26/10/2023
𝟏𝟏 𝐒𝐭𝐞𝐩𝐬 𝐅𝐨𝐫 𝟏𝐬𝐭 𝐇𝐨𝐦𝐞 𝐁𝐮𝐲𝐞𝐫 𝐂𝐡𝐞𝐜𝐤𝐥𝐢𝐬𝐭
𝟏) 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐲 𝐅𝐨𝐫 𝐁𝐮𝐲𝐢𝐧𝐠 𝐇𝐨𝐦𝐞
* investment or own use (family home)
𝟐) 𝐆𝐞𝐭 𝐂𝐫𝐞𝐝𝐢𝐭 𝐒𝐜𝐨𝐫𝐞 𝐑𝐞𝐚𝐝𝐲
* For bank to view financial health, debt & repayment rate to access creditworthiness for your
loan.
* Build credit score by applying credit card & make payment on time; financial institute can
read for financial records & prompt payment.
* Stable career & income can enhance your credit score and perceived you as low risk
borrower.
* minimise debt as much as possible
* Improve credit score by repayment on time, reevaluate your financial & rearrange payment
timeframe with the bank.
𝟑) 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐀𝐟𝐟𝐨𝐫𝐝𝐚𝐛𝐢𝐥𝐢𝐭𝐲 & 𝐎𝐭𝐡𝐞𝐫 𝐂𝐨𝐬𝐭𝐬
* Calculate affordability base on current salary not base on future salary you foresee
* Fees; SALES & PURCHASE AGREEMENT (SPA), legal fees, stamp duties, down payment,
etc.
* After purchase; maintenance fees, renovation, furnitures, etc.
* May ask if there’s freebies for new property, how much is the discount/rebates
* Affordability can be calculate by using Debt Service Ratio (DSR) Calculation
𝟒) 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐄𝐥𝐢𝐠𝐢𝐛𝐥𝐞 𝟏𝐬𝐭 𝐓𝐢𝐦𝐞 𝐇𝐨𝐦𝐞𝐛𝐮𝐲𝐞𝐫 𝐁𝐞𝐧𝐞𝐟𝐢𝐭
* 1st homebuyer home schemes, eg: exemption of stamp duty; Effective till 2025, it applies for
the instrument of transfer and loan agreement for your first home, as long as the property
price is below RM500,000.
𝟓) 𝐂𝐨𝐦𝐩𝐚𝐫𝐞 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞𝐬 & 𝐋𝐨𝐚𝐧𝐬 𝐅𝐫𝐨𝐦 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐁𝐚𝐧𝐤𝐬
* Interest rates in Malaysia called Standard Base Rates (SBR) where all banks standardise their
interest rates link directly to the movement of Overnight Policy Rate (OPR).
* If OPR increase 0.5%, so as the interest rate. It will be easier to calculate mortgage interest
and compare the lending of each banks.
* 3 types of loan: Basic Term, Semi-Flexi & Full Flexi
* Basic term allow for certainty but no additional payment; Semi-Flexi & Full Flexi; allow for
additional payment on your loan, reduced interest rate if principal is paid off quicker.
𝟔) 𝐃𝐞𝐜𝐢𝐝𝐞 𝐌𝐋𝐓𝐀/𝐌𝐑𝐓𝐀
* Mortgage insurance = home insurance.
* Mortgage Reducing Term Assurance (MRTA); one-off payment at the beginning and decreasing sum over time.
* Mortgage Level Term Assurance (MLTA); paid by monthly payment throughout.
𝟕) 𝐏𝐚𝐲-𝐎𝐟𝐟 𝐄𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐃𝐞𝐛𝐭
* The more debts you have, the more financial burden. Bank will think twice in approving the
loan application.
𝟖) 𝐏𝐫𝐞𝐩𝐚𝐫𝐞 𝐚𝐧𝐝 𝐤𝐞𝐞𝐩 𝐚𝐥𝐥 𝐲𝐨𝐮𝐫 𝐝𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬
Documents to prepare to prove your creditworthiness for your home loan.
* Copy of Identification Card
* Receipt of property booking
* Sale and Purchase Agreement
* Most recent 3 to 6 months’ payslip
* Most recent 3 to 6 months’ bank statement
* Most recent EA form
* Most recent EPF statement
* Most recent B/BE; Income Tax Form
* Any other financial statements, like Fixed Deposits, Bonds, etc
𝟗) 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐑𝐞𝐩𝐮𝐭𝐚𝐛𝐥𝐞 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫𝐬
* The developer behind the project.
* Not blacklisted by Government
𝟏𝟎) 𝐅𝐈𝐍𝐃 𝐓𝐇𝐄 𝐑𝐈𝐆𝐇𝐓 𝐇𝐎𝐌𝐄
5 Standard Consideration When Buying Property
a. LOCATION
b. DISTANCE FROM OFFICE/WORKPLACE
c. PROXIMITY TO PUBLIC TRANSPORT
d. SECURITY & SAFETY
e. PRICE PER SQAURE FOOT
