line, each and every bank has a different way to assess the loan applications. Your chances of securing loan approval will still depend very much on your credit profile and whether it can match with bank's requirement.

All the best in 2016 for your property journey!

Latest Loan Promotion

Dear all readers,

Just to post a quick update that we can now offer housing loan rates up to BLR-2.5% and commercial rates up to BLR-2.35%! Terms & conditions apply.

If interested please email us at mortgagebroker.my@gmail.com. Please provide us the particulars of your purchase and your contact detail in your email for quicker processing.

Thank you.

Regards
PS Thoo

Mastering The Power of Persuasion

FREE 2-DAY MASTERING THE POWER OF PERSUASION WORKSHOP

Heard of Joel Bauer? Frankly I have not, but curious. Reason is because i found out he is supposed to be one of America's Top Celebrity Persuasion Guru…and his clients include many common household names such as Mark Victor Hansen, Alex Mandossian, Armand Morin, John Childers  and Robert Allen.

Well, Joel is coming to town (KL) and giving away a 2-day training absolutely for "FREE"! Well, it's literally for FREE unless you want to pay for his other courses, that is what I have been promised.

According to the host of the event, Wealth Mentors, during his 2-day training, you will learn his 30-year blueprint on how you can persuade people who don't want to be persuaded.

What Can You Learn?

• The Amazing Power To Separate People From Their Money – Every Time! 
• The Magnetic Charisma To Draw Attention And Win Trust! 
• The Step-by-Step Formula To Influence And Persuade… One-on-One and One-on-Many  
• The Ability To Preserve Business & Personal Relationships For Life!

It appears that Joel was also featured in Wired Magazine, Wall Street Journal, The Business Times and has appeared on ABC, NBC, CBS, MTV, CNN and Channel NewsAsia TV..quite a handful!

Well, I'm planning to be there to see how good he is (if I manage to cancel my flight to Bangkok due to personal reason), so hope to see you there. If you are interested, you may register for the event here and get a free ticket to Joel Bauer's Mastering The Power of Persuasion Workshop while stocks last.
See you there.

PASSION2PROFIT - MASTERING THE POWER OF PERSUASION
13th & 14th May 2013, BERJAYA TIMES SQUARE

New Interest Rate Framework Effective 2Jan 2015

According to Bank Negara, effective 2 Jan 2015, the base rate will replace the BLR (Base Lending Rate) framework as the main reference rate for new retail floating rate loans. The base rate will be determined by the financial institutions’ benchmark cost of funds and the statutory reserve requirement, which currently stands at 4%. Other components of loan pricing, such as credit risk, liquidity risk premium and operating costs, will be reflected in a spread above the Base Rate.  The reasons for the shift to the new framework are: i) to address the issue of negative spreads between retail lending rates on new loans and BLR; ii) improve the transmission mechanism of monetary policy; and iii) to promote a more transparent pricing of floating rate retail loans. 

Also noted with interest is that Malaysia household debt ratio to GDP had risen to 86.8% in 2013 (vs 2012’s 81.3% and 2011's 76.2%). However, growth had slowed from 13.5% in 2012 to 11.7% in 2013. BNM expects house prices to remain elevated and will continue to be largely driven by the structural mismatch between supply and demand.  

(Source: 2013 BNM Annual Report) 

Interest Rate Sets To Rise, and Is Not Just BLR

Barring any unforeseen circumstances, the good old days of low interest rates is over soon. Therefore, be prepared to tighten your seatbelt for your secured property loans.

As we all know, US QE tapering has already begun and is a matter of time the Federal Reserve will start raising their interest rates. We have already witnessed a number of Asian countries started to raise their interest rates too, in order to prevent significant capital outflows. Will Malaysia be any different?

The answer is quite a certainty, NO. Foreign liquidity is like a sum of all parts, someone will gain at the expense of others, and vice-versa.

At the banking side, we are already seeing banks gradually revising their interest rates upwards, by reducing the spreads. That means to say, loan packages such as BLR-2.4 or BLR-2.5% may just be a thing of the past. And we are not even talking about BLR yet (currently at 6.6%), which is directly influenced by Bank Negara's OPR (Overnight Policy Rate). Few months back, Bank Negara already presented a working paper on revamping the BLR framework, with the intention to protect the risks of Malaysia's lending financial system. Obviously, Bank Negara is concerned that with the potential real estate property cycle reaching its peak, our banks might have undertaken too much risk by undercutting their margins (vs the cost of funds).

Should say BLR increased by 50 basis point, and spread reduced to 2%, the effective interest rate will become 5.1%. That translates to about 11% increase in monthly installment for a loan size of RM500k with 30 years loan tenure!

For the more conservative, time to look at fixed rate loan perhaps?

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.

Usage of Credit Card Affects You

Most people (including me) like using credit card because one can pay later (upon payment due) and you get to collect reward points for gift redemption later. As long as one makes payment promptly before the due date, no issue whatsoever.

However, it's a different story now! Be very careful with your credit card spending, as it will affect your credit eligibility when applying for a loan! All spending is now linked real-time (or almost real-time) to CCRIS and they will appear as OUTSTANDING in your CCRIS report even though the amount is not due for payment yet! Most banks have implemented this already. In the past only late (overdue) payment appeared as outstanding.

In other words, as and when you buy anything with your credit card, it will appear as amount outstanding in your credit report and will therefore become part of your commitment as well.

Personally i don't think this is fair but Bank Negara obviously think otherwise, in order to clamp down on credit card debts.

Fix your loan interest rate for LIFE!

Are you concerned about rising interest rates and therefore risk of not able to repay your monthly installment? Why not lock in your loan interest rates at fixed rate for life?

Currently the best offer is 4.80% fixed. Take advantage of this historical low rate now. Free yourself from further surprises and stabilize your cash flow.

Special Ultra Low Rate Loan Package

Good news! I can offer you the following limited time only special home loan offer at ultra-low interest rate at BLR-2.45%, with only 3 year lock-in.

1st 3 Years: Fixed at 4.38%;

Thereafter: BLR-2.45%

Minimum loan amount only RM300k!

If interested, please email me at mortgagebroker.my@gmail.com.

The bad news is the offer expires 12th April 2012. So hurry as response is overwhelming!

Terms and conditions apply.

Bank Mortgage FAQ

This is a common question I'm being asked...As a Mortgage Broker, can we offer the best package in town?

The answer is certainly YES! As far as the banks are concerned, we are also helping them to secure more deals, with minimal costs, so you can be assured that you can get the best deal, provided you meet the bank's criteria as always.

As at now, the best mortgage lending rate we can offer is up to BLR-2.5%. Terms and conditions apply.

Pay Less With Your Housing Loan

Are you feeling the burden paying too much for your upcoming or existing housing loan installment? How about just pay interests for the next 3 to 5 years and nothing else? Or how about service only half the full loan amount and the rest defer until you retire?

Contact us now for further details.

Latest Flexi Loan Promotion With No Monthly Fee

Tired of paying monthly maintenance fee for full-flexi loan account? We have the right solution for you that helps you save more - no monthly fee, and up to 100% discount on stamp duty, and more!

Contact us now to enjoy more savings with our latest full-flexi loan.

Latest Home Loan Promotion

Would you like to have a Home Loan with up to 100% Margin of Financing? You can now do so together with your renovation!

Contact us now for further details.

Refinancing

Looking to refinance your home loan? Or do you have a housing loan that is dated more than 5 years old? Look no further, we have the best refinancing package in town, with up to 90% margin of financing at attractive rates. We can help you to achieve significant savings in interests and/or help you to restructure your loan that fits your needs. You may choose to cash out for other investment purposes or simply to save interests.

If you already have more than 2 housing loans and would normally subject to the 70% Loan-To-Value (LTV) ratio, talk to us now as we have the solution for you.

Contact us now for further details.